Government dips deeper for flood work

By RUTH BERRY political reporter

The Government yesterday committed a further $40 million to the flood recovery package, which could see some farmers get several hundred thousand dollars worth of help.

It brings total Government funding for the disaster recovery to $130 million. The possibility of further help will be evaluated in May.

The floods are estimated to have cost the agricultural sector $200 million with local infrastructure repairs costing a further $100 million.

The new support includes a $25 million agricultural package for farmers and growers and a community package of $15 million, which includes rates remission and additional help for road repairs.

Prime Minister Helen Clark said the support was more extensive than was normally available because of the magnitude of last month's lower North Island floods.

"The Government is convinced it must act quickly and generously to prevent wider regional impacts," she said.

Agriculture Minister Jim Sutton said the floods had a more serious impact on the country's agricultural industry than any other disaster in the past 30 years. About 2600 farms had been affected, some 800 of them "severely affected".

A month after the floods more than 550 people are still unable to return to their homes.

Under the agricultural package unveiled yesterday the Government will provide up to 75 per cent of the funds needed to restore essential on-farm infrastructure.

The money is for fixed uninsurable items such as boundary fencing, essential stock water, drainage and flood protection works.

Up to 90 per cent of the cost of re-establishing destroyed crops will be paid for by the Government.

Farmers and growers will have to invest $10,000 before the Government contributions start kicking in.

There is no ceiling on the amount the Government will invest in each business.

Mr Sutton's spokeswoman confirmed some farmers and growers might get several hundred thousand dollars worth of support.

New Start grants of up to $65,000 will be provided to farmers and growers who decide to leave their properties and agreements with creditors will be made to ensure they do not pursue the grant money to recover other debts.

Local committees will be established to validate claims and distribute the money.

The $11 million rates package will enable local authorities to remit rates on income-generating properties, including non-farm businesses.

Civil Defence Minister George Hawkins said mayors in affected areas had asked for this help, unwilling to try to demand rates from businesses left without an income.

Finally, an extra $4 million is being put into assisting local authorities repair local roads.

The cost of repairing State Highways in the flooded regions has been estimated to cost $10 million.

Local road repairs are expected to cost a further $62 million, of which $52 million will be covered by Transfund.

Federated Farmers president Tom Lambie said he was pleased the Government had recognised the scale of the disaster.

Restoration had to occur quickly to prevent further damage to the environment.

"There is a strong case for Government assistance. No one can deny that farming is by nature risky."

Most farmers accounted for that in their management and planning.

"But even the most cautious cannot be expected to deal with a greater than a one-in-hundred-year event."

National agriculture spokesman David Carter labelled the package a "credible response".

"This is a major disaster and needs to be recognised as such."

It was in sharp contrast to the initial Government response.

Previous Government assistance has targeted road repairs, the establishment of a clean-up Taskforce Green, and contributions towards repairing infrastructure.

Flood relief

* $25m Agricultural Recovery package to restore farm infrastructure and replant crops.

* $1.2m New Start grants for those forced to leave their properties.

* $11m Rates Remission for income generating properties.

* $4 million more for local roads.