Media Release

Peter Gutwein MP
Shadow Treasurer

Friday 4th March, 2011

Flood levy concerns

The State Government must immediately reveal what the cost of Federal Labor’s flood levy deal with Independent Senator Nick Xenophon will be for Tasmania.

Federal Labor has promised the Senator that it will require all states to have disaster insurance – something Tasmania currently does not have.

How much will this disaster insurance cost Tasmania?

In NSW, it costs $35 million per annum. In Victoria, it costs $36 million per annum.

Because of Labor’s mismanagement, Tasmania’s budget can ill-afford a multi-million dollar whack.

The Premier and Treasurer Lara Giddings has also still not revealed whether the flood levy funding for Launceston is safe. The Launceston City Council has been promised $23.5 million, of which $11.5 million is State Government funds.

Is this money safe from Ms Giddings budget axe? Or will Launceston residents face massive damage in a flood because the Government couldn’t do its sums and overspent the budget by $1 billion in the last decade?