Understanding Climate Risk

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Archive for January 28th, 2011

After the floods – reactive vs planned responses

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Prime Minister Julia Gillard has proposed a flood levy and spending cuts and deferrals to help pay the bill for the recent Queensland floods. Referring to it as “a natural disaster of unprecedented proportions”, she is now on the road to persuade others in government, industry and the community to back her plan.

It’s worth having a closer look at, with details here and here .

It comprises:

  • $2.8 billion in spending cuts, including removing industry assistance and cutting back other green programs by abolishing the Green Car Innovation Fund and the Cleaner Car Rebate Scheme and making other cuts.
  • $1 billion in delaying some infrastructure projects– which will free up funds and skilled workers at a time of skilled labour shortages around the country.
  • $1.8 billion through a progressive levy on people earning over $50,000. This will only apply to income above the $50,000 threshold. Anyone directly affected by the floods will not have to pay the levy at all.

I’m not arguing against the levy or the scheme in total, but feel that the current approach is reactive and not strategic. My position is that we are facing a long-term issue rather than just recovering from a short-term disaster.

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Written by Roger Jones

January 28, 2011 at 12:32 pm