Cabinet approves quake funding package

6:25 pm on 6 September 2010

Cabinet has made an initial $5 million contribution to the mayoral fund set up to help those affected by the Christchurch earthquake.

The welfare fund is to assist people not covered by other agencies such as Work and Income.

Prime Minister John Key says Cabinet will make $94 million from the emergency works budget available immediately so work can start on fixing roads.

Mr Key says the state highway network has held up well, but there is extensive damage to residential streets.

He says the $5 million marks just the start of the Government's financial contribution, and the cost of restoring infrastructure will run into hundreds of millions of dollars.