Revenue earned from the lease of the Abbot Point Coal Terminal will be used to fund reconstruction efforts in Queensland.

The earnings are expected to reach more than $1.5 billion to supplement reconstruction efforts that are forecast to cost more than $5 billion . During the Mid-Year Fiscal and Economic Review (MYFER) today, Premier Anna Bligh and Treasurer Andrew Fraser unveiled the state’s preliminary damage bill from the floods, and the Queensland government’s response.

The flood recovery funding package includes a boost for the tourism sector, the prioritization of funding for damaged sports facilities and a funding injection for the Jobs Assist program.

“We have just faced the greatest natural disaster to ever hit this state, and with that comes enormous economic and financial cost,” the Premier said.

“The floods have swamped our state and left their mark on an economy still feeling the effects of the global financial crisis.”

Fraser said it made sense to use the proceeds from the lease of Abbot Point terminal, which was first announced in June 2009, to fund the operations of the Queensland Reconstruction Authority.

“Once that transaction is completed we can immediately direct those funds to the reconstruction effort, " he said. “We have also made several policy decisions to ensure all necessary resources are dedicated to the recovery and reconstruction effort."

The MYFER enumerated decisions to help rebuild Queensland:

* The Queensland Reconstruction Authority will be funded from the proceeds of the long-term lease of the Abbot Point Coal Terminal, which could exceed $1.5 billion.
* The Commonwealth’s initial allocation of $2 billion would also be directed to the Reconstruction Authority
* Plans for a Brisbane Cross-River Rail Project to commence construction in 2013 would be delayed by at least two years
* A new voluntary separation program for non-frontline public servants would generate $175 million in savings by 2012-13
* Councils would be given a $400 million advance on their estimated damages bill of $2 billion.

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