Key reassures flood victims Govt will pay

Prime Minister John Key has reassured flood-hit residents of Nelson and Tasman that the Earthquake Commission has enough money to settle claims.

Hundreds of homes were damaged by the weather bomb that pounded the region this week and ratepayers are facing big bills for the clean-up operation.

But Mr Key said those who submitted claims to the EQC should be confident there was enough in its budget to pay for those that were approved - despite the billions paid out to victims of the Christchurch quakes.

"Just because we've had a disastrous set of events take place in Christchurch which has depleted the funds of the EQC, New Zealanders shouldn't be worried,'' Mr Key told Radio New Zealand.

"The liability ... will be met by EQC or the Government.''

Although the rain eased in the region today, showers were forecast for overnight and tomorrow morning before three days of fine weather. A Civil Emergency is not expected to be lifted until Monday and officials warned of more slips in the area.

Some of the residents from evacuated homes returned today as authorities continued with the clean-up.

Nelson Mayor Aldo Miccio said the cost to ratepayers of clearing the debris alone would likely reach $1 million, with the final repair bill running into the millions.

Civil Defence Group Controller Jim Frator said his organisation was focused on people without basic needs, including running water.

He told Radio New Zealand that building inspectors had red-stickered homes in the region, following the same process used in Christchurch after the earthquakes.

Occupants may be able to move back in eventually, but the homes are uninhabitable at present.

The Insurance Council is expecting hundreds of claims but spokesman Brett Solvander said they will be able to pay out, despite the Christchurch quakes.

Roads remained closed today, with officials making the reopening of the road from Takaka to Collingwood, which is cut off, a priority.

 

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