In all but large projects why shouldn't government be its own insurer? You see the nonsense of cumulative millions being wasted annually in premiums, even for small parcels sent through the post. It was rigid ideology not economic sense that caused government to take up private insurance.

It is very poor that economics editors are not exposing the bogeyman of the 'deficit' for what it is, an unnecessary mill stone around the neck for both sides of politics. It was and remains the quest for short term political advantage that prevents the federal government from borrowing against future income to reinstate infrastructure lost in the floods (and now the cyclone) and at the same time new infrastructure should also be funded.

Time there was scrutiny of the negative effects of party politics and that includes the Greens.

Governments, every one of them do self insure.
Not every thing but a great deal.
It is a sound business plan that pays off, insurance is not truly a gamble for insurance company's.
Like race day book maker they make book.
Based on known percentages they know they come out in front in the end.
Costs however for such as Queensland for insurance for these events would be extreme.
I think, may be wrong, both sides in that state took the risks and costs made it worth while.
SM good morning to you,is Gillard,Crean,that repulsive gent from the Hunter who both backed Latham and took free gifts including travel to and from China, as his dad did for years.
Are they from NSW ALP I rather think you lost that one.
Abbott just maybe, is nearing his use by date, Gillard has,, about two days after she took over,she however has just the one thing going for her.
Tony Little man Abbott.

Maybe the levy could be called the Labor mismanagement levy.

"MISMANAGEMENT of the government's controversial school halls program has resulted in $2.6 billion of taxpayer-funded waste that could have struck out the need for a temporary flood levy.....

Based on the taskforce's own data, if the state governments in NSW, Victoria and Queensland were as efficient in achieving the same price per square metre as the independent school authorities in these three states, the taxpayers would have saved as much as $2.6bn"

Thanks yet again Shadow Minister, your reminders are quite fun.
Yes a great deal of waste even theft, mostly carried out by middle class conservative fraudsters but Labor was not watching.
Did any of your mates get a quick quid out of it?
Too many did thanks for reminding us.
I am forced to ask about those Howard levees,and his never ever imposition of GST,not a levee I here you say.
And quite rightly mate!
It was just a great big new tax, the biggest single tax rise in our country's history bloke.
we,all of us, should continue to complain and cry crocodile tears, take the spotlight away from the pain, both we have seen and may see again.
Just whimper and complain, it works! some intent on not the victims but political gain are joining you.
Hear this my good Friend, leaks this morning PROVE GILLARD IS NO LEADER.
Point to a new policy's so mad it stinks already, a vacant ideas bag, and hinting now, the ALP horse is being kicked into life, a election is coming.
My bet? not because other than it is true, you are starting favorite.
Your team may be confronted by an opposition that is as dysfunctional as your mob are.
Great for our politics is it not CHILDISH games rather than statesman ship.

The thing is that if you choose to self insure you can only do it if you can stand the consequences if that the thing you are insuring against occurs. The imposition of a levy shows that the state government has not self insured, rather it's neglected the risk and hoped that the rainy day would never occur (or assumed that they could pass the cost on if it did).

Legitimate self insurance involves ensuring that at every point the risk is covered. That may mean paying premiums and saving into a reserve until the reserve is big enough to cover the risk.

The fact is that Bligh and her crowd have so badly managed the economy that during a mining boom they need to sell assets to keep going. At the same time they have not saved for a (really) rainy day.

That's not the fault of Victorians, Western Australian's, etc, it's the fault of voters in Queensland. Having a useless opposition has not helped.

R0bert

Maybe you are imagining that government should have a piggy bank full of money for possible catastrophes such as floods, bushfires and earthquakes. That is not what self-insuring is about and it is undesirable. If a government is in surplus it has taxed too highly and has not appropriately expended the taxes collected on necessary services.

Australia will come to regret the cynical, foolish political posturing that focusses on low deficits or even having surpluses as a 'proof' of good economic management. Why the economics editors of the few remaining newspapers of any worth do not speak up on this in the public interest is anyone's guess.

What is also objectionable is the encouragement of the parochial, dog in the manger thinking that long dead masters of wedge politics such as Joh Bjelke Peterson would be proud of.