As we commented on at the time (see here) the Productivity Commission draft report into disaster relief funding contained some very worrying recommendations around NDRRA disaster funding. The proposed reduction in Federal assistance from 75% to 50% would result in a massive, and achievable, increase in the share of cash coming from State government. Inevitably the slack would need to be taken up by Local Councils who patently do not have the resources (or revenue raising powers) to do so. The proposal in its current form would have enormous consequences for the future development of Northern Australia. This would appear to be completely out of step for a Federal Government that has stated its case as pro-regional development.
Today’s story in the Cairns Post highlights that Local Councils in the Far North are well aware of the issue and are ramping up their campaign to have the recommendations removed from the final report.