Government to match flood relief donations

4.00pm

The Government will match dollar for dollar all the funds raised by nationwide flood appeals by the end of this month, Acting Prime Minister Michael Cullen said today.

Dr Cullen said that on the latest estimate, the Government would be committed to at least $3.2 million.

"This recognises both the considerable individual needs which the recent floods have caused and the generosity of the response of many ordinary New Zealanders to those needs," he said.

"Where possible, local delivery mechanisms will be used to allocate the money."

The Government is still assessing the full cost of the damage caused by the storms, with sources saying it anticipates a final bill of at least $100 million.

Dr Cullen did not speculate on a figure today but said severe damage to infrastructure was likely to run into "many tens of millions".


In the meantime more than 3000 farmers have been in contact with the Floods Rural Recovery Centre, as the focus shifts to supporting farming families and offering technical advice.

Federated Farmers Manawatu Rangitikei president Shelley Dew-Hopkins said farmers didn't like asking for help and she had lost count how many times she has heard one say they were not as badly off as someone else.

But she was encouraging farmers not to be too proud.

"That's what we are here for. There are many people who want to help get your farm operational again."

Established as part of the Manawatu/Regional Civil Defence Emergency Response Group, the group offers a one-stop shop for farmers looking for support, technical advice or just another farmer to talk to.

One of its key roles was coordinating offers of feed with farmers in need, coordinating labour such as fencers and drivers, and offering social support.

"There are shed meetings being organised across the district. We have a technical committee within our group coordinating speakers on a wide range of topics from re-grassing to animal health available to speak at these meetings.

"Agri-businesses are also offering technical information for farmers and some are organising information sessions.

"And we realise how important it is for farmers to be able to talk about what has happened to them and their farms. That's why we have farmers answering the phones. They understand the issues being faced across the region."

The team has also called over 2000 farmers compiling information on the damage for a survey of affected farms.

The information would be used by the Government to assess the amount of financial assistance and other aid required.

Meanwhile, the Manuwatu Rangitikei region's flood-affected farmers were being urged to manage their spending to get cashflows moving as fast as possible.

Bank of New Zealand agribusiness financial services general manager Ian Walsh visited the region yesterday, where about 800 of the bank's farmer clients had been affected by flooding.

Those farmers would carry about $500 million debt, mostly to improve farm assets.

"Our main concern is how farmers reinvest after this flooding. It will be important to focus on income-earning assets...to reinvest first in getting the cashflows back," Mr Walsh said.

For hillcountry farmers, that would mean spending on fencing, to ensure feed could be properly rationed over winter. For dairy farmers on the flats, it meant feed, stock and getting the milk production going fast.

The bank wanted to help farmers plan their reconstruction spending -- setting priorities and formulating steps to make a huge job manageable, Mr Walsh said.

- NZPA