I have an overwhelming suspicion that Julia Gillard's latest tax and spend policy is not all that wise and is a smoke screen for some agenda. Scrapping several failed policies and increasing the Medicare Levy to get the $5Billion they need to rebuild Queensland after the floods (and sure up the State that really isn't a fan of her Government) is being sold to the electorate as an emotional measure that is necessary for the victims of the disaster.

There has been incredible damage to the infrastructure of the state and that does need huge amounts of money, however Labors record on spending initiatives, like the several being scrapped today, are often rorted by those who use the system to get taxpayers dollars they are not entitled to...not to mention just the inherent waste that has been a hallmark of labors massive spending measures. The tragedy of this poor decision, or more pointedly its marketing, is that people who have given so generously will feel double dipped by a unprepared government who seem unable to look after its citizens and manage its spending.

My personal belief is Zonal Taxation should be introduced to disaster zones to give taxation holidays for businesses to stimulate the economies and employment prospects of these areas.

Governments also have a responsibility, as we citizens have privately have, to have a Disaster Relief Fund set aside for the huge financial constraints put upon the economy every now and again, a fund that would require 2/3 of Parliament's agreement to access to keep it from political recklessness and partisanship. The problem is the Disaster Fund the government does have is clearly not big enough and considering this government is hell bent on telling us that we are heading into a time of disasters thanks to man made climate change you would think that would be a priority.

The Government has done a stella job of helping people out in the days and weeks after the floods ploughed through Brisbane, which is a good thing, though it would have been appreciated much more had it happened when an area the size of Germany and France was affected before the capital city was hit....and Eastern Australia's Farmers had their first decent wheat crop in 8 years wiped out, not to mention the vegetable and fruit farmers that have lost any chance at a summer income and both left with constraints to be able to bounce back which will ricochet through the food chain. It is constraining these domino effects before they have a major ongoing effect on the economy that is essential for a well meaning government that uses fiscal policy to alter the major peaks and troughs in economic fluctuation.

Whilst I think it is important to give foreign aid, I totally believe that aid should be diverted where possible back to Australia's disaster zone, not for selfish reasons but for the continuance of the foreign aid spending ability of Australia...(the more ability we have to make money the more able we are to give it to others).