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The mayor of a Hawke's Bay town says it's a disgrace that funding from a special Lotto draw after Cyclone Gabrielle, hasn't yet been allocated.

The special draw raised more than $11-million.

The Department of Internal Affairs expects some action this month.

Wairoa mayor Craig Little told Tim Dower that the money would go a long way.

He says there are people suffering, have lost their homes and essentially living in a third world country in Wairoa they've lost everything.

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