By Amy Coopes (AFP) – 1 hour ago

SYDNEY — Australian Prime Minister Julia Gillard on Thursday introduced contentious legislation for a one-off tax to help pay for devastating floods which killed 35 people and swamped thousands of homes.

The flood levy, to apply to middle and higher income earners, is expected to raise some Aus$1.8 billion of the Aus$5.6 billion needed for reconstruction after record deluges engulfed vast parts of mining and farming state Queensland.

Roads, railways and bridges were destroyed by the torrent, which killed dozens of people and brought the coal mining industry to a standstill. It is expected to cut 0.5 percentage points off economic growth in the current fiscal year.

But Labor leader Gillard's one-seat majority may be tested by the legislation, as the conservative opposition favours budget cuts including slashing foreign aid to pay for the damage. Key independents have also raised objections.

Gillard told parliament rebuilding would be one of the largest peacetime infrastructure projects ever undertaken by an Australian government and the levy was "an expression of goodwill" to the victims.

"I understand that Australians are under cost of living pressure, I understand that," the prime minister said.

"But understanding those cost of living pressures we also believe it is right, at a time that the nation faces the kind of challenges we see from the summer of disaster that we've just lived through, to ask Australians to make a contribution too."

Out of six cross-benchers, only Queensland independent Bob Katter, who refused to support Gillard in forming a government after last year's election deadlock, said he would back the levy.

"They've got me boxed in, haven't they? I mean, we've had colossal losses," the colourful Katter said. "Our situation is depressing, dismal and disastrous at the present moment."

Australia has previously used one-off levies to fund a gun buyback after a 1996 massacre in Tasmania, to protect staff entitlements after the 2001 collapse of airline Ansett, and to support the dairy and sugar industries.

Flood victims and those hit by last week's monster cyclone which tore across the northeast coast are exempt from the flood tax, which will only apply in the 2011-12 year and will be voted on in a few weeks.

"The package that I have outlined as prime minister is the right package for this nation," said Gillard, urging the opposition to put aside "petty politicking".

"We are facing a national disaster, it's a national challenge and it's a national responsibility."

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http://www.google.com/hostednews/afp/article/ALeqM5irfXM4kaLq8aP2RJYCF3454X8fCw?...

Verge wrote on Feb 10^th, 2011 at 4:34pm:




well probably because it happened today and not last week..lol.

anyway I see on tonights news Alan Wilkie says the govt has unlimited funds it can draw on for the Qld flood..

so it strikes me as this levy is more about making Labor look good with a surplus..after all it was a knee jerk plot as per usual and then she brings in the big guns from the Libs to make sure none of those nasties that ripped off all their other programs come out and bite them again...

although isnt she still denying that happened?.. I dont know anymore.

more twists and turns than "Days of our Lives"

http://www.dailytelegraph.com.au/news/opinion/taxpayers-foot-the-bill-for-queenslands-incompetence/story-e6frezz0-1226000698050

Sources within the Queensland Government say the failure to take out insurance cover is symptomatic of its financial mismanagement.

They claim the Queensland Government arranges insurance for all infrastructure as it is being built, but ceases insuring it when construction is completed.

Treasurer Fraser offers the weak excuse that insurance would cost too much and is not necessary because of natural-disaster relief arrangements made with the Federal Government.

But there's nothing special about the disaster relief arrangements - they apply to every state, and every other state also takes out insurance.

Further, the arrangements are just that - arrangements, not agreements. They're ad hoc, and rely on the Federal Government to initiate them.

If the Queensland Government had managed its insurance program responsibly, it would gave been able to re-insure and aggregate its risk insurance, thus accessing lower-cost insurance.

Instead, it is relying on an arrangement that may or may not be agreed when it is needed.

Queensland's credit rating has been downgraded, and this financial mismanagement increases its fiscal volatility, thus increasing the financial risk and increasing the likelihood of a further review of Queensland's credit rating.

It is not in the Federal Government's interest to point this out, as Queensland Premier Anna Bligh has become the new Labor poster girl through her tireless appearances as the nation's newest emergency services and weather spokesperson.

Although her media performances have dazzled some star-struck commentators always on the hunt for the latest Labor messiah, the hard questions have not been asked.

Bligh or her Treasurer must tell the nation what quotes the Queensland Government has received from the insurance market, when they were received and whether the Government has reviewed them recently.

Australians also need to know how much more they will be paying to meet the costs associated with damaged, uninsured government infrastructure in Queensland, as compared with the costs of damaged but insured government infrastructure in Victoria.

It is ridiculously arrogant for federal Infrastructure Minister Anthony Albanese to declare that it is none of our business when he and his leader have been so quick to publicly display their generosity towards Queensland with our money without these basic questions being answered.

The admirable speed with which Gillard assured Queenslanders that their damage costs would be met reeks of political opportunism.

beware wrote on Feb 10^th, 2011 at 6:27pm:




precisely even the fund raised money is going to those who didnt insure first... seems to me its all wrong and one sided...

I dont begrudge anyone anything but really to punish those that insure and bend over backwards and then make them pay a second time with a levy.. plus when they get their new insurance forms it will have an added cost to it.. isnt in my book.. FAIR..

and as for making the public only the selected few pay for something that the Qld govt is responsible for through sheer bloody bad management stinks..

and most Qldrs wont be asked to contribute... what the hell is going on.

I am a pensioner and struggle to pay bills and eat.. yet I insure my own property I go without other things to do so... whats with a GOVT that doesnt see fit to so the same.

Seeing that many suburbs flooded in Brisbane would have been below the 100 year flood level I doubt that they would have been offered insurance or if they were it would have come at a high price.

However.....they would have known that it was below the 100 year flood and were therefore NOT protected by their Government and building rules or they were just outrightly dumb and believed that it could not flood again!!

Surely a Queenslander knows that parts of Brisbane and  the state have always flooded....SURELY THEY DID NOT BELIEVE THE GREENS AND SUCH that it would never happen again!!

What worries me is that where I live the river has not flooded since  about 1990. In that year we had 3/4 massive floods because they had to let water out of Warragamba Dam .

So what if we have to pay for the cost of QLD...... will we have to pay again and again!!

Did I see a QLD registration plate called ....

     THE SMART STATE


Surely I did not read that!!LOL

http://au.news.yahoo.com/thewest/a/-/breaking/8816234/flash-flood-hits-warburton/



An inland wave hit the remote community of Warburton yesterday, damaging about 15 homes.
Heavy rain caused a flash flood that forced authorities to evacuate 60 residents from their homes in the town, 920km north east of Kalgoorlie.
Two people were rescued from a four-wheel-drive vehicle stranded in water up to its windows in the main street, as water up to 2m deep flowed through town.
There were no reports of major injuries.
Local worker Mike Harper said the main road past the town had turned into a river.
"The water was so strong, it came out of nowhere," he said. "I spoke to one bloke in town who said about two feet of water had flowed through his home."
The Weather Bureau said 88mm of rain fell in the town in 11 hours from 9am yesterday.
Warburton has a population of about 500.

Flash flood hits WarburtonNICK SAS, The West Australian
February 11, 2011, 5:32 am
Thats YESTERDAY as in YESTERDAY