Cormann downplays reports of Coalition tension

Mathias Cormann has downplayed tensions within the Coalition after a split emerged over its drought funding strategy.

Senator Mathias Cormannn (minister for finance) speaking at the inaugural Risk Advice Summit in Sydney. Picture: James Gourley/The Australian

Finance Minister Mathias Cormann has downplayed tensions within the Coalition after a split emerged last week over the party’s drought funding strategy.

Senator Cormann defended the partnership on Sunday, ­describing the union as “very strong” and “we are a very strong, united, effective ­Coalition … I mean in the Senate we get a lot of work done together. We’ve got a very good relationship,” he told Sky News.

The government Senate leader refused to be drawn on whether Scott Morrison would back a $1.3bn drought plan leaked by Nationals MPs last week, which would require a 50-50 funding split with state governments.

The key policy recommendation was a proposal to set up community committees in drought-affected shires to oversee a $10m cash pool.

Senator Cormann said the government was planning on announcing further assistance measures. “As the drought continues and the impact … continues to worsen, the government will continue to assess what else and what more we can do to support families,” he said.

The ongoing public and internal debate inside the Coalition over the government’s drought response comes after colleagues aired complaints about the performance of deputy Nationals leader Bridget McKenzie in a partyroom meeting on Monday.

Nationals MPs have also expressed anger over One Nation leader Pauline Hanson claiming credit for the implementation of a new dairy industry code.

Senator Cormann said he had been “surprised” by complaints he had got “too cosy” with Senator Hanson over her calls regarding dairy re-regulation.

The Prime Minister is weighing proposals from the ­Nationals and the National Farmers Federation — both ­released last week — before ­announcing an enhanced ­national drought strategy.

NFF president Fiona Simson said its policies, which include an “exit package” for farmers wanting to leave the land, was a step forward from just acknowledging drought conditions. “It sets out roles and responsibilities … and talks about a framework where we … think about drought and review and assess the measures in drought,” she told ABC News on Sunday.

The NFF proposals also call for council rate relief for drought-hit farmers, federal ­sub­sidies equal to the Newstart ­Allowance for payroll expenses, and ­more support for children in isolated areas and rural schools.