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Disaster relief payments at last for flooded Northern NSW LGAs after MP Catherine Cusack quits in protest

Ballina was one of flooded local government areas that initially missed out on the federal payment. (AAP: Jason O'Brien)

Federal disaster payments have been extended to thousands of flood-affected Northern Rivers residents a day after a NSW Liberal parliamentarian quit in protest of the initial rollout.

Upper house MP Catherine Cusack objected heatedly to the decision to provide immediate extra financial support to people in the Lismore, Richmond Valley and Clarence Valley local government areas (LGAs) in the Nationals-held seat of Page.

Flood-affected LGAs in the neighbouring Labor-held seat of Richmond missed out.

Ms Cusack yesterday announced she was retiring from politics because she believed flood funding was being distributed on a political basis, rather than prioritising people in need.

"The idea that being a flood victim in a National Party-held seat makes you more worthy than a flood victim who is in the Richmond electorate ... is probably the most unethical approach I have ever seen," she said.

But today Federal Minister for Government Services Linda Reynolds announced an additional two weekly payments for residents of Ballina, Byron, Kyogle and Tweed of $1,000 per adult and $400 per child.

Senator Reynolds said the delay in support for these LGAs – three of four in the Labor seat of Richmond – was because initial assessments found Lismore and surrounds needed the money.

Asked about whether people in the four LGAs had been ignored, Ms Reynolds said:

Minister for Government Services Linda Reynolds denies the Federal Government bungled the flood relief process in Northern NSW.   (ABC North Coast: Leah White )

"As soon as we could, we've gotten that information from the NRRA (National Recovery and Resilience Agency) and we have made that determination today."

Ms Reynolds said a million Australians affected by floods in Queensland and New South Wales had now accessed disaster recovery payments.

The latest payments are in addition to a joint $1 billion Federal-NSW package announced this week.

'Should never have happened'

Ballina Mayor Sharon Cadwallader said she felt the allocation process had become politicised, adding to people's stress.

"I don't think that people should have been traumatised the way they were and this whole issue politicised to the extent it was," she said.

"It became a political football – it should never have happened that way."

 Ballina Mayor Sharon Cadwallader felt the situation became a "political football".   (Supplied: Sharon Cadwallader)

But she said she didn't feel the town had been abandoned and was "very grateful that we now have this support".

Labor MP for the Seat of Richmond Justine Elliot said the announcement is too little, too late.

"I still believe it was disgusting and offensive that we were not included in that original announcement," she said.

She said she felt the resignation of Catherine Cusack and internal criticism had helped hurry today's announcement.

"When they're resigning because they're so disgusted with him and his behaviour – it really shows what little faith they have in him and his competency."

Kean: understands frustration 

Ahead of the federal government announcement, NSW Treasurer Matt Kean acknowledged flood relief frameworks had failed people in the Northern Rivers region.

"I can understand people's frustrations – there are a lot of things that government needs to do now and into the future," he said.

"The current framework obviously hasn't worked in this instance."

Mr Kean said people in the Northern Rivers had every right to be frustrated at the government response to date.

"If me or my family were on the ground, I'd be very angry around a whole range of fronts," he said.

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