The cost of insurance and the need to mitigate against weather hazards are impediments to the development of northern Australia, according to the federal parliamentary committee investigating the issue.

The Committee on Northern Australia’s interim reports says insurance availability is another barrier.

Public hearings in WA and Queensland were told of huge premium increases and businesses that cannot obtain cover.

Committee chairman and north Queensland Liberal MP Warren Entsch told Parliament the inquiry has created high expectations and has received 287 submissions.

It will hold more public hearings in Queensland next month and is due to deliver its final report by July 6.

Mr Entsch says the second half of the inquiry will identify development projects and strategies, plus ways to remove barriers.