Floods to hit food prices: Chalmers
TREASURER Jim Chalmers has warned Australians to expect grocery prices to continue to climb after farmland in regional Victoria was hit by flooding.
Up to 9000 homes have been inundated by floodwaters in northern Victoria and another 34,000 are likely to be inundated or isolated across the southern state, according to Federal Emergency Management Minister Murray Watt.
“It feels like the hits keep coming,” Dr Chalmers said on Tuesday morning. “There will be an impact on the economy and there will be an impact on grocery prices.
“We have seen this before
unfortunately where we see prices in our supermarket go up and that’s what we’re facing again.”
Milk, for example, is being poured out at dairy farms across Victoria as floodwaters cut transportation routes and made it impossible for trucks to collect the essential item.
“Milk collection on farm is definitely being affected,” United Dairy Farmers of Victoria president Mark Billing said on Tuesday. “It’s been an absolute massive job given all the road closures and damage. When the water is receding in some cases, roads just simply aren’t there.
“If you can’t get it collected by the tanker, there is some milk that is getting dumped.”
However, he said that as
Victoria primarily exported its milk there was no urgent risk of a shortage in the state. However he called on the government to declare a state of emergency and enlist the help of the army to get grocery items to Melbourne.
Mr Chalmers flagged that emergency payments to flood-affected residents would be “crucial” and would get out to those who need them as soon as possible
“There are payments which are already kicking in,” he said.
The cost to the budget – due on October 25 – is yet to be fully understood with flood recovery likely to add significant pressure to what is already being described as a tough budget.
“We don't know yet how many billions of doldol lars this flood and its recovery will cost,” Mr Chalmers said.
“There is obviously going to be a big bill and we will be there. As always if there’s more that can be responsibly done obviously we can consider that.”
The Treasurer said the government would move ahead with a “responsible”
plan to tackle cost of living, living indicating that cheaper childcare and medicine as well as an extension of paid parental leave would form part of the budget.
“There will be a substantial impact on the cost of living and the budget and there’s no use pretending otherwise,” he said. “It’s not an easy balance to strike but we’re trying to strike it.”