Second person dies in Bay of Plenty floods

6.30pm - By JAMES GARDINER

Two people have now been killed in the floods sweeping the Bay of Plenty.

Heavy rain over the past 48 hours caused the second set of devastating floods to hit New Zealand this year.

Thousands of people have been evacuated from their homes and the damage bill is likely to run into of tens of millions of dollars.

A swarm of earthquakes measuring up to 4.6 on the Richter scale also hit the region from 4pm today causing minor damage.

The towns of Whakatane, Opotiki and Edgecumbe bore the brunt of 250mm of rainfall in 48 hours. The Met Service had expected the weather pattern to cause more widespread damage but it stalled over the central and eastern Bay of Plenty.

States of emergency were declared in Opotiki on Saturday evening and Whakatane a few hours later.

Beverley Mira Freeman, 67, was killed when a huge mudslide hit her home at Bryan's Beach, Ohiwa Harbour, near Whakatane. Mrs Freeman's husband ran to safety.

The second person was killed after a large eucalptus tree fell on her car at Pyes Pa near Tauranga. Firemen believe the tree was toppled by an earthquake in the area. The woman's name has not yet been released.

Thousands of hectares of farmland already underwater were further inundated as huge volumes of water were spilled from the Matahina hydro electricity dam.

Power station operator Trustpower said the earth dam, on the Rangitaiki River, was filled beyond capacity by the heavy rains.

Emergency services were hampered by numerous road closures caused by floodwaters and downed trees.

Army Unimog trucks began arriving at 4am today to help evacuate residents and more trucks were called in from bases and Waiouru and Linton.

Sightseers added to the problems, some driving too quickly through surface flooding and causing waves of water into houses.

Civil Defence Minister George Hawkins flew in to inspect the damage, which will land the Government and insurance companies with their second big clean-up bill just five months after the flooding that caused an estimated $312 million worth of damage in the lower North Island.

Insurance Council chief executive Chris Ryan said he expected reports early today on the likely costs.

"We're keeping a close eye on the situation," Mr Ryan said.

Insurance company loss adjustors were working in the area already.

"The issue that determines the final costs will be how localised the flooding is and the levels of insurance cover," he said.

The earthquakes would bring the Earthquake Commission into the picture, making it responsible for damage caused by shakes and land subsidence.

Mr Ryan added: "Even if this is significant in terms of cost it won't impact dramatically on the industry or on premiums. It's par for the course. That's what you have insurance for."