QUEENSLAND has dramatically increased its estimate of the damage done by the January floods and cyclone adding another $1 billion to the budgeted rebuilding cost.   

The Treasurer, Andrew Fraser, says he will build next Tuesday's budget around a $6.8 billion reconstruction bill, three-quarters of which will be met by the Commonwealth.

"There has also been enormous damage to infrastructure and significant costs incurred in managing the response," he said yesterday.   


''The increase was largely due to new estimates from councils who now believe they will need more than $2.7 billion to undertake repairs - $900 million more than their initial forecast.

''Such a big bill underlines the enormity of the task ahead.''

The May budget already factored in a worse than originally anticipated recovery bill, meaning the upgraded Queensland forecast should not affect the federal budget.

The federal Treasurer, Wayne Swan, said yesterday ''all up'' he believed the disasters and those in Japan and New Zealand would cost the economy about $12 billion, up from an earlier estimate of $9 billion. Lost mineral exports alone would cost $9 billion and damage to crops more than $2 billion.   

Mr Fraser said the extra reconstruction costs placed pressure on his own budget. The government would redirect some of the proceeds of the privatisation of its $1.83 billion Abbot Point Coal Terminal to help meet the costs.

Yes Cods, a good idea.  They may have to do that.