Support for NZ growers following cyclones

Farmers and growers a ected by recent weather events will receive help to secure cheaper loans, rather than be given cash, the government has announced.

Hawke’s Bay Growers previously asked for $750 million to cover costs created by Cyclone Gabrielle.

Emergency management minister Kieran McAnulty made the announcement on ursday, June 29, at Taylor Corp Packhouse in Waiohiki, Hawke’s Bay.

Two schemes have been designed to allow banks to support farmers and growers.

Relief e government says businesses with an average amount of debt could save between $45,000 and $225,000.

First, the North Island Weather Events Loan Guarantee Scheme will provide relief to rms seeking commercial lending. It leverages the Crown’s nancial strength by carrying 80 per cent of the credit risk on covered loans, allowing banks to reduce interest rates and o er more exible terms.

It will support loans of up to ve years for up to $10m, including the re nancing of existing loans at lower interest rates.

It should be up and running by the end of July.

Financial access e second scheme, the NIWE Primary Producer Finance Scheme, will provide access to capital for a ected growers and farmers unable to access lending without support, targeted towards businesses like to become commercially viable again, but currently unable to access commercial nance.

McAnulty says the scheme enables the government to provide concessionary loans and equity nance for land-based primary sector producers of up to $4m per business, from a fund of up to $240m.

“It will provide a way for businesses to fully re-engage with lenders at a later date, once we have helped them get back on their feet.”

To be eligible, a business must have had insurance, lost 30 per cent or more of its uninsurable productive capacity because of the weather events, and be able to show it has a reasonable prospect of returning to being a viable business.

It must also have sought and failed to receive lending from commercial lenders - a rm would not be immediately eligible for support if it has simply received less nancing that it desired from its commercial lender.

Recovery costs

Horticulture New Zealand worked with the government on designing the scheme.

Chief executive Nadine Tunley says many businesses are still grappling with funding repairs and rebuild e orts, and she hoped this would relieve the pressure.

LeaderBrand’s chief executive Richard Burke welcomes the package.

“Businesses like ours provide hundreds of thousands of jobs for people in the regions.”

Minister of Finance and Cyclone Recovery Grant Robertson says the government is not able to pay the full cost of the recovery.

“ is package has been carefully designed to ensure banks continue to play an integral role in the recovery,” he says.

It comes on top of $2 billion committed so far - $74m in grants to farmers and growers, $1b ood and cyclone recovery package as part of

Budget 2023, and $6b committed for a national resilience plan to focus on “building back better”.

Government inquiry into response announced Cabinet has decided to establish a government inquiry under the Inquiries Act 2013 to review the response to the severe weather.

McAnulty says it’s “normal practice for local Civil Defence to review the response to a severe weather event, regardless of size”.

“Given the signi cance of Hale, Auckland oods and Gabrielle, it is appropriate that a government inquiry is set up.

“It will be led by former GovernorGeneral Sir Jerry Mateparae.”

He says a ected communities, including rural, Māori and Paci c communities, have raised concerns about communication and support during the response.

“ ere are lessons to be learned.

“It is important we incorporate these into our systems so we can continue to improve.”

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