More hip pocket pain

While the focus is on restoring essential services, cleaning up and disaster funding for people hard-hit by the worst floods since records began 100 years ago, there’s going to be a long-term impact too.

The Far North is a significant food bowl with the sector’s competitive advantage built on the region’s tropical climate and niche primary production. Leading sectors include raw sugar, live cattle, horticultural products, particularly tropical fruits, fish and shellfish, with more recent expansion including coffee, chocolate, wine, nuts and dried fruit. Cost efficient transport is key to keeping prices we pay at the checkout down and while major roads may be open in four to six weeks, State MP for Cairns Michael Healy has signaled that work could continue for up to two years, with the surface of the road looking all right but underneath being unstable.

That could translate to long term load limits, which will impact Far North growers and graziers trying to get product to market.

The Palmerston Highway is closed at Mungalli and Kuranda Range is closed at night for repairs, while the Captain Cook Highway at Oak Beach is closed.

Treasurer Jim Chalmers has warned natural disasters will hit the federal budget in May, with recovery funding adding billions of dollars in costs and disruption to mining, agriculture, tourism and construction.

A joint funding announcement of $64m was announced on December 22 and it includes $25m in recovery grants for primary producers and $25m for small businesses and not-for-profits.

That will be welcomed by many, but transport costs are already escalating, and that will directly translate to higher prices for consumers. We are already in a cost of living squeeze with the Reserve Bank increasing interest rates, and pressure on housing, five times in 2023 to 4.35 per cent.

A signature Far North fruit, mangoes, could rise from about $3 each to $8, because of the impact the floods had on growers.

Add transport costs to scarcity of product, and we can expect to pay more for everyday purchases like bananas.

Let’s brace ourselves.