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NSW flood relief a 'cruel hoax', parliamentary inquiry hears as government agencies cop a grilling

Government agencies have faced fierce questioning about their responses during and after major floods.  (News Video)

The chairman of a parliamentary flood inquiry has accused the NSW government and Service NSW of running a "cruel hoax" on financial support for flood victims. 

Key government agencies involved in the emergency response and recovery fronted the hearing in Sydney today as part of an inquiry into this year's response to major flooding.

Service NSW faced tough questions on why fewer than 20 per cent of applications for a 16-week rental support program had been paid out.

The inquiry heard 11,667 applications for the grant have been received.

About 1,900 have been approved but 7,467 have been deemed ineligible.

The inquiry heard just $18 million had been paid out from a $248 million grant program due to close in nine days.

The flood inquiry put criticisms of the state government it heard during visits to northern NSW to the responsible agencies today. (ABC North Coast: Bruce MacKenzie)

Catherine Ellis, an executive director at Service NSW, told the inquiry applicants were typically given 28 days to provide documentation to prove they were eligible.

But inquiry chairman Walt Secord questioned what allowances Service NSW was making to help people who had lost paperwork and electronics to floodwaters.

"Isn't simply being in the community that had the worst flood in NSW enough?" he said to Ms Ellis.

Ms Ellis said that Service NSW assessed applications on the policy and guidelines that were set.

"In this case there are nearly 1,900 customers who have been supported in this grant and many more have been supported to access other grants," she said.

Resilience NSW Commissioner Shane Fitzsimmons said there had been a push to adjust grant programs to accommodate the unique needs of people hit by the floods.

"I don't think there's an off-the-shelf item in terms of disaster relief and funding arrangements that has not been modified or adjusted," he said.

"There's been absolutely a push by the government to see grants being delivered and administered as easily as they possibly can, striking the balance between trying to … mitigate fraud and abuse."

'Aussies will do what Aussies will do'

Earlier in the hearing, the SES and other marine-based agencies were questioned about the rescue efforts during the height of the floods.

SES Commissioner Carlene York was asked why civilians were directed not to conduct flood rescues in their own boats.

"[There is] rubble, refuse, very swift-flowing water, contaminated water," she said.

"Going out is very dangerous so I have an obligation to try and keep the community safe."

SES Commissioner Carlene York. (News Video)

The so-called "tinnie army" ignored directions from SES not to enter the water and has been credited with hundreds of rescues across the Northern Rivers region.

NSW Maritime was also asked why it did not participate in more flood rescues.

Executive director Mark Hutchings said his agency was not responsible or equipped for swift-water rescues.

"Operating in flood waters is the most dangerous, perilous thing that you can do," he said.

"But Aussies will do what Aussies will do."

Mr Hutchings told the inquiry he could be charged and come before the Coroners Court if he sent his staff into dangerous conditions and something went wrong.

Resilience NSW staff sleeping in vehicles

Mr Fitzsimmons spent most of the day in front of the inquiry as it examined the immediate emergency response and recovery and rebuilding plans.

The agency was formed in response to the Black Summer bushfires but has faced criticism throughout the inquiry for its performance.

Bristled: Resilience NSW Commissioner Shane Fitzsimmons. (Australia Day Council of NSW/Anna Kucera)

Mr Fitzsimmons bristled at criticisms put to him by the inquiry that his staff treated the emergency as a typical nine-to-five job.

"We're not a 24-hour organisation, we don't have thousands of personnel, [but] we've been doing extraordinary hours and running after-hours arrangements," he said.

Today is the last day of the inquiry's scheduled hearings.

A report with recommendations is due to be handed down by August 9.

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