Commonwealth says current drought spend can’t be compared to millennium disaster
Commonwealth spending on direct drought assistance in the past five years is lagging well behind the $5.7 billion cash splash which aided desperate farmers during the millennium disaster.
NSW
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Commonwealth spending on direct drought assistance measures in the last five years is only about 15 per cent of the cash and grants handed out to farmers during the millennium drought.
The Daily Telegraph’s analysis of spending on drought assistance including interest rate subsidies, relief payments, farm help income support and financial counselling by the Howard and Rudd governments between 2001 and 2009 totalled more than $5.7 billion — or $7.03 billion adjusted for inflation today.
But between 2014 and 2019 the federal government has spent just $970 million for comparative measures such as the farm household allowance and drought communities program.
The Coalition has instead focused on longer term measures such as its $5 billion Future Drought Fund and handing out more than $1.09 billion in loans and non-grant assistance to farmers.
The Drought Fund currently totals about $3.9 billion and will be reinvested until it hits $5 billion in about a decade, with $100 million to be administered each year for future drought proofing initiatives starting in July 2020.
Drought, Natural Disaster and Emergency Management Minister David Littleproud defended the government’s approach and said the current drought could not be compared to the millennium drought.
“Current drought has been prolonged in isolated regions and is ongoing while during the Howard and Rudd eras drought was both prolonged and widespread,” he said.
Mr Littleproud said the Drought Fund was a “landmark approach” to build resilience.
The current dry conditions hurting Australian farmers and regional communities — including about 97 per cent of NSW — are not as widespread as the early 2000s drought, which also impacted South Australia and Western Australia.
However NSW Water Minister Melinda Pavey said the “critical situation” should not be understated.
“This drought is outside the history books,” she said.
“The inflows into many of our state’s arterial rivers are the worst on record, and the temperatures the highest.”
Ms Pavey said the state government had already fast tracked $130 million in infrastructure projects including water carting and emergency works projects to ensure communities have sustainable water supplies.