Hobart City Council is calling for a national climate compensation fund funded by the fossil fuel industry to cover the rising costs of worsening climate disasters.
Deputy Lord Mayor Dr Zelinda Sherlock moved the motion which was adopted by council at its June 29 meeting.
“We are experiencing an increase in climate impacts (such as flooding, bushfires, rising temperatures, coastal and marine changes), placing pressure on local infrastructure, services and community wellbeing,” she said.
Dr Sherlock pointed to rising costs facing homes, businesses, organisations and primary producers such as physical damage, rising insurance premiums, income and business disruption and cultural impact.
“There is a growing financial pressure on council budgets, including costs associated with disaster response, infrastructure repair and resilience upgrades, with local governments having limited revenue-raising capacity,” she argued.
“It should be recognised that passing escalating climate-related costs onto ratepayers is neither fair nor sustainable and risks undermining essential services thus the ‘polluter pays’ principle holds that those responsible for pollution should contribute to managing its impact.”
HOBART’S MOTION
The motion argued that such a fund could help pay for: Disaster response/preparation, insurance relief, flood-proofed homes, upgraded halls and evacuation centres, shaded streets and cool public spaces and well-resourced emergency services.
According to the Climate Council’s Media Centre:
- fires, floods and cyclones cost Australia $38 billion a year or $3800 per household.
- 434 of the country’s 537 councils were hit by climate disasters from 2019-23.
- The Australia Institute says insured losses from disasters rose more than 12 times in 20 years while council revenues grew only three times over that period.
“Councils across the country are crying out for increased funding to manage increased costs associated with emergency management and adaptation,” Cr Sherlock says.
“Hobart supported a similar motion at the Australian Local Government Association general assembly in Canberra, which passed unanimously.
“A Climate Compensation Fund would have a dedicated funding stream for councils to continue to provide the critical infrastructure and services our communities rely on but critically, would not just be funded by taxpayers but by the polluters causing the problem.”
