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The Forum > Article Comments > Gillard's spin on flood levy sucking her into the vortex > Comments

Gillard's spin on flood levy sucking her into the vortex : Comments

By Malcolm Colless, published 31/1/2011

Gillard’s flood levy is all about demonstrating that she has what it takes to be a real leader. But it may, in fact be her undoing.

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Gillard is addicted to mass social 'reform' programs similar to those imposed in dictatorial regimes in which everyone is forced to pay for schemes which are ultimately ideological in nature. Money from the new tax is not for the flood victims per se, but to avoid accessing other funding already allocated for 'reform' programs. The NBN, for example, is untouchable.

She has had great problems finding the money for such programs and simply raising taxes is usually a big vote loser. A natural disaster (for which the Government should have already been prepared)is an opportunity for her to impose a new tax with the cover of it being a social welfare fund, particularly as the Carbon Tax, which she promised would not happen,looks a little shaky now.

Now we will hear from Labor the 'you're stopping the recovery and hurting the people of Queensland' line when the Opposition attempt to block the legislation. This is of course a red herring. The Flood Tax is about obtaining a new source of income for the Govt so they can protect monies already allocated for their future social 'reform' agenda.
Posted by Atman, Monday, 31 January 2011 10:16:08 AM
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The PM should realise that the imposition of a levy would cut disposable income and this in turn would slow down the economy , cut tax revenue and lessen the prospect of achieving budget surplus in 2012 - 2013.

Furthermore, besides punishing those who have already contributed by way of voluntary assistance or donations, imposition of the levy would deter people from taking appropriate insurance cover (as they would expect similar levy assistance in future), or from making donations to flood victims in future.

Instead of imposing the levy, the Govt should let the Budget go into deficit. Budget surpluses are not sacrosanct.

Alternatively, the Govt should delay, or better still abandon, expenditure on the ideological NBN project.

However, closer analysis suggests that the Federal Govt should not pick up the tab for the flood damage in Brisbane at all, as this flood was the result of apparent negligence on the part of a Queensland Government entity, namely, the operator of the Wivenhoe Dam. Because of the operator's lack of foresight, a third of the dam's capacity had to be released on Tuesday 11 January when the Brisbane River was already carrying massive runoff.

(Stewart Franks, a hydrologist at NSW’s University of Newcastle, warned in a peer-reviewed scientific article published in 2006 that the risk of serious flooding in southern Queensland and NSW increases significantly when a negative phase of the Interdecadal Pacific Oscillation corresponds with a La Nina event (http://jennifermarohasy.com/blog/2011/01/is-it-time-to-listen-to-so-called-deniers/#more-7359) The Australian Bureau of Meteorology, given these same conditions, forecast average rainfall last spring! )

Given that Anna Bligh displayed great leadership qualities during the flood crisis, she no doubt would find the way for the Queensland Govt to pay for that Brisbane flood damage. This would have the benefit of instilling greater Qld Govt spending efficiency in the future
Posted by Raycom, Monday, 31 January 2011 11:08:56 AM
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Disposable income 1.40 / week how measly can one get. You will just have to stay away from poker machines and horses.
Posted by a597, Monday, 31 January 2011 11:27:58 AM
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Atman, Monday, 31 January 2011 10:16:08 AM

NBN ; So you think it's OK for you to have a "Free Porn Internet Access"
but the peoples of the North not .
Sure glad your not our PM you are a selfish Atman .
Posted by Garum Masala, Monday, 31 January 2011 12:33:36 PM
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The Snowy Scheme demonstrates how water can diverted under ground and the locality the water came from is elevated how no one is talking about a Dam up there somewhere fed by canal and /or tunnel the Dam would sure help the environmental sustainability of the Murray Darling System in times of extended drought events .

Another plus would fresh water Fishing utopia that close to Brisbane ,
an Eildon for Qnsland , Houseboats , Water-sports etc. a Fresh Water Tourist Mecca nearly rivalling Victoria !
Posted by Garum Masala, Monday, 31 January 2011 1:17:11 PM
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Raycom,
There are many, many, areas in Qld other than Brisbane affected by these floods. The wivenhoe release only affected Brisbane.

There are too many towns and areas to name that will need major infrastructure rebuilds. The media have only covered a handful.

Queensland will need the Commonwealth to fund many of these rebuilds.. Our backs were against the wall before the floods. Anna was selling anything she could find. I don't know where she would find the money for the massive task the floods have left us.
Posted by Sparkyq, Monday, 31 January 2011 6:19:57 PM
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Disposable income 1.40 / week how measly can one get. You will just have to stay away from poker machines and horses.
a597,
C'mon, you're smarter than that. Surely you know that this about more than a measly $1.40.
Posted by individual, Monday, 31 January 2011 9:37:03 PM
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I don't know where she would find the money for the massive task the floods have left us.Sparkyq,
How about more speed cameras, higher rego, greater fines, higher parking fees etc. Mate, the opportunities are as boundless as Labor incompetence.
Posted by individual, Monday, 31 January 2011 9:39:40 PM
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individual, Monday, 31 January 2011 9:37:03 PM

Re; your remarks about disposable income I am a stroke victim , I can walk awkwardly short distance only, 67 years old not eligible for TAXI
fare assistance I have one daughter at Uni and a son at Tafe , I just don't have no disposable income I have a deficit , do I qualify for your miserable ba.....d Status ?
You seem to "vote in" TV performers believing them to the "Ducks-guts" to run your corrupt State so don't winge about most of us who having noted your largess with money are reticent to support your Voters .
Posted by Garum Masala, Monday, 31 January 2011 11:07:18 PM
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Garum Masala,
I'm sorry but you appear to misunderstand my post. It was aimed at a597's statement re "measly'. I'm totally on the side of those who already contribute more than their share. It was to highlight at the incessant fleecing of the working class by Government which is playing Trojan Horse with taxes.
The flood victims desperately need help but so do our pensioners, many of whom have been victims for a lot longer than one bad season. Again I say, there is only one fair tax & that is a flat tax. We simply cannot call ourselves a fair society when one lot pays more tax for earning less money. With a flat tax & a competent Government in place there would not be a need for constant calls of help. The coffers would be full as they were before. With a better economy resulting from flat tax people could afford to build better & in better places & less damage would occur.
Posted by individual, Tuesday, 1 February 2011 6:39:56 AM
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It is unfortunate that so many people are so dense in the head, In the 1950's, the top (remember that word) tax of 66.6% was introduced to drag us out of the depression that had been causing horrible consquences with conditions for the workers and small business. This forced the reduction of obscene salaries etc., and the Australian economy bounced back, workers were able to enjoy their life, get full time jobs (not just 2 and 3 day jobs many have to rely on today), buy and keep their own homes and cloth and feed their families properly. Unfortunately, the parties that came in after 1971, have a different outlook and want to regurgitate the conditions by returning conditions to the 1930's era. If the top tax was returned to that 66.6% and the no tax was increased to probably $25,000, the economy would increase remarkably, we would have plenty in kitty to cover the recovery from floods and fires, beyond what the insurance companies would do, and the public would find that they are all much better off. As long as we had Politicans who could keep thands out of the till, and not go on a rampage for themselves as they have done previously, they have no integrity,certainly not in those main parties. Unfortunately, these same parties have got a gimlet in their head and it has leaked in that exporting of our nen renewable, non value added resources with the reciprocal import of all those goods that our own factories used to manufacture before the exporting began, is destroying our own industries.
Posted by merv09, Tuesday, 1 February 2011 7:14:42 AM
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Individual you are right please accept my apologies .
Posted by Garum Masala, Tuesday, 1 February 2011 8:09:18 AM
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Garum Masala

I think you misread my post. I'm saying that Gillard considers the NBN untouchable,so instead of accessing a small amount of that money, she has unnecessarily imposed a new tax for a natural disaster (which occur predictably and regularly in Australia)to avoid accessing monies destined for her social reform agenda, virtually all of which has proven a failure so far. (Cash for clunkers, BER, Green loans scheme, Home Insulation Scheme)
Posted by Atman, Tuesday, 1 February 2011 9:12:30 AM
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OK individual, please don't give the b*t*ch any more ideas but you can be sure she has a few absolute crackers up her sleeve.
Posted by Sparkyq, Tuesday, 1 February 2011 5:52:38 PM
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Sparkyq, Tuesday, 1 February 2011 5:52:38 PM

I am thinking our Julia is a liability , nothing ever stacks up for her , she might be politically clever but her business acumen smells .

Is it time for another "Putsch" ?

Oakshot and his peculiar Mates might muster up the puissance to Mount the "ABBOTT" what fun !
Posted by Garum Masala, Tuesday, 1 February 2011 7:15:45 PM
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Sparkyq,
the way things are heading she won't be looking up her sleeve any longer. The time has come to lower her sights.
Posted by individual, Tuesday, 1 February 2011 9:28:00 PM
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Sparkyq
Firstly, all flood damaged infrastructure/property should not necessarily be rebuilt. For example, it would be imprudent to restore all of the low-lying areas that should never have been built on in the first place.

Secondly, the Qld Govt should bear its fair share of funding the rebuilding. What use does it make of the State royalties that it levies on the mining companies? Instead of spending the royalty funds on Brisbane infrastructure/projects (country people long ago labelled it the Queen Street Govt), it should use them to restore roads that serve the mining/country regions.

There is absolutely no justification for the Labor Govt implementing a special flood levy.

Any funding that the Commonwealth provides, should come direct from its annual budgets, as has always been the practice. It should be remembered that the Labor Govt had no hesitation in spending billions and billions of dollars on unjustified pink batts installations and building unproductive Julia Gillard memorial halls, and is now in the process of spending vast amounts of funds on the NBN which is not cost-benefit justified . It is ironic that it is now crying poor when it comes to funding the flood damage.
Posted by Raycom, Tuesday, 1 February 2011 10:32:49 PM
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Raycom, I agree with you that a long hard look should be taken at what infrastructure is replaced, and where. At the moment it is essential that we quickly reconnect people ie, roads, rail, power, comms services.

Unfortunately, Labor in Qld has squandered the income from mining royalties on "heaven knows what" but it aint there any more.

And i agree with you about the levy. Julia should be able to take the red pencil to spending. I am sure there are a lot of funds going to less than useful research, social programmes and some aid programmes, just to name a few. Oh and of course the projects you have mentioned
Posted by Sparkyq, Wednesday, 2 February 2011 5:57:40 PM
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