Bill English

Wellington, Sept 9 NZPA - The first applications for emergency wage subsidies from Canterbury businesses have already been approved, Finance Minister Bill English told Parliament today.

The Government announced on Tuesday it was putting aside $15 million for the $350-a-week subsidies which can be paid to earthquake-affected businesses so they can continue to pay their employees.

Mr English said that in the day-and-a-half since the announcement was made Work and Income had received about 340 calls from employers and 36 formal applications.

"The first few have already been approved and we expect that to grow quickly over coming days," he said.

Updating Parliament on the cost of earthquake damage, he told MPs the $4 billion estimate issued by Treasury yesterday was "still a very early estimate" and a better idea of the overall cost would gained when more information was available.

"So far the Earthquake Commission has received 36,000 claims and expects this to rise to around 100,000 claims in coming weeks," Mr English said.

Asked about the cost to the economy, he said Treasury expected there would be lower GDP growth over the next two or three months but a net benefit over the 12 months following that as money from insurance companies and the Earthquake Commission was injected into the Canterbury economy.

Social Development Minister Paula Bennett said 40 extra trauma counsellors had flown to Christchurch.

"It's clear people are tired, very, very frazzled and are feeling the effects of the aftershocks that keep coming," she said.

The Government's telephone helpline, run by Work and Income, had taken more than 8500 calls with 700 coming in today.

Thousands of elderly people had been contacted by phone and more than 200 home visits had been made to ensure people were safe, Ms Bennett said.

So many students turned up today to help clear roads some had to be turned away, she said.

"The prime minister and I were talking the other night and in support of those students who doing such a great job we thought just a wee payment of $5000 would help them with some of their transport costs and to buy equipment and to feed them," she said.

"We also hear there are school students turning up, there are many, many, hundreds of New Zealanders turning up all the time."

Health Minister Tony Ryall said every district health board had prepared a list of staff who were ready to go to Christchurch at a moment's notice.

"I cannot speak highly enough of the contribution of our health professionals there, in both the community and the hospitals," he said.