Commonwealth needs to
help communities mitigate against costly natural disasters
16 June, 2013
The Report,
launched today, assesses the health of the national economy. It analyses
government debt, household wealth, the risk of inefficient infrastructure
investment in regional areas and includes a detailed assessment of the effects
of the mining industry, concluding that there have been negative effects on
areas outside Western Australia and parts of Queensland. The Report also provides comprehensive economic analysis of every local government area in Australia and outlines the financial implications for regions at risk of natural disasters.
Leading Economist and co-author, Dr Peter Brain says major disasters can cost between 0.4 and 0.7 per cent of Australia's gross domestic product (GDP) - the total monetary value of all goods and services produced in Australia.
"We estimate that the Black Saturday Bushfires of 2009 in Victoria would have cost 0.4 per cent of GDP and the Queensland floods of early 2012 would have cost about 0.7 per cent of GDP in recovery expenses. We're talking about figures of up to $10 billion dollars," Dr Brain said.
"It can take communities years to recover from a major disaster and the overwhelming likelihood is that these disasters are going to occur more frequently. This means that some places may become uninsurable. "
According to co-author Dr Ian Manning, the Report evaluates the cost of recent major natural disasters and attempts to identify the cost benefits of mitigation: "Our research highlights the need for the Commonwealth, as the financially dominant layer of Government, to assist with helping communities to be as resilient as possible."
President of the Australian Local Government Association, Mayor Felicity-ann Lewis says the Report reinforces ALGA's continued calls for increased federal funding for natural disaster mitigation to ensure that local communities are better prepared in the face of more severe and frequent weather events.
"In ALGA's latest Budget Submission, we argued that the amount of federal funding devoted to mitigation is not sufficient to meet the needs of local communities. We highlighted the need for an increase in funding for mitigation to $200 million over four years with a change to funding partnerships between the Commonwealth, State and local governments," Mayor Lewis said.
"Assisting communities to mitigate against natural disasters is critical in reducing recovery costs and impacts."
Media enquiries:
Megan Magill, Director Public Affairs, Australian Local Government Association (ALGA) 0418 415 649
Dr Peter Brain, Economist, National Economics 0419 588 021
Dr Ian Manning, Economist, National Economics 0416 548 944
The Report can be accessed from the ALGA website: www.alga.asn.au
