Flood relief package approved

The Cabinet has approved the first stage of a relief package for flood-stricken East Coast farmers.

Agriculture Minister Jim Anderton, who visited the region at the weekend, said the "early response" phase would offer income support through the Rural Assistance scheme and Enhanced Taskforce Green teams to help clean up.

"It is important to provide prompt support to those affected by the Gisborne and Tolaga Bay flooding, even though the damage is not as extensive as Cyclone Bola or the lower North Island flood event in February 2004," he said.

"We must assist the region to maintain their confidence, optimism and security for the future."

The Cabinet also agreed there should be further investigation into extra support for farmers and horticulturists who experienced significant flood damage.

The clean-up assistance will cost $150,000 and the Cabinet has delegated responsibility to the ministers of finance, agriculture and social development to approve funds under the Rural Assistance scheme.

Mr Anderton said a more detailed report would be provided to the Cabinet within a week, outlining specific information on the regional impact and scale of the damage.

That report would include advice on options to provide targeted assistance, he said.

When growers put their case to Mr Anderton, they said crop and wage losses amounted to more than $10 million.

They estimated farm-gate losses of $8.4 million for squash, sweet corn, maize and broccoli and put the value of lost wages as $2.4 million.

They wanted a clean-up and replanting package similar to that organised after the Manawatu floods.

The $150,000 approved for the clean-up includes:

* $70,000 for 16 Taskforce Green personnel to assist with fence repairs, drain clearance and general duties for about 10 weeks.

* $20,000 for the Gisborne District Council to help with equipment and vehicle hire.

* $60,000 to cover contingencies and other unforeseen costs.

The Rural Assistance scheme comes under the Special Needs Grant programme and allows the Ministry of Social Development to provide financial assistance to cover essential living costs for farmers affected by adverse events.

Mr Anderton said the Government would consider funding a study to explore flood protection measures for Tolaga Bay.

- NZPA