Debbie casts dark shadow over Qld Budget

The cost of Cyclone Debbie is expected to have a major negative impact on the upcoming Queensland budget.

Houses surrounded by floodwaters in Rockhampton

The cost of Cyclone Debbie is set to have a negative impact on the upcoming Queensland budget. (AAP)

Queensland's budget is expected to take a "big hit" from cyclone Debbie, but the full size of the hole remains to be seen.

The category 4 cyclone is estimated to have caused billions of dollars worth of damage to the Whitsundays region while flooding also wrought major havoc down the state's coastline.

Treasurer Curtis Pitt had previously expected to post a $2 billion surplus when he hands down his third budget on June 13, but now concedes that will be much smaller because of the cost of the disaster.

"There is still much work to be done when it comes to the budget, but we will be focusing on helping communities recover following these natural disasters," Mr Pitt said on Tuesday.

"It is, of course, something that will dominate the budget."

Mr Pitt said it was still "absolutely his intention" to deliver a budget surplus, but they had to work with the cards they had been dealt.

Adding to the treasurer's woes is the fact that on top of the cost of the disaster, coal production in the region has suffered setbacks, meaning at least part of the royalties that would have generated the big surplus won't arrive before budget time.

Shadow treasurer Scott Emerson said the government shouldn't be relying on unexpected windfalls to balance the books.

"This is a state that suffers from natural disasters, you have to manage the budget. You don't manage it on a hope, a wish and a prayer," Mr Emerson said.

"If we hadn't had those unexpected royalties, we'd be in real trouble now."

The warning came as the minority Labor government unveiled its Advancing Trade and Investment strategy, with a focus on foreign exports, and encouraging university enrolments in the science and engineering fields.


Share
2 min read

Published

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world