$5b drought future fund to be put aside for ‘non-rainy days’

A $5 BILLION fund to safeguard and support regional communities from crippling effects of droughts into the future will be unveiled today by the federal government.

A $5 BILLION fund to safeguard and support regional communities from crippling effects of droughts into the future will be unveiled today by the federal government.

Prime Minister Scott Morrison will propose the nation’s first Future Drought Fund at a summit to address the fallout from record low rainfall across the east coast of Australia.

Farming communities in parts of eastern and northern Victoria are already dealing with drought following the driest September on record nationally and the second driest on record in the state.

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Year-to-date rainfall has been the second lowest on record since 1900 within the Murray-Darling Basin, third lowest for New South Wales and eighth lowest for Victoria.

The Bureau of Meteorology has forecast a 70 per cent chance of an El Nino weather event developing, bringing an increased possibility of a dry and warm end to the year.

It is likely to raise the risk of heatwaves and bushfire weather across the southern states over summer.

Farmers in east Gippsland have been forced to buy hay and hand feed their stock after 12 months of low rainfall Picture: Ian Currie

Mr Morrison said the government must “deal with the here and now” but plan to put money aside for “non-rainy days in the future”.

“This funding will support farmers and their local communities when it’s not raining,” Mr Morrison told the Herald Sun.

“It guarantees drought support for the men and women who drive our nation.”

He said the fund would help deal with the challenges of drought, which varied from farm to farm and town to town.

Beginning from July 2020, the fund will make about $100 million a year available to guarantee support to farmers, non-government organisations and communities to prepare for and respond to the impact of drought.

It will be established with an initial $3.9 billion injection, growing to $5 billion in 2028 and be managed by the Future Fund Board of Guardians.

Prime Minister Scott Morrison and Agriculture Minister David Littleproud in drought ravaged south west Queensland in August. Picture: Pool

It comes on top of $1.8 billion in support and measures that have already been announced for farmers and their communities.

The Council of Australian Governments will also consider a new national drought agreement by the end of the year.

Today’s summit will include representatives from all levels of government, the farming and agribusiness sector, banking and finance services, community and charitable organisations.

Mr Morrison said the drought was one of his biggest priorities after taking office in August and he had toured western Queensland which had been dealing with low rainfall for six years.

“Despite the most trying of circumstances, it was the strength, resilience and hope of the families that struck me most. “It was palpable,” he said.

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