Floods shatter small business, resources, farms

Floodwaters have destroyed produce and farming equipment valued at more than $1.5 billion in south-east Queensland, and road repairs will cost at least the same, as the region braces for the start of the wet season.

Ratings agency Moody's yesterday warned that the cost of worldwide steel production could double because of the floods that have closed several mines and damaged transport routes. Queensland supplies almost half the world's metallurgical coal, and prices have risen by $US50 a tonne since flooding started.

''The flooding has closed several of the region's mines indefinitely and damaged rail lines that connect the coal to terminals, potentially delaying 8-15 million metric tonnes of coal exports from entering the seaborne market,'' Moody's analysts wrote in a weekly credit outlook.

Floodwaters surged over the Bruce Highway near Gympie yesterday, cutting off key transport routes for freight and rescue workers.

The Mary River was expected to reach 20 metres last night, and further rain was forecast for today. A severe thunderstorm and flash-flood warning was issued for the south-east and north-west parts of Queensland.

The federal government yesterday announced a package for people who had lost their jobs or who cannot return to work.

They will be eligible for more than three months of dole-style payments, Prime Minister Julia Gillard said.

Payments were also aimed at encouraging seasonal workers not to leave areas trying to recover from the floods.

''It's important economically for us to hold labour, particularly seasonal labour, in locations so that as communities move to recovery they don't immediately experience a skills shortage,'' Ms Gillard said.

Last week, Premier Anna Bligh estimated $5 billion would be wiped from the Queensland's economy.

Main Roads Minister Craig Wallace yesterday estimated the road damage bill at about $1.5 billion.

The president of Queensland farm group AgForce, Brent Finlay, estimated more than $1 billion in grain crops - chickpea, wheat, sorghum and corn - and farming equipment had been lost to in the floods.

Up to 30 per cent of the state's sorghum crop and up to 40 per cent of all grain crops had been lost, Mr Finlay said.

''This is the start of the wet season in Queensland. We have a number of months [of rain] to go,'' he said. Cyclones were also expected in coming months, he said.

Floods have affected grain, sugar, vegetables and fruit farmers, and small businesses in Gympie, Chinchilla and Rockhampton have been forced to close.

Chief executive of Queensland Tourism Industry Council Daniel Gschwind said tourism in Rockhampton and Bundaberg could lose $100 million in revenue, and the rest of the state could be affected by spin-offs from the floods.

''A part of Queensland is affected, but a large part is fully functional. It may rain, but it is the wet season after all,'' Mr Gschwind said.

The Queensland government has already received 1000 inquiries from business owners and primary producers for emergency grants of up to $25,000 for repairs and temporary costs.

Low-interest loans of up to $250,000 are also available.

The federal government's income help will be paid at the unemployment rate of about $500 a fortnight, and will be available to people affected by floods in about 150 local government areas around Australia.

It is expected the payments will cost the government tens of millions of dollars in addition to other disaster relief payments already from the government, which Ms Gillard said had already reached $10 million after being given out to about 8000 victims.

Vegetable and fruit crops waiting to be harvested in Bundaberg, Gympie and the Lockyer Valley have been wiped out by floods.

Melons, pumpkins, capsicum, grapes citrus fruit and tomatoes producers will be affected according to the chief executive of horticulture lobby Growcom, Alex Livingstone.

''At the moment we are quite concerned about whether or not we can get the autumn crop planted,'' he said.

Queensland's sugar industry faces the loss of half of next year's crop because of waterlogged fields on top of losses of an about $400 million in this year's crop, wiped out by heavy November rain, vice-president of the Cane Growers Association of Queensland, Paul Schembri said.

The state's north received rain for 26 days in November, making it impossible for farmers to harvest their crops.

Although historically high sugar prices have eased problems for cane farmers who did harvest their crop, about half of next year's crop may now be lost because of the rains.

''All the cost that we have outlaid to plant that cane - all the diesel, all the labour all the other cash inputs - have all been basically lost and we will have to dip into out pockets to do that all again,'' Mr Schembri said.

The economic development officer for Gympie Regional Council, Lynne Wilbraham, said some local retailers had had a downturn before Christmas and were counting on post-Christmas sales. But the floods had shut down local commerce in recent days.

''A lot of businesses in the central business district in Mary Street area have been through floods before.

One of the major inconveniences is physically having to move [equipment and goods],'' she said.

''It is going to have severe economic impact on the region because the main underpinning industries are manufacturing and agriculture.''

source: smh