Australia imposes A$2.8bn green spending cut to finance flood repairs

Australia’s Labour government is to cut spending on green programmes by A$2.8bn ($2.78bn) to fund the rebuilding of areas affected by recent flooding.
Two-thirds of the A$5.6bn the Queensland government estimates is needed to rebuild flood-affected areas will be delivered through spending cuts and the removal of green industry assistance, according to a statement released by Prime Minister Julia Gillard’s office.
The Gillard Administration said it will reduce and defer spending on the Solar Flagships and Carbon Capture and Storage Flagships programmes; cap funding for the Renewable Energy Bonus Scheme – Solar Hot Water Rebate and solar communities plan; and discontinue Round 2 of the Green Start scheme.
The government said it will also abolish the Green Car Innovation Fund and the Cleaner Car Rebate Scheme, and plans to save $1bn by delaying infrastructure projects to free-up funds and workers.
The cutbacks are accompanied by a levy on earners receiving more than $50,000 each year that will go towards reconstructing flood-affected regions, with the vast majority to go on rebuilding essential infrastructure, the government said.
Agreeing to make an advance payment of $2bn to the government of the heavily-affected Queensland area, the government has also promised to deliver the budget surplus as promised in 2012 and 2013.
Preliminary estimates of the infrastructure repair costs under existing arrangements for the Natural Disaster Relief and Recovery Arrangements are levelled at $5bn, of which the Australian government has committed to provide close to $3.9bn.