Local tradespeople miss flood recovery work in Townsville

The federal government doesn’t require the use of local firms when it comes to insurance work, says prime minister

Local tradespeople miss flood recovery work in Townsville

Insurance News

By Mina Martin

Townsville is undergoing reconstruction work after the catastrophic floods that inundated the region in February. But according to local construction firms, the bulk of flood recovery work has gone to firms from out of town, hampering economic recovery.

There has been concerns that local tradespeople missing out on flood recovery work in Townsville contributes to worsening job and housing shortages in the flood-ravaged region.

“This community really needed that work boost and to have that come as a backlash after such a tragic event is just a little bit of a kick when you're down,” Sonya Corkery, Electrotek Queensland manager, told AAP. “To not be able to get some of that work to be able to get back on our feet a bit more.”

Corkery said major insurers have panels of approved builders they use, but few North Queensland firms have made it on the lists.

“Obviously we would never wish that that (the floods) happened again, but in the event that something like that happened anywhere in Australia we would hope that more of those local tradesmen have that opportunity,” Corkery told the news agency.

Prime Minister Scott Morrison said the federal government has no requirements for the use of local firms when it comes to insurance work. He did put insurers “on notice” though when he visited Townsville after the floods, with some heeding that call.

“Others, you know, they're arguing the toss,” Morrison told AAP. “I don't like to see that when a town like Townsville is rebuilding and where there can be more opportunities for local businesses to be involved in that, I think it just further reinforces and assists the recovery effort here in Townsville.”

The Townsville community is also now dealing with accommodation shortages, due to residents displaced by February’s flood as well as tradespeople from out of town.  

“The people that weren't really able to stay in their homes were limited to where they could stay and then tradesmen needed somewhere to stay as well," Corkery told AAP. “We've heard of situations where people on Magnetic Island have holiday houses they've had to rent out to businesses because there just is nothing left. That then gets built into the price, that goes to the insurer which then bumps up the premiums.”

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