The latest report has indicated that the cost of natural disasters in Australia has increased to 50 percent more in 2016, which was recorded as $9 billion in 2015.
The Australian Business Roundtable for Disaster Resilience and Safer Communities report also claimed that the cost will increase to $33 billion by 2050. The result was estimated after ignoring the effects of climate change, according to The Guardian. However, when factors like effect of mental health issues, alcohol misuse, family violence, chronic disease, etc. were taken into consideration, the figure seemed to increase to over 350 percent in 35 years.
“This report is the first time that analysis into the economic cost of the social impacts of natural disasters has been conducted,” Australian Red Cross director of Australian services Noel Clement said. “Governments, business and communities need to work together to address the medium and long-term social impacts of natural disasters through further investment and research.”
The report has considered the findings of the reports presented by the Productivity Commission and Infrastructure that has recommended expenditure of more money to natural disaster resilience than the recovery. The government is subject to implementing the amount. “The reports show the long-term cost of the social impact of natural disasters on our communities and economy, and the benefits of embedding resilience into planning decisions for critical infrastructure,” the managing director and CEO of insurer IAG, Peter Harmer said on behalf of the Roundtable.
“We need to do more to help our communities prepare for and recover from disasters. Sadly, the devastation of bushfires, flood and earthquakes on our communities can last for years, if not decades.”
According to the Sourceable.net, the Queensland floods of 2010-11, the Victoria bushfires on “Black Saturday” in 2009 and the Newcastle earthquake 1989 have incurred expenditure that indicate social costs are as valuable as tangible costs, including loss of expensive property.