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Gayndah water pump station is being rebuilt on higher ground after being destroyed twice in two years but many more flood-proofing projects will need cash. |
QUEENSLAND households face a new levy to fund hundreds of expensive flood-proofing projects.
The Courier-Mail can reveal the Newman Government is preparing plans for a levy and a dedicated flood projects fund which will be unveiled in next month's State Budget.
About $1 billion would be raised over four or five years through the extra charge on common household bills, such as electricity, rates or water.
It would be used to fund new levees and dams and move vital infrastructure to higher ground to prevent taxpayers being hit repeatedly with repair bills after each disaster.
The news could not come at a worse time for households which are set to be stung with a $300 increase to the average annual electricity bill, $54 extra for bulk water costs in the southeast and a hike in the federal Medicare levy to pay for the National Disability Insurance Scheme.
Local Government Minister David Crisafulli yesterday confirmed a levy was being considered as the LNP administration grappled with how to fund infrastructure prone to flood.
"For a bit of short-term pain there could be generations of long-term gain," he said.
The controversial decision comes despite the LNP promising to lower the cost of living at last year's election and rallying against similar imposts, such as the ambulance levy, while they were in Opposition.
The Courier-Mail can reveal the Newman Government is preparing plans for a levy and a dedicated flood projects fund which will be unveiled in next month's State Budget.
About $1 billion would be raised over four or five years through the extra charge on common household bills, such as electricity, rates or water.
It would be used to fund new levees and dams and move vital infrastructure to higher ground to prevent taxpayers being hit repeatedly with repair bills after each disaster.
The news could not come at a worse time for households which are set to be stung with a $300 increase to the average annual electricity bill, $54 extra for bulk water costs in the southeast and a hike in the federal Medicare levy to pay for the National Disability Insurance Scheme.
Local Government Minister David Crisafulli yesterday confirmed a levy was being considered as the LNP administration grappled with how to fund infrastructure prone to flood.
"For a bit of short-term pain there could be generations of long-term gain," he said.
The controversial decision comes despite the LNP promising to lower the cost of living at last year's election and rallying against similar imposts, such as the ambulance levy, while they were in Opposition.
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| Premier Campbell Newman talks to locals in Gayndah during the floods earlier this year. |
However, the Department of Local Government has found itself inundated with funding applications for flood-proofing projects.
More than $950 million worth of proposals to protect infrastructure from future floods has been received from 48 councils.
However, only $80 million has been set aside in a joint state/federal fund for "betterment projects".
These include projects such as the Gayndah water pump station, the first project confirmed for funding, which will be rebuilt on higher ground after being destroyed twice in two years.
With a massive decline in forecast revenue set to nearly double next year's fiscal deficit to more than $8 billion, the Newman Government is not in a position to pay for the massive shortfall.
The Government also faces an unexpected cost of $725 million with the Gillard Government refusing to reimburse the state for council projects completed after the 2011 disasters which did not meet disaster payment guidelines.
Mr Crisafulli conceded households were struggling under the weight of bill increases but the community also did not want to repeatedly pay to replace the same flood-prone infrastructure.
"No matter which way we look at this I don't doubt for one moment that people will look at the cost and I understand and respect that," he said. "But the argument I put forward is we can save ourselves money in the future if we do this properly."
Mr Crisafulli said the levy would have its own fund away from consolidated revenue and an end date.
"I am not talking about something that goes into consolidated revenue or lasts in perpetuity," he said.
"I am talking about a levy that goes into a separate fund for disaster recovery, disaster betterment as part of that recovery and resilience to reduce your future payouts.
"To me it is something we should look at doing over a five-year period and collect about $1 billion. I think that would make a good start."
However, the Department of Local Government has found itself inundated with funding applications for flood-proofing projects.
More than $950 million worth of proposals to protect infrastructure from future floods has been received from 48 councils.
However, only $80 million has been set aside in a joint state/federal fund for "betterment projects".
These include projects such as the Gayndah water pump station, the first project confirmed for funding, which will be rebuilt on higher ground after being destroyed twice in two years.
With a massive decline in forecast revenue set to nearly double next year's fiscal deficit to more than $8 billion, the Newman Government is not in a position to pay for the massive shortfall.
The Government also faces an unexpected cost of $725 million with the Gillard Government refusing to reimburse the state for council projects completed after the 2011 disasters which did not meet disaster payment guidelines.
Mr Crisafulli conceded households were struggling under the weight of bill increases but the community also did not want to repeatedly pay to replace the same flood-prone infrastructure.
"No matter which way we look at this I don't doubt for one moment that people will look at the cost and I understand and respect that," he said. "But the argument I put forward is we can save ourselves money in the future if we do this properly."
Mr Crisafulli said the levy would have its own fund away from consolidated revenue and an end date.
"I am not talking about something that goes into consolidated revenue or lasts in perpetuity," he said.
"I am talking about a levy that goes into a separate fund for disaster recovery, disaster betterment as part of that recovery and resilience to reduce your future payouts.
"To me it is something we should look at doing over a five-year period and collect about $1 billion. I think that would make a good start."
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