Too early to quantify flood impact: Swan

Federal Treasurer Wayne Swan says it's too early to quantify the impact of disastrous floods on the nation or whether there'll be a contraction in the economy in the first half of 2011.

Describing the floods as "in economic terms, the biggest natural disaster in our history", Mr Swan said there would no doubt be an impact on growth.

But he added that the rebuild would also act as a stimulus later in the year.

Mr Swan's comments followed a Brisbane meeting of the federal floods taskforce, which has brought together Australia's brightest business minds to discuss ways to help the flood recovery.

The taskforce is chaired by Mr Swan and among its 10 members are Assistant Treasurer Bill Shorten, Queensland Treasurer Andrew Fraser, trucking magnate Lindsay Fox, Woolworths chief executive Michael Luscombe, Leighton Holdings chief executive David Stewart and Australian Industry Group chief executive Heather Ridout.

Mr Swan said the board would work within the business community to shore up more monetary and in-kind donations to help the state get back on its feet.

"These were very important commitments," he told reporters in Brisbane after the meeting.

"But what was really special about the meeting today was that that community spirit that we've seen on the ground with volunteers over the past couple of weeks was also there in the room today because business understands that responding to a disaster of this size and scale requires an unprecedented commitment."

Several big businesses have already dug deep to give to the Premier's Disaster Relief Appeal, including miner BHP, which gave $10 million.

Meanwhile, Queensland expects to have a clearer idea of its economic standing in the next fortnight.

State treasurer Fraser said he would release the state's mid-year budget outlook, which would contain no new taxes but would predict a slowing of growth in the first half of 2011.

"In terms of a broad hit to the bottom line, obviously those estimates are coming in by councils at the moment and by agencies and certainly we'll be incorporating that number into the budget update," Mr Fraser told reporters on Monday.

He said that damage would be an estimate only, with a more precise number in the June budget.

"This will take not weeks and months to assess and rebuild, but years, and so this will be an event that we will pay for for a long time as a state and as a community," he said.

Mr Fraser said state taxes would not increase. Instead, the government would reprioritise expenditure.

However, he supported a possible federal flood levy to help in the rebuild.

Prime Minister Julia Gillard, who spoke to reporters before the meeting, said she would make a decision on whether to introduce a flood levy when the full extent of the damage was known.

"When I have made those decisions, which I will be doing soon, I will of course be explaining them to the Australian people," she said.

Ms Gillard said the taskforce, with its expertise in transport and logistics, retailing, food and telecommunications, would have a key role.

"There is obviously going to be a role as we work through emergency housing and support to rebuild communities, to look at the sort of in-kind assistance people with that expertise could bring," she said.

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