Tropical Cyclone Anthony has picked up speed and is expected to bring destructive winds to coastal communities as it nears the north Queensland coast.

Anthony is expected to cross the coast near Townsville tonight as either a category one or two cyclone.

A cyclone warning continues for Queensland's coastal and island communities from Lucinda to Proserpine and a cyclone watch is on for coastal and island communities from Innisfail to Lucinda and Proserpine to Saint Lawrence.

The category one tropical cyclone was estimated to be 600 kilometres east-north-east of Townsville and 510 kilometres north-east of Bowen just before 5:00am (AEST) today and is expected to make landfall early tomorrow morning.

http://www.abc.net.au/news/stories/2011/01/30/3124974.htm

see argument above...

The universal reaction of financial markets and economists to the disaster was that it significantly amplified the burgeoning inflation hazards Australia faced. Food prices would escalate, existing labour shortages (and wage demands) would be accentuated, and the federal government’s fiscal position would deteriorate. In total, there could be up to $20 billion of new public and private spending injected into an economy that is already trying to digest the biggest investment boom in its history.

And this needs to be contextualised against a background of emerging inflation pressures in most of Australia’s key trading partners (which we risk importing), a currency that is unlikely to offer much more purchasing power relief, and unaccounted ‘off balance-sheet’ investments, such as the $40 billion NBN, which will further clog up the nation’s economic arteries.

For the last few years every man and their dog, including the Opposition and a Reserve Bank board member, have called on this government to tighten its fiscal belt given the original stimulus was sized for a recession that never materialised.

So the Prime Minister prudently does exactly this. Instead of allowing the deficit to blow-out, which was what most economists expected, she surprised by funding two-thirds of the Commonwealth’s $5.6 billion tab via spending cuts or deferrals, and the remainder through a tiny, once-off levy on higher-income earners unaffected by the floods. She also liberated stretched labour supply by expediting the processing of 457 visas and doubling the number of places in the job seeker relocation program. This all sounds like sensible stuff.

The response of financial markets was emphatic: the probability of future interest rate hikes was instantly cut. Investors with real cash in the money markets decided that the government’s package was anti-inflationary, and would relieve some of the monetary policy burden on the Reserve Bank.

Yet Gillard and Swan have been pummelled by the pundits.

While one can always quibble with the details, the truth is that the Government’s package is thoughtful and responsible.

http://www.abc.net.au/unleashed/43308.html

The Federal MP Tony Windsor has criticised Tony Abbott for suggesting the independents reconsider their decision to support a Labor Government because of the flood levy.

The Opposition Leader is strongly against the levy, which means the Government needs the support of the crossbenchers for it to pass Parliament.

Mr Windsor says he is considering his options - but he says Mr Abbott has shown a lack of judgment by turning the issue into a leadership test.

"To be calling for a change of Government essentially on the back of one of the biggest disasters that Australia's ever seen is a failure in terms of his capacity to judge certain circumstances, and I don't accept that advice, as gratuitous as it is," he said.

The Opposition Leader has told the balance of power MPs to do some soul searching over how the Prime Minister has handled the issue.

But Mr Windsor says he will not take up Mr Abbott's advice.

"Well I think it's an extraordinary lack of judgment that Tony has shown in relation to this. To be debating a change of Government on the back of a disaster is very poor," he said.

He has argued political games are distracting from the floods rebuilding response.

The Government has hit back at Mr Abbott's comments - accusing the Opposition Leader of using the crisis for personal gain.

But Mr Windsor says the brawling strengthens his case for a permanent natural disaster fund.

http://www.abc.net.au/news/stories/2011/01/30/3125052.htm

Six months ago, Pakistan was first hit by its worst floods in living memory. More than a fifth of the country, and over 20m people were eventually affected.

The UN, global aid agencies and the Pakistani authorities launched a huge relief operation, but many Pakistanis feel they have been left out and are still suffering.

Aleem Maqbool revisits a community in southern Punjab, one he first saw soon after the floods had hit, to find a community that has barely been able to move on

http://www.bbc.co.uk/news/world-south-asia-12314688

Laurie Dicker (Letters, January 31) makes the same point as the government. That is, that the people who dare to ask whether the proposed levy is appropriate and whether funds will be well managed and well targeted should shut up and get out of the way.

My response is the opposite, based on the demonstrated capability of this government to manage a significant emergency spend.

The BER, insulation, clunkers, housing and various ''green'' projects have been abject failures. The national broadband network is lining up for a similar result. Good governance isn't rocket science. It doesn't involve enforced group-think in which everybody stands behind Julia nodding. If people don't ask why now, should they wait until after the money has been wasted?

Other than platitudes, has there been a compelling argument that the government cannot source more funds by reprioritising existing expenditure and delaying repayment of the Rudd/Gillard/Swan debt? I haven't seen it.

http://www.smh.com.au/national/letters/high-flyers-cannot-wish-away-the-drug-laws-20110131-1ab14.html

Brian Kelly West Pennant Hills

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Gus: CRAP, OH, CRAP!!!... Abject failures????

Brian Kelly is mouthing what Tony Abbott and private (M) media drone on about — without proofs. The Labor government insulation program satisfied more than 99.9 per cent of customers. It's only due to a few shonky entrepreneurs that about a few hundred houses got problems and that four people died. The NBN is the envy of many other countries in the world which — like in the US — cannot organise a coast to coast chook-raffle due to a myriad of private enterprise conflict which could not play a tune together in an orchestra... The School program has been successful to at least 80 per cent — the speed of action took some people by surprise and the implementation by the public service was less than perfect in the co-ordination with some schools' needs. Since its early teething problems, the school program has now smartened up.

Without these programs, and the 900 flat tax rebate for people under a certain income, Australia's economy would be in the same boat as Spain or Greece, despite a strong resource sector that mostly only feed the coffers of rich miners.

Some people resent the economic success that Labor has maintained despite very difficult worldwide circumstances. These grumps will even attribute this success to the previous Rattus government. I will say grow up. Rattus would have had us follow in the footsteps of the US and our economy would have sunk like theirs did...

Sure Federal Labor has its problems, including the way it deals with the rabid zionists... But in general, Australia is in a much better position than all countries but one — and this is due to the Federal Labor government's management...

Grow up... see toon at top...

Federal Opposition Leader Tony Abbott has sent an email encouraging people to donate money to the Liberal Party's campaign against the Government's proposed flood levy.

The Government plans to introduce the one-off levy for people earning more than $50,000 a year to help pay for the flood recovery. Flood victims and low-income earners will be exempt from the levy.

In the message to supporters, Mr Abbott outlines his opposition to the levy and says it defies credibility that the Government cannot find the money through budget cuts.

Mr Abbott's email against the levy provides a link to the Liberal Party's website where donations can be made.

A spokesman for Mr Abbott says the link was added by the Liberal Party headquarters.

In the email, Mr Abbott says the Government should not impose the levy to repay for infrastructure damaged by the floods.

"The Coalition is committed to doing everything necessary to get the infrastructure of Queensland, northern NSW and northern Victoria operational again. But we disagree with the Government on how to pay for it," the email said.

http://www.abc.net.au/news/stories/2011/02/02/3128336.htm

Gus: IDIOT ABBOTT!!! After Cyclone Yasi, there will be no choice but HAVING a levy...

And by the way, this cyclone might actually destroy the sugar cane crop to the relief of many investors... See, they sold the sugar content of the crop on the future's market and after a much warmer winter than usual the sugar content dropped as much as 25 per cent of what it should have been — making the investors short of 75 per cent on their sale/supply price attracting huge penalties... Thus with the crops destroyed, insurance and government rescue package is likely to buoy them to nearly 100 per cent of their "futures". Who knows.

The Greens have announced they will support the Federal Government's $1.8 billion flood levy in exchange for some cuts to Government programs being reversed.

The Government had planned to fund flood reconstruction by imposing the levy as well as cutting the solar flagships scheme and a rental affordability program.

Greens Leader Bob Brown says his party will vote for the levy after striking a deal with the Government to abandon those cuts.

"We have had a lot of negotiations with Prime Minister Gillard and her several ministers," Senator Brown said.

"This is the Greens in action. This is the Greens responsibly ensuring that the victims of the flood catastrophes across this country get assistance and get it quickly.

http://www.abc.net.au/news/stories/2011/02/17/3141722.htm

The Federal Government now has the numbers to have its flood levy succeed in the House of Representatives.

Tasmanian independent Andrew Wilkie has announced he has struck a deal with the Government and will now vote for the levy.

In return he says he has convinced the Government to scrap its plan to cut the Australian Learning and Teaching Council.

Yesterday the Greens said they would vote for the flood levy after forcing the Government to back down on other cuts.

The Government still needs independent Senator Nick Xenophon's support for the bill to pass both houses, and Mr Wilkie says he should back it.

"I would encourage him to do that in my opinion we need to get on now," he said.

http://www.abc.net.au/news/stories/2011/02/18/3142621.htm?section=justin