⏱️This edition of the National Account’s newsletter is a six-minute read.
👋 G’day everyone, Archie here.
Local councils, particularly in the regions, they're not usually flowing with cash. They do it tough a lot of the time
🗣️ Why did she say that?
Local councils on the Mid North Coast of New South Wales are falling into debt and ratepayers are footing the interest bill. The state government will eventually reimburse the millions already spent on disaster recovery – but until then councils have to make ends meet.
This week, I caught up with the Mid North Coaster’s Ellie Chamberlain, who told me that councils often begin repair work in the immediate aftermath of a disaster with the expectation the state will cover the costs.
In one case, a council is still waiting to be reimbursed $37 million.
The funding gap means projects the money would have been spent on are delayed.
Watch the full interview here:
Is the European summer cancelled? 🛬
What happened?
The war in Iran - which has spread to numerous countries in the Middle East - has already claimed at least 2,000 lives, and left many seriously injured.
Following attacks launched by Israel and the US, Iran has blocked 20 percent of the world’s oil supply, raising petrol and energy prices around the globe.
This is expected to impact inflation, which in turn may lead to the Reserve Bank in Australia raising interest rates.
International travel
Due to the conflict, there is a huge question mark hanging over key international travel routes.
To get to Europe, many Australians flying with carriers such as Emirates, Etihad and Qatar have to transit through Dubai, Abu Dhabi or Doha.
Dubai International - the home of Emirates Airline - is one of the world’s busiest airports, and faced drone attacks from Iran overnight Wednesday.
The airport is still operating, but the situation is fluid.
Already booked?
If you’ve already got travel booked, the government’s advice is not to cancel your flights until you speak to your travel agent or airline.
If you cancel, you could lose your right to a refund or rebooking. Your travel insurance may not cover voluntary cancellations.
Insurance
In 2024, financial comparison site Finder looked at 22 travel insurance policies and found none of them covered acts of war.
Airlines might waive change fees or offer credit if flights are cancelled.
Professor of Aviation at Edith Cowan University, Gui Lohmann, told SBS that those planning trips to Europe in the next month or so should seriously reconsider.
He also said people need to think about the fact that things do not always go according to plan, and you could end up stranded in another country.
Asia, US loading
Other recommendations include paying extra for refundable flights and avoiding routes through the Gulf. Instead, consider travelling through Asia or North America.
Jet fuel
Iran’s closure of the Strait of Hormuz has choked oil supply, and that means airlines will pay more for jet fuel.
It has reportedly increased by up to 150 per cent over the past fortnight, leading Qantas and other airlines to announce increases to airfares.
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Thanks for catching up with me. I hope you enjoyed this issue, and I’d love to hear your thoughts. Just reply to this email and I’ll be on the other side 👋
I’ll be back on Monday.
Cheers, Archie