Saturday, February 05, 2011

Flood Levy or Flood Levee?

Following the devastating floods in Queensland, Victoria and even Carnarvon in Western Australia, PM Julia Gillard has said that we must have a flood levy. No if, buts or maybes. Must have. The Australian taxpayer is to fork out for the repair to infrastructure, mainly in Queensland, and I'm presuming if that is even state property. I've got no issue with Federal property being repaired with Federal money but state property should be fixed by the state in question.

Gillard's plan is to introduce a flood levy whereby people who weren't affected by the flood and who earn over $50k per year will be hit on a sliding scale for somewhere between $1 and $5 per week. There's a few more details here. Doesn't sound like much, does it. Considering that 60% of Australians will pay less than $1/week it sounds to me like another tax on the rich. Typical Labor Party tactic. Do they not think that "rich" people are already mortgaged to the hilt, along with those in the mortgage belt, and that they have plenty of excess money to give away?

There's a few things that irk me here. No consideration is given to those that have donated already and should be exempt to the extent that they have already given. If you have a greater income you will pay a higher share. The State's responsibilities are somewhat overlooked and the Federal government will be bailing them out (which is perhaps okay given the sheer size of the devastation). Where is the claim against town planners who allowed people to build on river flood plains? People that didn't have insurance shouldn't be bailed out as this sends the wrong message. The younger generation is likely to think that the government will bail them out. If you can't afford car insurance when you buy a car you can't afford the car in my book. And Australia should just borrow the money to rebuild infrastructure instead of worrying about getting the budget back into surplus. Hell, they'll only be taking $1.8b from the taxpayer due to the flood levy. Still has to get through parliament though.

Man, I think that it should be a flood levee instead. Pay to build a mound of earth around these rivers and that would be a better way to spend the money. Just rebuilding in the same place is stupid and very short sighted. Heck, why not send the useless and unwanted buildings for schools that wasted some $20b to Queensland and be done with it.

On the other hand we should be helping out a mate in the old banana bender. Now is a wonderful way of creating a purpose built infrastructure but nobody has that far-sighted vision. It'll be pretty much a straight replacement and no improvement. Much like Julia Gillard was for Kevin Rudd.


Anonymous said...

The rich most likely will have to pay more and yes they have high bills for the houses plus such. The poor cannot afford it at all. Don't let a New Orleans America happen. They will just have to compromise first or they will lose it all.

Iris Flavia said...

It´s the same over here. People clean up and stay... Really, really dumb.