4 Nov 2010

Snow storm costly for Southland economy

9:45 pm on 4 November 2010

The costs arising from September's snow storm in Southland are expected to be over $1 billion and the flow-on effects for region's economy may linger for years.

The Insurance Council has released provisional figures which show about $50 million in claims from commercial and residential property owners, but stock losses will dwarf that figure.

Federated Farmers is putting the cost of stock loss and productivity between $500 million and $800 million.

However, Southland Chamber of Commerce chief executive Richard Hay says the massive losses for farmers will affect those who rely on the agriculture business well into the future and estimates the final total will be well over $1 billion.

At least 4000 domestic and nearly 800 commercial insurance claims have been lodged so far.