development on flood plains

Nick Xenophon has initiated a parliamentary inquiry with very wide terms which should reveal any relationships between the Queensland Government and Queensland insurance terms for people affected by floods in that State. Since the Queensland Government has been responsible for the planning that has led to building on known floodplains, I would hope that the inquiry will receive and make public any documents revealing how the Government and insurers dealt with these risks in advance. The Inquiry asks for documentation going back to 2000.


Unlike all other states in Australia, the Queensland Government failed to insure its assets on the global market, probably because of the very risky planning in Queensland. This failure dramatises the unfairness of not warning Queenslanders that their homes were practically uninsurable due to being built on floodplains.[1]

Inquiry into State government insurance and flood levy

Terms of Reference

Senator Xenophon, pursuant to notice of motion not objected to as a formal motion,
moved business of the Senate notice of motion no. 4—That—

(1) The following matters be referred to the Economics References Committee for

inquiry and report by 2 May 2011:
(a) the provisions of the Tax Laws Amendment (Temporary Flood and Cyclone Reconstruction Levy) Bill 2011 and the Income Tax Rates Amendment (Temporary Flood and Cyclone Reconstruction Levy) Bill 2011;
(b) current insurance and reinsurance arrangements of the states and territories of their assets and infrastructure;
(c) the appropriateness of fiscal arrangements for natural disaster reconstruction efforts; and

(d) any related matters.

(2) Given that the proposed Flood and Cyclone Reconstruction Levy is intended to be allocated to the State of Queensland:
(a) the Senate calls on the Queensland Government to provide to the committee any correspondence, and any related documents, between the Queensland Government and any insurance advisers, insurance brokers, reinsurance brokers, insurers and reinsurers in relation to providing services or insurance products, or offers or proposals of insurance or reinsurance of Queensland Government assets, from 1 January 2000;
and
(b) in conducting its inquiry, the committee seeks from any relevant individual, corporation or other private entity, any correspondence, and any related documents, between the Queensland Government and any insurance advisers, insurance brokers, reinsurance brokers, insurers and reinsurers in relation to providing services or insurance products, or offers or proposals of insurance or reinsurance of Queensland Government assets, from 1 January 2000.

(3) In undertaking the inquiry, the committee hold at least 3 days of public hearings in Queensland.
For further information, contact:

Department of the Senate
PO Box 6100,
Parliament House
Canberra ACT 2600
Australia
Email:[email protected]

[1] Lauren Wilson, "State's insurance omission binds PM, " The Australian, On February 4, 2011. Note that Anna Bligh would be the person responsible for this omission and that it is more than likely that anyone involved in planning policy at a high level in Brisbane also knew of this.