Queensland Cyclone Debbie: Economic impact

QUEENSLAND coal exports may have taken a $1.5 billion hit from Cyclone Debbie as more than 22 mines were stopped while roads and ports were shut.

QUEENSLAND coal exports may have taken a $1.5 billion hit from Cyclone Debbie as more than 22 mines were forced to halt production while roads and ports were shut.

Economists also tip a hit to the state Budget, with a temporary loss of coal royalties and lost agricultural production. But they also warn that negative talk about the impact on resorts could hurt tourism operators unaffected by the weather.

Energy analysts IHS said about 10 million tonnes of coal production was lost as buyers went elsewhere.

Mines will also be affected by impassable roads and flooded pits, but the losses aren’t expected to be anywhere near those incurred by Cyclone Yasi, when about 40 million tonnes of production was lost.

Economist and former Chamber of Commerce and Industry executive Nick Behrens said the economic impact would be substantial for the State Government.

He said Treasury did have a buffer from increased GST grants from the Federal Government, as well as extra coal royalties from the dramatic price increase last year, but the significant damage bill and the need to rebuild key infrastructure would come at a cost.

“It was a big hit to the Budget in 2011-12, and likewise, it will be again in 2017-18,’’ Mr Behrens said.

Cyclone Yasi cost the State Government about $2.9 billion, while councils paid about $2.7 billion to replace damaged assets.

“Unfortunately, Queensland cyclones leave devastating and heartbreaking images on the minds of millions. The news coverage and graphic vision of the destruction turns physical damage into financial damage for tourism,’’ Mr Behrens said.

Premier Annastacia Palaszczuk warned it would take months to rebuild. She said she told Treasurer Curtis Pitt to deliver a message to insurers to ensure they treat cyclone-hit communities with respect.

“First and foremost, we want people to be treated as people, as human beings,’’ Ms Palaszczuk said.