The government announced that it is allocating A$3.1bn ($2.2bn) over the next five years to a North Queensland Flood Recovery Package, most of which would help farmers affected by the February floods in Queensland.
This was announced in the Federal Budget unveiled on 2 April for the fiscal year starting 1 July 2019.
The government also set aside A$3.9bn for a new Emergency Response Fund to help recovery from future natural disasters.
The Insurance Council of Australia (ICA), which represents general insurers, said in a statement commenting on the Budget that is it is pleased the Morrison government is taking some positive steps towards addressing the urgent issue of climate change.
The ICA added, however, that the government has “again failed to provide a vision or a sustainable solution for millions of Australians who live in disaster-prone regions.
“Treasurer Josh Frydenberg has pledged A$3.9bn for the natural disaster Emergency Response Fund, A$232m to help flood-affected North Queenslanders and A$8bn in additional spending on infrastructure. He has also promised up to A$300m in grants to help flood-affected farmers rebuild damaged farm infrastructure, replace livestock and replant crops.
“None of this money appears to be directed towards preventing natural disasters or making homes and businesses more capable of withstanding the impact of floods or cyclones.”
The ICA stated that the government has ignored the Productivity Commission, which had recommended the Commonwealth invest at least A$200m a year in mitigation and resilience projects (matched by state and territory governments). At present about 97% of disaster funding goes to clean-up and recovery, and only 3% on prevention.
The insurance trade body believes a significant portion of the Emergency Response Fund should have been directed to a programme of investments in nation-building infrastructure projects, geared towards solving the problem of natural disasters rather than continually patching up communities and people in the aftermath.
The ICA added that it is committed to working with the Federal Government, along with state and local governments, to enhance community resilience and disaster prevention.