Australian Prime Minister, Julia Gillard, referred to the establishment of a special tax to cover the repair of damage caused by historic floods that hit the country since late November. Crops, roads, railway and thousands of homes were devastated by floods this month the north-eastern Australia and four other states.Canberra said it was the most expensive natural disaster this country has ever known. Ms Gillard, Labor said it was facing tough decisions given the extent of damage in Queensland, but keep it intended to renew its commitment in 2012-2013 with a budget surplus. "The spending will be reduced but it is also possible that there is a tax," she said Thursday night at the ABC television.
"I am working on these decisions and I will announce in due time. We still need to work because the overall cost of damage is not stopped." The head of government, however, indicated that this disaster, estimated by some economists to 20 billion Australian dollars (about 14.6 billion euros), could lead to higher food prices and weigh on GDP, while stating that the mining sector, lung of the economy, resisted well.
"This means that in 2012-2013 the economy will be very dynamic and it will be a good time to have a budget surplus and set aside for the future," said Julia Gillard. The Liberal opposition has for its part, objected to the idea of taxing the floods, calling for greater control of spending.
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