Swan denies withholding disaster funds

4 Feb 2013, 8:41 pm   -   Source: AAP
Authorities have so far assessed 3670 flood-damaged houses in Bundaberg, with 38 houses rated as unliveable. (AAP)

Authorities have so far assessed 3670 flood-damaged houses in Bundaberg, with 38 houses rated as unliveable. (AAP)

Federal Treasurer Wayne Swan says claims that flood disaster recovery funds are being withheld from Queensland are "entirely incorrect.

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Federal Treasurer Wayne Swan says claims by Queensland that flood disaster recovery funds are being withheld by the commonwealth are completely wrong.

State Treasurer Tim Nicholls said on Monday the commonwealth is holding up $725 million worth of Natural Disaster Relief and Recovery Arrangements (NDRRA) payments by demanding unreasonable levels of proof that repairs have been carried out.

He said councils had been asked for pre-disaster, post-disaster and post-recovery photos of assets damaged in disasters dating back to 2006.

But Mr Swan says the disputed funds have in fact already been paid to Queensland in advance.

In a letter in response to Mr Nicholls, he has said the claim that Commonwealth funds have been withheld is "entirely incorrect".

"Advance payments were made by the commonwealth to assist Queensland with cash flow and make sure that reconstruction works were able to be done as quickly as possible," he has written.

"As you're aware advance payments of this nature are unusual, but the commonwealth government agreed to make payments early to Queensland because of the magnitude of the disaster, with the undertaking that the state government would provide proper documentary evidence following reconstruction."

Mr Swan said the commonwealth was now following up on the administrative paperwork required to finalise the claims in question and "acquit them against the funds already paid".

Comment has been sought from Mr Nicholls.

Premier Campbell Newman wants the commonwealth to change the way NDRRA funds are allocated.

Currently only like-for-like reconstruction is eligible for the cash, which is 75 per cent supplied by the federal government and 25 per cent by the state.

Mr Newman says it's time to build smarter in flood-prone areas, so the same old roads and same old bridges don't need the same repairs.

He concedes that improving rather than repairing infrastructure would cost more, but argues there would be long-term savings.

"I think the logic is absolutely compelling," he said on Monday.

Mr Newman has also asked the federal government to bring back relief payments for damaged social infrastructure, such as playgrounds and sporting facilities, after they became ineligible in December.

Flood-affected councils across Queensland say they're facing repair bills they simply can't afford, and the result will be higher local council rates unless the federal government changes its stance.

Mr Newman also asked the commonwealth for extra relief for farmers, particularly in the North Burnett citrus growing region.

Many farms may fold after suffering their second disaster in two years, he said.

"We need to make sure that towns such as Gayndah, Mundubbera and Eidsvold don't go into an economic death spiral," Mr Newman said.

Meanwhile, the Queensland flood appeal is looking dismal compared to the appeal two years ago which raised a quarter of a billion dollars.

The appeal's chairman Terry Mackenroth says only $6 million has been raised so far but at least another $9 million will be needed.

"That's just to start, before we start to look at repairing homes and replacing some homes," he said.

Mr Mackenroth is appealing to corporations to dig deep, but admits they may have donor fatigue from an overwhelming number of natural disasters in the last decade.

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