$2.3bn for disaster recovery in budget amid ‘money left off books’: NSW Treasurer
The NSW government has announced an extra $2.3bn to shore up the state’s defences against natural disasters and provide ‘vital’ relief after last year’s generational floods in northern NSW.
The NSW government has announced $2.3bn in disaster recovery cash will help shore up the state’s defences against floods and bushfires, fix its water-damaged roads and provide “vital” relief to those impacted in last year’s generational floods in northern NSW.
NSW Treasurer Daniel Mookhey has revealed that $2.3bn for disaster recovery, repair and relief will be included and accounted for in Tuesday’s budget – state Labor’s first in 13 years.
“This announcement gives funding security to people and communities still recovering from disaster,” Mr Mookhey told The Australian.
The funding will cover the next five years, inclusive of the funding already committed and spent since the Minns government took office in March.
Of the $2.3bn in additional funding in Tuesday’s budget, the vast majority will go towards the main umbrella disaster relief programs.
About $1.6bn in additional funding will go towards the Disaster Relief Account, to meet extra demand for natural disaster assistance, which is eligible for co-funding from the federal government under the Disaster Recovery Funding Arrangements.
More than $578m will be for additional post-disaster restoration of damaged state roads.
Within the $2.3bn, the state government previously announced in September that about $120m would go towards the newly established NSW Reconstruction Authority.
The remaining $10.3m is election commitments that have now been funded, including $5m this financial year in grants for Lismore-based recovery services, $3.3m across the next three years – inclusive of 2022-23 – to invest in better disaster-detection systems across high-risk areas, and $2m in grant funding to Tweed Shire Council to fund resilience and mitigation projects.
However, the Treasurer said – upon entering his new office and commencing a line-by-line review – it became clear to the new government that their predecessors did not account for disaster recovery funding before the state election.
“The former government did not make provision for this disaster recovery funding before losing office,” Mr Mookhey said, telling The Australian on Saturday that he inherited about $7bn worth of “unfunded expenditure and missing money”, which included disaster recovery funding.
“It’s yet another example of where the government has had to find funding for critical programs left off the books,” he said.
Lismore NSW MP Janelle Saffin, whose home was destroyed in the 2022 floods, said the funding was an “absolute relief”.
“It’s comforting to know the money is there and comforting for our communities, it will allow them some certainty,” she said.
Ms Saffin, who conceded she’d “advocated a lot” for more funding for flood-impacted northern rivers communities, said she had apprehension previously whether the money was there for disaster recovery.
“I was personally never certain (under the previous government) it (funding) was there, it’s a relief to know it is,” she said.
The $120m set for the NSW Reconstruction Authority follows the body absorbing the Northern Rivers Reconstruction Corporation. When that funding was announced earlier in September, Premier Chris Minns said it was important to protect the state’s future against more disasters.
“We know future natural disasters aren’t just a remote possibility – more are coming,” he previously said. “It’s why we need to invest now to reduce the risk to communities, and be ready and prepared to respond when disaster strikes.“
The Treasurer said the government would be funding further disaster recovery efforts and programs throughout the year, in partnership with their federal counterparts.
Mr Mookhey will hand down the state budget on Tuesday.