Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Govt flood spending to cost about $130 million

17 March 2004 Media Statement

Govt flood recovery spending expected to cost about $130 million

Prime Minister Helen Clark, Agricultural Minister Jim Sutton and Civil Defence Minister George Hawkins today announced details of a purpose-designed package for those affected by the February floods.

Helen Clark said the government response went well beyond existing standard policies for disaster recovery because of the magnitude and economic impact of the natural disaster.

“The government is already providing around $90 million support through its existing standard response policies and other measures agreed over the past few weeks,” Helen Clark said.

“These measures cover response activities of the emergency services, immediate welfare needs for people affected, labour through TaskForce Green to help with the clean-up, support and advisory services, repairing critical infrastructure such as roads and bridges, flexibility to the Income Tax Act, and matching of donations to flood relief appeals.

“The measures being announced today will cost up to a further $40 million.

“Today’s decisions mean that, in total, the government will be committing about $130 million to help the flood recovery exercise.

“The further aid package agreed today consists of two major elements. They are an agricultural package of about $25 million; and a broader community package of $15 million that includes more than $11 million in rates remission for those most affected, and additional assistance for road repairs.

Helen Clark said the floods had been a major disaster for the lower North Island. They had dealt a serious blow to the economic infrastructure of several regions, and caused devastation to communities.

“The government is under no illusion as to the severity of the events of mid-February. The flooding caused extensive damage to roads, bridges and other infrastructure, devastated farms and other rural activities, wrecked houses and put at risk the livelihoods of many.

“The government is convinced that it must act quickly and generously to prevent wider regional economic impacts

Standard Measures Estimated cost ($m)
a) 100% of the initial response costs incurred by local authorities in taking care of the immediate welfare needs of those displaced as a result of the disaster 1.5-2.5
b) Costs incurred by the NZDF and emergency services in assisting with the emergency response >1.0
c) Civil defence payments to cover welfare costs for evacuees 2.4-3.9
d) Rural assistance payments to farmers not generating enough income to meet essential living expenses 0.5-0.9
e) 100% of the cost to repair state highways >10.0
f) Up to 90% of the cost to repair local roads and bridges 51.6
g) 60% of the cost to repair essential council infrastructure (beyond a threshold) 7.0
Total $74-77 million

Additional measures approved in recent weeks Estimated cost ($m)
a) Contribute to Mayoral relief funds 0.3
b) Match donations to flood relief appeals 4.9
c) Activate an enhanced, flexible Taskforce Green to help clean-up and repair damage 6.0-10.0
d) Establish a support service to victims of the disaster and personnel involved in the response 0.5
e) Implement a range of agricultural recovery measures (agricultural recovery facilitators, rural support coordinators, technical advice programme) 0.7
f) Amend the Tax Administration Act to allow IRD to remit Use of Money Interest and accept late re-estimation of provisional tax in relation to affected taxpayers 1.5
g) Appoint a national recovery support facilitator to ensure central government’s efforts are well-integrated 0.1
Total $14-18 million

Additional measures agreed today Estimated cost ($m)
a) Agricultural recovery package:
o financial assistance to farmers and growers to help restore essential on-farm infrastructure ($23.7m)
o new start grants for farmers and growers who are forced to leave their properties as a result of the floods ($1.2m)
o associated administrative costs ($0.42m)
b) Grants to local authorities to allow them to remit rates on income-generating properties (farm and/or non-farm businesses)
c) Further assistance to councils for repairing local roads
Total $40 million


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election