TASMANIAN Premier Lara Giddings says her government will spend whatever is needed to get bushfire-ravaged towns back on their feet.
Ms Giddings on Tuesday announced an interim committee to plan the state's recovery from the bushfires, which have destroyed at least 128 homes, mainly on the Tasman Peninsula.
The damage to private property is currently estimated to be at least $42 million, but that figure is set to rise exponentially.
Ms Giddings, who is also treasurer, said her government was prepared to fund the recovery, despite the fact the state is headed for a $268 million deficit this financial year.
"Obviously this is going to have some impact on the budget, we are not going to be able to avoid those costs," she told reporters in Hobart on Tuesday.
"When you have a crisis of this nature, you must get in there and deal with it with the resources that are required and that's exactly what is happening.
"There are costs across the board, but they are costs that we must and will continue to spend to do what's needed and what's required for communities in crisis."
The interim committee will be made up of Ms Giddings, Deputy Premier Bryan Green, Emergency Services Minister David O'Byrne, Acting-Commissioner of Police Scott Tilyard, and Secretary of the Department of Premier and Cabinet Rhys Edwards.
The committee will appoint a recovery taskforce with a full-time chair.
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