Anne Webster (Mallee, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management. Will the minister outline to the House how the Morrison-McCormack government is working to build resilience in communities that have been affected by drought, including in my electorate of Mallee.

David Littleproud (Maranoa, National Party, Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management) Share this | Link to this | Hansard source

I thank the honourable member for Mallee for her question and for the leadership of her community through one of the worst droughts in our nation's history and in Mallee's history. While a lot of attention has rightly been on the devastating fires this summer, we as a government have not forgotten those impacted by drought, with our over $8 billion response to this disaster that has spread like a cancer from one side of this country to the other.

Only last week, the Prime Minister and I went to Orange to meet with the new drought advisory committee led by Shane Stone, to make sure that the commitment that we as a federal government have made is hitting the mark and getting money out there and supporting our three-pillar national drought strategy, while also making sure that there isn't duplication with the states, because the states also have a responsibility in this. But our three-pillar strategy is having an impact.

The first pillar is around the here and now: putting money in farmers' pockets through the farm household allowance, giving them the respect of being able to put household items and food on the table, to live with dignity and to make decisions with the help of rural financial counsellors. Through the Regional Investment Corporation we have introduced new loans of $2 million for farmers and $500,000 for small businesses, which will mean they will pay no interest and make no repayments if they refinance their debts from commercial banks to the Regional Investment Corporation. We are taking that out of the big banks' pockets and putting it back into farmers' pockets.

The government understand the drought extends past the farm gate; it goes to the communities that support them. Last week we announced another 52 shires that can apply for up to a million dollars under the Drought Communities Program to stimulate these local economies, the small businesses in these towns, and get new money flowing through these communities. Also, in terms of education, with children going back to school, we are taking the burden off the cost of education with another $10 million to help families pay for those education expenses, to take that burden away at the start of this year.

The Morrison government is also the first government to look to the future with drought. We have created a new future fund. In fact next week, that plan, the future fund plan that will give a dividend of $100 million a year, will be presented to this parliament. This is a plan that the parliament will decide on, not politicians; it will not be a political decision. This is about making sure it is done in an equitable and proper way.

The government are also investing over $3 billion in dams. We are looking to the future to try and build resilience. We have got the money on the table and we are asking the states, which have the constitutional responsibility to build the dams, to work with us hand in hand. We have also asked them to come with us and pay the rates of small businesses and farmers, and remove payroll tax in these drought-affected communities. The states have a role to play to support and complement what the federal government has done in its commitment to supporting regional and rural communities. Our national drought strategy is just about making sure these communities not only survive but thrive when it rains.