Regional mayors, agricultural industry leaders and Queensland’s peak body for councils have renewed their calls for the Federal Government to reinstate a crucial restocking allowance, following its shock cancellation last month.
Queensland councils fear the Commonwealth's rejection of the allowance is a sign of the times ahead – where Queensland will receive reduced Federal Government support in times of disaster.
It follows last week's announcement that the Federal Government plans to slash disaster recovery funding to the local government sector; and also follows the reduced baseline council funding as outlined in last month's Federal Budget.
The Local Government Association of Queensland (LGAQ) said Queensland councils are now facing a “triple whammy” of funding cuts, leaving communities more vulnerable to natural disasters which are already a grave threat to public safety.
“The decision not to fund a restocking allowance to help flood-ravaged producers get back on their feet has left producers, and the local communities and businesses they support, more vulnerable when natural disaster strikes,” LGAQ President Mayor Matt Burnett said.
“We’re calling for the urgent reinstatement of the restocking allowance, given the vital role it plays in putting food on the nation’s plates and supporting local economies.
“Every Queensland community deserves to be a liveable one, however cutting something as crucial as the restocking allowance will cripple the Queensland communities that consistently face floods, cyclones and other natural disasters.”
LGAQ CEO Alison Smith said the series of Federal Government funding cuts were pushing many councils to breaking point.
“The Federal Government’s plans to cut its funding under the Disaster Recovery Funding Arrangements is a dud deal for Queenslanders,” she said.
“This year, 74 of Queensland's 77 local government areas were disaster declared – that’s around 96 per cent of the state.
“We’ve looked at what this would mean if it was in place since 2013:
- more than $1 billion of betterment to rebuild critical roads, bridges and other infrastructure would not have been given to Queensland over the last 13 years.
- just 23 projects totalling $3 million would have been eligible under the new betterment criteria.
“The Commonwealth’s failure to fund the restocking allowance has also left many agricultural communities asking if they have a reliable partner in the Federal Government.
“These decisions, along with the failure of May’s Federal Budget to increase untied grant funding for councils to a just one per cent of national taxation revenue, will leave many councils on shaky financial ground.”
North West Queensland Regional Organisation of Councils Chair Etheridge Shire Mayor Barry Hughes said regional councils need continuity and security about what recovery looks like going forward.
“Minister McBain visited this community after it was flooded and spoke about hope and being there in our hour of need,” he said.
“But instead of having our back, they’ve turned their back on us when it comes to disaster recovery.
“Why have they gone down this path when we know rural communities are likely to face even more natural disasters in the future?”
Queensland Farmers’ Federation (QFF) CEO Jo Sheppard said the Federal Government must reconsider its proposed Disaster Recovery Funding Arrangements (DRFA) changes, noting that shifting to a 50/50 Federal-State split will disproportionately impact Queensland farmers and regional communities.
“Queensland is unfortunately Australia’s most disaster-impacted state, experiencing more than half of the nation’s natural disaster events and subsequent economic and social impacts,” Ms Sheppard said.
“This decision is beyond disappointing following a dismal budget for agriculture and regional communities, and the preceding decision not to support restocking for flood impacted farmers in North Queensland.”
“There is a real sense that the Federal Government are stepping away from our state’s primary producers when they are desperately needing support.”
AgForce CEO Niki Ford has called for the federal government to rethink its refusal to fund a restocking allowance for producers in the north.
"It's crucial that flood-affected producers be able to count on support from the Commonwealth as they work to rebuild the damage and losses on properties that help provide food and fuel for the country," she said.
"To refuse the application without explanation is a devastating blow for our community, many of whom are already struggling to cope with not just natural disasters, but fast rising costs for essentials like fuel and fertiliser."
The planned DRFA reforms will reduce the Commonwealth’s share in the cost of rebuilding public infrastructure and supporting local communities after disaster strikes to 50 per cent.
The State Government and councils would be left to cover the rest, which could cost communities hundreds of millions of dollars, putting cash-strapped councils under further financial pressure.