QLD:Floods will cost Qld: Fraser

AAP General News (Australia)
12-08-2010
QLD:Floods will cost Qld: Fraser

BRISBANE, Dec 8 AAP - Queensland's economic recovery will take a hit from wild weather
sweeping the state, Treasurer Andrew Fraser has warned.

Mr Fraser on Wednesday released updated figures showing last year's budget deficit
was lower than expected at $56 million.

He said the state's recovery was on track but warned it would be tempered by the costs
of bad weather, including the recent floods, which would have to be factored into the
mid-year budget review.

"There's no doubt that the floods will be expensive. They'll be expensive for the government
in terms of natural disaster relief payments to individuals, to communities, to councils,"

he told ABC radio.

"But they're also going to cost business a lot of money."

He said the impact of the recent flooding was a concern for the government, with many
mines resembling dams.

The treasurer said the lower than expected deficit for 2009-10 was good news.

"This is more than $230 million less than forecast at budget time," he said in a statement.

"This improved final result largely flows from a $200 million reduction in expenses
against budget."

He said about 80 per cent of the state was flood-declared at the start of 2010, causing
some delays in construction, with the capital outlays coming in at $16.6 billion for the
year.

"Our building program continues this year with the outlays representing delays in reaching
construction milestones - no projects have been cut and the program remains central to
our economic recovery," Mr Fraser said.

He said the Annual Economic Report 2009-10 showed how vital the state and federal governments'
building stimulus programs had been to the 2.3 per cent growth achieved last year.

"The fact is in the last financial year the only show in many towns was our building
program," he said.

Mr Fraser said the 2.3 per cent growth outcome was a solid result against the international
backdrop of the global financial crisis.

" ... the final result remains above the OECD average of 2.1 per cent for the last
two decades," he said.

The Report on State Finances, which included accounts signed off by the Auditor-General,
showed the long-term effects of the revenue wipeout from the 2008-09 State budget that
preceded the financial crisis, Mr Fraser said.

Stamp duty from property was down $1.4 billion, payroll tax was down $268 million,
gaming machine revenue was down $107 million and GST was down $785 million.

Royalties were also down $712 million.

But there was good news on the jobs front.

"Unemployment was forecast in the 2009-10 State budget to hit seven per cent this financial
year - today's report shows a final year-average result in 2009-10 of 5.7 per cent," he
said.

"Unemployment peaked at 6.0 per cent, below the forecast and today it sits at 5.5 per cent."

AAP tnf/dep

KEYWORD: ECONOMY QLD

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