Manawatu Mayor says flood relief cash under control

Manawatu District Council Mayor Ian McKelvie is defending his area's local bodies against accusations of "dithering" in the distribution of flood-relief money.

It was claimed last week that at least $5 million in relief money was sitting in local body coffers while bureaucrats decided how to spend it.

Civil Defence Minister George Hawkins last week gave a cheque for $4.4 million to the region, and Mr McKelvie said allegations of dithering were made before the cheque had been cashed.

"I don't believe there has been a hold-up ... because until you determine needs, you can't distribute funds," he said.

"Inevitably it's going to sit in the bank for a week or two."

He said the Manawatu District Council had about $896,000, of which about $120,000 had been allocated. That money would go to agencies such as Manchester House and the Rural Support Trust.

No money had been paid to needy individuals, but payments were likely to be made "probably on a basis of established need", he said.

District council trust members met yesterday to decide on the next round of allocations.

The Manawatu-Wanganui Regional Fund is holding about $5 million, and the seven local bodies under its jurisdiction will be able to apply for money.

The seven local authorities, which include the Tararua, Horowhenua, Palmerston North City, Wanganui, Rangitikei and Ruapehu councils, all had their own relief funds, Mr McKelvie said.

There would be some delay in apportioning relief money, as authorities would have to "show some consistency in how we do things", he said.

An example of such collaboration was the case of Scott's Ferry and Tangimoana - two settlements that could "throw a rock" to each other and which were severely affected by the February disaster, but were under different local authorities.

Where allocations were happening "reasonably quickly", it was inevitable that money would not be distributed entirely adequately.

Local authorities would have to do their best to distribute the money fairly, Mr McKelvie said.

- NZPA