Concerns are growing that Eugowra residents will start returning to their flood damaged homes before they are safe because there is "nowhere else to go."
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Tony Toohey lives in the Central West town which was decimated by flood waters on November 14 and feared that if funding wasn't secured for housing, then the town may soon die off.
"We need the people to stay in town," he said.
"What I've heard from council and from others is we need to get them liveable homes and keep the people here so they can continue to shop and still use the services. If they move away and go to Forbes, Parkes, Orange or wherever, they may never come back."
Speaking on Tuesday to Federal Member for Calare, Andrew Gee, Mr Toohey said people were already starting to go back and live in their homes which had been destroyed by the flood.
These fears were also held by Mr Gee.
"What I think is going to happen is there are buildings here that are essentially shells and people, because they have nowhere else to go, they're going to start going back into them because they are their homes," he said.
"As a nation, we should be able to provide them with longer term accommodation."
One idea which he said had been proposed to government was to turn the Eugowra Showground into a temporary "small village."
"The basic infrastructure has all been destroyed. It's hard to comprehend until you see it," Mr Gee added.
"I've spoken to builders who are working on it and what a lot of people want to see are these transportable, modular homes. They are modern, new, transportable homes that can be put together. I think that would be a good interim solution, if not a longer term solution for folks.
"It's in its early stages, but I was reassured by the fact that those conversations are happening."
In the time that Mr Gee has spent in Eugowra since the floods, he has gained the sense that those in the community wanted to remain in the town.
"We have to do everything we can to facilitate that," he added.
Prime Minister Anthony Albanese and NSW Premier Dominic Perrottet were in Eugowra on Tuesday, where it was announced that small businesses and not-for-profit organisations affected by ongoing flooding could now apply for recovery grants of up to $50,000.
While Mr Gee said this was a good start, he noted there would need to be a "ramp-up of support" going forward.
"There are people here who have lost absolutely everything and are going to be left with shells of homes and a house block and they've got no money to rebuild," he added.
"A number of residents are still struggling to find funds to pay for the basic necessities of life. There's going to have to be more help coming. There's going to have to be more funding ramped up otherwise people won't survive."
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