Take three: Government has a third go at articulating cyclone relief package

Cyclone Recovery Minister Grant Robertson met with Hawke's Bay growers last week. Photo / NZME

It remains to be seen if the Government’s revised cyclone relief for growers goes as far as its recent apology.

Cyclone Recovery Minister Grant Robertson met with Hawke’s Bay growers last week, to clarify the “interpretation” of a relief package announced in June.

Government officials met with growers in Havelock North on June 29, to tell them the Government’s loan scheme would come with interest rates of 7 per cent.

That figure was retracted a day later, after sparking alarm among growers.

A spokesman for Robertson later told Hawke’s Bay Today “this figure does not paint an accurate picture of the situation”.

Now Robertson himself is saying some Government loans to cyclone-affected growers will be interest-free, although strings are attached.

“At Friday’s meeting I acknowledged that incorrect information was initially provided to growers that had caused a lot of distress, for which I apologised,’’ Robertson said.

National Party candidate for Tukituki Catherine Wedd. Photo / NZME

National Party candidate for the Tukituki electorate Catherine Wedd was at Robertson’s recent meeting, along with the initial one where growers were told of the 7 per cent interest rate.

She alleges that the 200 industry leaders who met with Robertson last Friday were told the Treasury official who quoted the 7 per cent figure in June had only been privy to the Government’s cyclone relief press release.

If there was more detail to the scheme, the official wasn’t briefed on it, she claimed.

“For a Government official to stand up at the meeting and apologise for misinformation, because all they had to go off was a media release, just shows the lack of planning and delivery by this Government in Hawke’s Bay,’’ Wedd said.

Yummy Fruit Company general manager Paul Paynter says this news has been better received than the last.

“Most people were looking at it thinking: we’re going to go broke here. So the revised package is a bit friendlier,’’ Paynter said.

Growers can apply for interest-free funding from the Government, should they be able to provide written proof from their usual lender that it will not loan them any more money.

There is also a loan-guarantee scheme that underwrites 80 per cent of bank lending.

Lending is capped at $10 million per grower.

Yummy Fruit Company general manager Paul Paynter. Photo / NZME

“But the biggest worry is the total package is $240 million and that’s for all the flood-affected regions: Northland, Bay of Plenty, Auckland, Waikato, the East Cape, everybody,’’ said Paynter.

“I think that’s probably wrong by about a factor of five, but they [the Government] have said they’ll keep an eye on it. It’s a starting point and they know that.’’

Tararua and Wairarapa are other regions for whom the $240 million of cyclone relief funding applies.

Here in Hawke’s Bay, Paynter is predicting “a pretty austere couple of years’' as the horticultural industry attempts to rebuild.

“This single event will take a billion dollars out of our regional economy this year and it’s all a big money-go-round, so it doesn’t matter if you’re running a cafe or a nail salon - over the next year, you’re going to feel the impact.’’

But for the growers he says are still living in caravans, horse floats and garages, Robertson’s visit was at least some recognition of their plight.

“He apologised for the previous cock up and certainly there appears to be a recognition in Wellington that something had to be done and this is a good first step towards doing it,’’ Paynter said.