Red Cross defends tsunami relief

A volunteer in Khao Lak, Thailand, works on a fishing boat, many of which were destroyed in the 2004 tidal wave. Paula Bronstein / Getty Images

The New Zealand Red Cross has hit back at claims money donated towards its Asian tsunami relief appeal is not being spent while victims live in squalor.

The Red Cross had its biggest ever response to the Boxing Day 2004 tsunami with New Zealanders giving more than $22 million to its appeal. Of that, $13.5 million was given directly to the Red Cross and $8.3 million was provided by the Government.

Some news media last month raised questions about the spending of tsunami aid, with one newspaper saying less than half of donations by New Zealanders had been spent as hundreds of victims continued to live in rotten tents and shacks.

Red Cross NZ director Andrew Weeks said in the organisation's annual review that it was estimated it would be more than a decade before tsunami victims could overcome their vulnerability.

"In these times of instant media coverage, the processes associated with a careful and well-planned reconstruction are likely to be inconsistent with the expectations of some stakeholders," he said.

It was important the Red Cross not give in to pressure to spend the donations quickly in rapid investments which returned instant results but had a potentially damaging effect on the people they were trying to help, he said in the report.

The Red Cross was co-ordinating its spending with the International Federation of the Red Cross (IFRD) and Red Cross Societies, which were implementing a $1.7 billion Plan of Action over the next five years.

The plan involved building 27,000 new houses and repairing 7000 in Indonesia, and building up to 15,000 houses as well as temporary shelters in Sri Lanka.

It would also provide water and sanitation facilities, rebuild schools and health clinics, and provide psycho-social support.

New Zealand donations helped more than 22,000 Red Cross volunteers and staff provide immediate assistance to more than one million people through $6.6 million given to the IFRD in Geneva in early 2005, the report said.

A further $145,000 was spent on New Zealand delegates working in the field, and with $274,000 accrued in interest, that left $15.5 million for ongoing tsunami relief efforts.

"The residual tsunami funds are currently held in a deposit account with all interest being accrued to the fund," the review said.

"They will be used to finance the future deployment of New Zealanders to help with the long-term recovery and selected projects in affected countries over the next 10 years."

- NZPA