Media Statements

Canberra holds back on disaster relief

Treasurer and Minister for Trade
The Honourable Tim Nicholls

Thursday, April 18, 2013

Canberra holds back on disaster relief

Treasurer and Minister for Trade Tim Nicholls is writing once more to Federal Treasurer Wayne Swan in an attempt to get Canberra to release $725 million in disaster relief funds owed to Queensland.

Queensland has been negotiating with the Commonwealth for months over the funds from the Natural Disaster Relief and Recovery Arrangements.

“This $725 million relates to disasters that have occurred in Queensland since 2009 and it’s already been budgeted for in Wayne Swan’s forward estimates but it hasn’t been handed over,” Mr Nicholls said.

“The argument is that the paperwork doesn’t meet the Commonwealth’s audit standards which were only introduced in 2011.

“Now we support accountability in the spending of public funds, but expecting that councils with thousands of kilometres of roads have a pre-flood photo of every culvert, causeway and street sign is ludicrous.

“Similarly, people lining up for hardship payments because they’ve lost everything probably aren’t carrying around photos and bags full of receipts to prove ownership of everything that’s washed away.

“This shouldn’t be about the paperwork.  This should be about helping Queenslanders get back on their feet.”

Mr Nicholls said natural disasters had cost Queensland $14.5 billion since 2009 and the Commonwealth’s decision not to release $725 million in relief payments was having a significant impact on Queensland.

“Today I’ve called on the Leader of the Opposition to co-sign a letter with the Premier urging the Prime Minister to reconsider Wayne Swan’s decision,” he said.

“Queenslanders have suffered enough in recent years and they shouldn’t have to beg for the money that the Commonwealth has already committed to relief and reconstruction.

“This Government will continue to stand up for Queenslanders and make sure Canberra meets its obligations in helping disaster hit communities.”

[ENDS] 18 April 2013

The Australian is carrying this report this afternoon:

TREASURER Wayne Swan is refusing to pay more than $700 million in flood recovery money owed to Queensland, the state government says.

Queensland Treasurer Tim Nicholls says under a joint agreement, the federal government said it would reimburse the state for money spent on disaster relief and recovery arrangements.

Mr Nicholls says the state spent $725 million on personal assistance and grants to local governments to rebuild damaged infrastructure.

It now wants the money from the Commonwealth.

"Wayne Swan is refusing to pay Queenslanders this money even though it's allocated in his forward estimates," Mr Nicholls told state parliament on Thursday.

He says he has been negotiating with the federal government for three months to resolve the issue.

"Yesterday we were bluntly told by the federal treasury they will not be paying the $725 million," Mr Nicholls said.

"This is money that the federal government imposed a levy on every single Australian to pay the bill.

"This is not their money. They are transferring it to their bottom line."