Finance Minister Grant Robertson has told Q+A that the price tag for Cyclone Gabrielle will likely be in the billions.
He expects the total cost to be similar to the Canterbury earthquakes, in the $13 billion region, although some of that will be absorbed by insurance and the existing budgets of government agencies.
The basic necessities, shelter, food, water, power and communications are the first priority in terms of allocating funds to disaster relief.
Transport networks are a real issue, but will take longer to repair, he said.
There are immediate packages in place, including the mayoral relief funds and regional support package. Robertson said it's worth remembering Civil Defence payments are available - with $17 million dollars paid out already since the floods in Auckland.
When it comes to business recovery, "we're certainly looking sector by sector at what is needed there, Roberston said. "The package we provide in Northland might be quite different to the one we provide in the Hawke's Bay."
Robertson said: "It's a balance" between supporting the Reserve Bank in tightening the government's belt on inflation and responding with the support people need.
This means resources may need to be taken from other, unaffected regions to help with the recovery effort, although he was unclear whether this could impact larger projects such as Auckland's light rail project.
Managed retreat
Robertson said the scale of devastation that New Zealand's infrastructure has suffered can be traced to the country not investing enough in infrastructure resilient over the years, and its adaptation approach to climate change not being sufficiently robust.
One in seven Kiwis live in flood-prone areas and the plan will help them make decisions on whether they might retreat or elevate their homes. (Source: 1News)
New Zealand has $40 billion it can spend before the debt limit is reached, but experts believe the infrastructure deficit will cost hundreds of billions to fix.
"It does require a partnership approach, Robertson said, "so part of that is the government working with the private sector, local government, iwi.
"Two words New Zealanders are going to get used to hearing over the next few years in 'managed retreat'."
He said that requires understanding where communities can be made more resilient, where things can be done to the infrastructure so they can stay where they are, "and other communities and neighbourhoods where actually we have to accept it's no longer appropriate."
Robertson said: "We've got to still do emissions reduction. We've got to make sure we do our best there. But we also have to do adaptation.
"If those communities go back and rebuild today, are we responsible for letting them do that?"
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