Mark Furner (Queensland, Australian Labor Party) Share this | Hansard source

Mr Abbott, Mr Hockey and Mr Robb. In fact, it was 24.1 per cent in 2004-05 and 2005-06. This levy is only a small fraction of—to be more precise, 10 times less than—the tax cuts Australians have already received from the Labor government. That is because we are committed to ensuring our working Australians are better off. In our last three budgets, we have provided tax cuts to individuals, and our tax reforms have reduced income tax, small business tax, superannuation tax and tax on savings. We will have done all this—provided stimulus packages to keep people employed and built much needed infrastructure for our future generations—while still managing to get the budget back into surplus in a couple of years. This shows our strong economic management compared to the opposition’s election promises, which Treasury found to have an $11 billion black hole. Let us not forget that: it was an $11 billion black hole.

While we will raise $1.8 billion from the levy, savings from the budget will make up the rest of the $5.6 billion to rebuild flood affected areas. Yes, we have made tough decisions, but we have had to do so, and I commend Prime Minister Julia Gillard and Deputy Prime Minister Wayne Swan for their leadership and decisiveness in ensuring Queensland and Victoria will have vital infrastructure rebuilt. The ability to make tough decisions is exactly what a leader needs and something the coalition lacks.

Senator Xenophon said he may not support this legislation unless the states take out natural disaster insurance. I understand that the Queensland Treasurer is currently seeking quotes to test the market and to ensure that coverage includes roads. However, state Treasurer Andrew Fraser said most state insurers do not include roads in their coverage and that Queensland differed from other states due to its large size. He said:

… getting reinsurance coverage for Queensland is an entirely different proposition than it is for any other state.

Our state is prone to natural disasters, and the decentralised nature of our population means we have many government buildings and major roads spread across vast areas.

Queensland government Under Treasurer Gerard Bradley told the House of Representatives Standing Committee on Economics on 16 February that the Queensland government had looked at reinsurance for major events; however, they found that it would not be value for money. He said:

We looked at the case of the Queensland Government Insurance Fund and looked at the availability of reinsurance to cover major events. We sought reinsurance advice from our broking advisers and we did take that to the international insurance industry. But the costing of that and the risk provisions that they proposed did not represent value for money for the state in terms of the deductions for events and the exposures they were willing to cover. They did not, for example, cover natural disaster.

Mr Bradley stated that roads were not covered in other states’ insurance policies, and the fact that 80 per cent of the cost of this natural disaster is for road infrastructure, he believed, meant that:

… the availability and cost of seeking reinsurance for that infrastructure would be a major challenge.

So even if the state government had taken out insurance, we would still be in the same situation we are in now. We would still be here in this chamber looking for funds to pay for the roads—vital infrastructure needed for Queenslanders to get to work and school and needed to help businesses to conduct their daily operations.

The Sydney Morning Herald reported on 22 February that Anna Bligh said the last time the state government looked into reinsurance was in 2004. The story stated it ‘was offered a policy of more than a couple of hundred million dollars that did not cover roads and was therefore not good value’. A couple of hundred million dollars seems like a lot of taxpayer funds to pay for a policy which did not insure for the cost of this natural disaster.

On 23 February, the Brisbane Times reported that a University of Queensland professor supported the state government’s view that insurance would be hard to obtain. Professor John Quiggan said:

It’s also going to be difficult to get agreed opinion on assessments of damage (after disasters) …

It’s difficult enough for an individual ... there would be much bigger difficulties for the state … There are few companies big enough and expert enough.

Professor Tim Robinson from the Queensland University of Technology said he could see problems with getting insurance. He said:

The risk with insuring in the private sector is ... what’s to say an insurer wouldn’t go into liquidation and be unable to meet the claims the government was making?

Another heartbreaking tale I discovered while door-knocking in Brisbane and Longman was that some of those who were inundated by the floods were not covered by their insurance companies. Some policies covered clients for flash flooding from a storm but not flooding from a river. This is why it is important there is a standard definition for flood cover.

I am also fed up with the scaremongering the opposition are basing their arguments on. This levy will not stop people from donating or raising funds. Even as we speak, there are fundraising activities happening all over Queensland. On Sunday I attended the Family Fun Day fundraiser at the Caboolture Neighbourhood Centre. This Saturday I will be attending another fundraiser that the Ethnic Communities Council of Queensland is having for flood victims. We also had the fantastic fundraiser at Club Pine Rivers in January which raised more than $25,000 for the Premier’s disaster relief appeal. These two events occurred even after the flood levy was announced.

I think the opposition has underestimated the compassion that Australians have for their fellow countrymen and women. Volunteers came out in masses to help fellow Queenslanders in the days after the floods. When the water levels had receded and people were able to gain access to their homes not only did they have to sort through belongings but also they were greeted with layers of mud. But because of the Australian spirit, strangers pitched in and helped those who had been affected. It is our nature. Everyone lends a helping hand, and that is exactly what the nature of this levy is. For less than the cost of a cup of coffee, we can help rebuild much-needed infrastructure which was destroyed in this natural disaster. In fact, the member for Blair said last week that more than 85 per cent of people will pay less than $5 a week and half of all taxpayers will not have to pay the levy at all.

In conclusion, I believe it is important that the opposition puts aside politics and votes for this important piece of legislation to allow Queenslanders and Victorians to get their lives back on track. In a plea from Queensland, Premier Anna Bligh said:

I think it would be a great pity if every Queensland Senator, regardless of their politics or their background didn’t support the flood levy … Sometimes it’s important to put politics aside and put people first, and (I say to) Queensland Senators let’s put Queensland first.

I commend the bills to the Senate.