“This signed agreement means we can get $2 billion in Commonwealth money out the door and into Queensland communities where it is needed right now,” Treasurer Wayne Swan said.

“This agreement paves the way for the advance payment of the $400 million to local councils as was previously announced,” said Queensland Premier Anna Bligh said.

“This national partnership also includes an additional upfront payment of $50 million from the Commonwealth to facilitate the recovery process in North Queensland following Cyclone Yasi.”

The necessary rebuilding effort after the devastating wet season could further drain the state of skilled tradespeople, intensifying the skills crisis facing Queensland’s mining and energy industries.