Federal Budget 2016: Disaster funds delay ‘outrageous’, says Deputy Premier

NATURAL disaster funding totalling $1 billion has been withheld by two years in a Budget decision the State Government says leaves an unexpected hole in its coffers.

NATURAL disaster funding totalling $1 billion has been withheld by two years in a hidden Budget decision the State Government says leaves an unexpected hole in its coffers.

Deputy Premier Jackie Trad last night attacked the “outrageous delay” as the Budget gem was uncovered in a Senate Budget Estimates grilling.

But the Turnbull Government hit back, saying it had to properly audit the state’s claim in case it was trying to pull a swifty on federal taxpayers.

OPINION: Governement passing the buck on disaster relief

Ms Trad said the Commonwealth had been set to reimburse the state the money after the Palaszczuk Government already paid out councils for urgent rebuild work.

Under the Natural Disaster Relief and Recovery Arrangements, the Commonwealth pays up to 75 per cent of funding required to respond to natural disasters.

“This outrageous delay for spurious reasons undermines confidence in the entire NDRRA and could mean ­delays to reconstruction after ­future natural disaster events,” the Deputy Premier said.

Ms Trad said Queensland had put in paperwork early and the money had been set aside in the Mid-Year Economic Outlook published in December.

But a spokeswoman for Justice Minister Michael Keenan, who is responsible for the scheme, said while the money was still budgeted for, the Government had to complete an audit of the funds first.

Deputy Premier Jackie Trad says the funding setback could mean delays to reconstruction after ­future natural disaster events.

That was because an Australian National Audit Office report found the department had placed too much trust in states in the past, resulting in millions of ineligible spending being claimed, she said.

A reimbursement in 2009-12 had to be reduced by $115 million after a Queensland Audit Office re-audit of NDRRA claims, she said.

“This assurance program will not be completed before the end of this financial year, so we have placed the funds over the next two financial years to ensure the funds are still available to Queensland when the assurance process is complete,” she said.

Originally published as Federal Budget 2016: Disaster funds delay ‘outrageous’, says Deputy Premier