Cyclone Debbie wreaked economic havoc on Queensland

TREASURER Curtis Pitt ­estimates $2 billion in economic losses to the state from Cyclone Debbie, while the damage bill from the cyclone is expected to top $1.5 billion.

TREASURER Curtis Pitt ­estimates $2 billion in economic losses to the state from Cyclone Debbie, while the damage bill from the cyclone is expected to top $1.5 billion.

The state is still tallying the costs, but Mr Pitt yesterday revealed the latest estimates ahead of the final cost being revealed in the Budget, due to be handed down on June 13.

He said that the damage bill from the cyclone would probably be similar to that from Cyclone Oswald in 2013.

Of the estimated $1.5 billion damage bill, Mr Pitt said he hoped the state would recoup up to $1 billion from the Commonwealth under the National Disaster Relief and Recovery Arrangements. But that cash would still need to be paid upfront by Queensland taxpayers.

“In comparison with the total cost of Natural Disaster Relief and Recovery Arrangements in terms of spending that was against Tropical Cyclone Oswald, well that was around $1.5 billion and Cyclone Debbie is likely to be on a similar scale,” he said. “This is the potential total cost. Once NDRRA arrangements with the Commonwealth are taken into account, the net cost to Queensland could be around $500 million.

A property smashed by Cyclone Debbie at Wilson Beach in the Whitsunday. Picture: Wesley Monts

“The June State Budget ... is also going to contain an estimate of Cyclone Debbie’s impact on forecast economic growth resulting in economic losses estimated at approximately $2 billion.”

Mr Pitt said those losses included coal, tourism and agricultural sector losses.

“Estimated economic losses include coal exports with the loss of net tonnage contributing to a loss of around $1.5 billion,” he said. “Other economic impacts include losses for Whitsunday tourism, equivalent to two to three months of activity with an estimated value of between $120 million and $180 million … Cane growers’ preliminary estimate is for losses of around $150 million; horticulture and crop losses could be around $120 million.”

But Mr Pitt said his promised surplus in the June Budget would be delivered.