Bushfires: Scott Morrison’s $2bn pledge to do ‘whatever it takes’

Scott Morrison says he’ll do ‘whatever it takes’ to get bushfire-ravaged communities back on their feet.

Scott Morrison, centre, with Deputy PM Michael McCormack, left, and Treasurer Josh Frydenberg in Canberra on Monday. Picture: Getty Images

Scott Morrison has vowed to do “whatever it takes” to get bushfire-ravaged communities back on their feet, declaring the recovery effort is more important than his government’s budget surplus as he announced an initial $2bn reconstruction fund.

The new National Bushfire ­Recovery Agency will use the money to provide grants to farmers and small businesses, deliver mental health support and rebuild roads, bridges and telecommunications infrastructure.

The Prime Minister said the funding, approved by cabinet on Monday, was in addition to existing disaster payments, “and if further funds are required, further funds will be provided”.

Amid a backlash over his handling of the bushfires that have claimed 24 lives and more than 1800 homes, Mr Morrison said he was not concerned by the impact of the crisis on the budget, which was forecast to go back into the black with a $5bn surplus this year.

“The surplus is of no focus for me,” he said. “What matters to me is the human cost and meeting whatever costs we need to meet.”

The federal assistance came as Victorian Premier Daniel ­Andrews announced a $50m commitment to the state’s new bushfire recovery agency.

The commonwealth paid out $5.6bn in assistance over six years following Cyclone Yasi and the Brisbane floods in 2011 — a figure that is likely to be exceeded by the current disaster that has razed more than seven million hectares across six states.

Economists said they were ­unable to put a figure on the potential hit to GDP, saying the national disaster was unprecedented.

However, Treasurer Josh Frydenberg revealed insurers had ­already received about 6000 bushfire-related claims totalling nearly $400m. He said he would work with the insurance sector at a meeting on Tuesday “to see what can be done to get that money back into people’s pockets as quickly as possible”.

Police confirmed on Monday that a man, 71, from Nerrigundah became the eighth person to die in NSW as a result of the fires.

Rain and mild weather offered a reprieve for firefighters across much of southeast Australia on Monday, with 20 fires at “watch and act” level but none requiring emergency action.

However, conditions are set to worsen later in the week, with temperatures in northern NSW and southern Queensland forecast in the high 30s to low 40s, and Victoria and southern NSW facing tougher conditions by the weekend. With the crisis far from over, former foreign minister Julie ­Bishop added to the pressure on the government, calling for Australia to show greater leadership on climate change. “Countries do look to Australia for direction for guidance and leadership,” she told the Nine Network.

“We don’t have a national energy policy in this country and a national approach to climate change … we are part of a global ­effort. If a country like Australia fails to show leadership, we can hardly blame other nations for not likewise showing leadership in this area.”

But Mr Morrison said the government would stick to its climate change policies, and would “meet and beat the commitments we have made for emission reductions”.

Mr Morrison has faced a barrage of criticism over his response to the fires, including by some in fire-affected communities, after taking a family holiday in Hawaii and socialising with the Australian cricket team at Kirribilli House when the fires were raging. However, former prime minister John Howard said the attacks were “completely misplaced”. “He’s done all the right things, he’s dealt with the issue of his holiday and since he’s been back he’s hardly drawn breath,” Mr Howard told Sky News.

Deputy Prime Minister Michael McCormack said the assistance would help farmers restock, replant and rebuild. The package will include funds to draw back visitors to tourist towns and help restore local environments and affected wildlife. In the short term, the government will establish at least 20 “pop-up” offices in affected towns to support the delivery of payments.

People and businesses in affected areas will get a two-month deferral for the lodgement of tax payments, while the government will also suspend debt collection activities for welfare recipients.

Opposition emergency management spokesman Murray Watt said Mr Morrison had been “slow to act” on the emergency, but said Labor welcomed the recovery funding.

Former Northern Territory chief minister Shane Stone, who headed the North Queensland Livestock Industry Recovery Agency after serious flooding in January and February last year, said the recovery effort from the fires would be far bigger. He said his agency helped farmers deal with “loss of business”, while the bushfires had seen entire farms “burnt to the ground”.