Cyclone-ravaged orchardists facing balance sheet woes
Many companies are financially mortally wounded by the effects of Cyclone Gabrielle and may have to sell up because of their high debt levels.
O'Connor told Hort News the Government has already made $75 million available for the clean-up. But he says it would be highly irresponsible of the Government to 'throw out money without a proper plan' and says this (plan) is now being worked through.
O'Connor says suggestions that a plan similar to what was rolled out in the 2004 Manawatu floods is no longer valid.
"Times have shifted and the challenges facing us now are quite different from that event in the early 2000s," he claims. "It is important that the recovery package in now is appropriate, fair and is actually sustainable."
O'Connor adds that the Government is very aware of the biological issue facing the hort sector and that time does not stand still and is moving as quickly as it can. However, he points out that ultimately the recover in some areas will be dependent on insurance companies' appetite for risk and on the banks' preparedness to fund.
"Any government support must be complementary to, and not instead of, those other parties."
O'Connor says the Government has been working with regional councils and grower organisations on how to deal with what he describes as a complex disaster in many parts of the country.
These involve dealing with silt, reinstating infrastructure, long term river protection and the options for overall recovery.
"Announcements on some of these are due in the near future," he says.
O'Connor adds that one has to remember that other parts of the country have also been affected such as Dargaville where the kumara crop was virtually wiped out. He says there is huge demand on the Government at the moment with people losing homes in other regions.
