Government flood bill may hit $40m

Repairs to infrastructure and contributions to flood relief funds would cost the Government $30 million to $40 million.

The Government faces a bill of up to $40 million to help repair flood-devastated areas of the Bay of Plenty.

Prime Minister Helen Clark yesterday announced measures to help those affected by the floods.

She said it was estimated that repairs to infrastructure and contributions to flood relief funds would cost the Government $30 million to $40 million.

Claims worth $10 million have already been lodged with the Earthquake Commission.

Last year, the Government spent about $300 million on floods in the lower North Island and $100 million on Bay of Plenty floods.

Helen Clark, who visited the flood zone on Friday, said that while the area affected was not as big as last year's flood zones, the damage was extreme.

"It is not an exaggeration to say that the area of the township of Matata where the great boulders, waters and mudslide came down the stream does look like a tsunami-affected site."

Helen Clark said the Government would appoint a recovery facilitator for Matata.

The facilitator would work with the Whakatane District Council to provide support and recovery for the town.

The recovery scheme would include planning, stream diversions, clean-ups and land purchases.

"Consideration is being given to the need for additional areas of recovery assistance such as with help for housing, for those left homeless or with badly damaged homes," said Helen Clark.

The Government would contribute $250,000 to the mayoral relief funds of the three councils affected by the floods, she said.

The Cabinet had also agreed to remove the thresholds for costs that a council would normally meet before calling on the Government for help.

Work and Income's Taskforce Green schemes, which use unemployed people, would help with recovery and clean-up efforts.

The agricultural recovery programme operating in the eastern Bay of Plenty was being extended to include badly damaged farms in the western Bay. This programme would run until the end of the year.