Morrison Govt rejects $741m Queensland flood home buyback recovery package

The decision by the Federal Government not to split the cost of the $741 million package after deeming it a responsibility of the state has been slammed by Australia’s insurance peak body as “disappointing and shortsighted”.

Queensland will go it alone on a scheme to buy back flood-ravaged homes or build them back stronger after the Federal Government rejected a request to go halves in the cost.

The decision by the Federal Government not to split the cost of the $741 million package after deeming it a responsibility of the state has been slammed by Australia’s insurance peak body as “disappointing and shortsighted”.

The Queensland Government late last month asked its federal counterpart to go halves on a flood package worth $771 million — $30 million for the clean-up effort and the rest for a “resilient residential recovery program”.

It was meant to be the “biggest single disaster package” in Queensland’s history, with a focus on the “longer-term need to increase resilience” of homes against natural disasters.

But Prime Minister Scott Morrison on Tuesday night wrote to Premier Annastacia Palaszczuk to formally reject the package.

Prime Minister Scott Morrison. Picture: NCA NewsWire / Flavio Brancaleone

Mr Morrison, in his letter, said the additional programs proposed were important but were ultimately the responsibility of state and local governments.

He confirmed the Federal Government would tip in half the cash for the $30 million clean-up effort, and agreed to spend about $33 million on a State Government wish list of resilience projects, including a levee in Mackay and a new bridge in the Scenic Rim.

The Federal Government said it was also working on the guidelines of a $100 million “Preparing Australia Homes” grant scheme, similar to Queensland’s package.

Acting Premier and Treasurer Cameron Dick slammed the rejection as the “highest level of disrespect” for Queenslanders, and said Mr Morrison had made a “political calculation” that he didn’t need the votes of flood victims.

New South Wales’ request for the Federal Government to go halves on cash handout scheme to help uninsured flood victims was also rejected after being deemed ultimately a state responsibility.

Mr Morrison, pressed on the issue while on the hustings in New South Wales, accused the Queensland Government of “politicking”.

Rocklea residential housing his by the floods. Picture: Liam Kidston

“(The proposed recovery package) are all Queensland responsibilities and we think they should do that … I don’t think people are that interested in the politicking between state government having a crack at the Federal Government when it comes to the flood response,” he said.

The State Government confirmed it had already approved $385.5 million — taken from consolidated revenue — for the residential recovery project, and would move forward without federal cash.

“We will continue with the program, we’ll have to reconsider what we can do but it just won’t go as far and that’s the real, the real crying shame of this,” Mr Dick said.

Queensland’s total flood funding contribution has thus grown to $682 million, with the Federal Government putting in $632 million.

Insurance Council of Australia chief executive Andrew Hall said the Federal Government’s failure to match Queensland’s investment was “disappointing and shortsighted”.

“Australians – particularly those still impacted by the ongoing rain and flooding – want governments to come together to provide better protections against worsening extreme weather, not wash their hands of responsibility,” he said.

The big clean up continues in Windsor on March 3. Picture: John Gass

Originally published as Morrison Govt rejects $741m Queensland flood home buyback recovery package