Senate estimates hearing stoush over bushfire recovery spending

Testy exchange queries Commonwealth government reporting of spending of $716m from its $2bn bushfire recovery fund.

Queensland Senator Murray Watt clashed with Assistant Minister for Finance Zed Seselja over how the government was reporting its bushfire recovery spending

The commonwealth government has spent $716m from its $2bn national bushfire recovery fund, Senate estimates has heard.

The states and territories have spent a further $471.8m, which will eventually be reimbursed by the Morrison government. 

During a testy exchange in Senate estimates on Monday Labor Senator Murray Watt clashed with Assistant Minister for Finance Zed Seselja over how the government was reporting its bushfire recovery spending. 

Senator Watt said it was misleading for Bushfire Recovery Agency co-ordinator Andrew Colvin to claim $1.2bn of commonwealth money had been spent when only $716m had left the government’s coffers.

But Mr Colvin said he disagreed that it was misleading, considering that the money spent by the states had already been delivered to bushfire victims and would eventually be reimbursed by the commonwealth. 

“Isn’t it a bit dishonest to say that the fund has spent $1.2bn when actually, it only spent $717.6 million?,” Senator Watt said. “I accept that you will be spending more but shouldn’t we just be upfront with people and say what’s actually been spent?”

Mr Colvin disputed the claim. 

“I disagree, I think what communities and individuals are interested in is the money that they have been provided or the organisations that have been given the money in my travels,” Mr Colvin said.

“I’m yet to have someone ask me what the accounting treatment is behind the money that is in their account. They’re interested that the money has been given to them.”

Senator Seselja slammed Mr Watt for “completely mischaracterising” the government’s spending and said Labor was “quibbling” over accounting treatments. 

“It has been explained to you, the money has been delivered in some places by the states …,” Senator Seselja said.

“But either way, it is effectively a draw down on those funds that have been allocated by the commonwealth.”

Mr Colvin said that in addition to the National Bushfire Recovery Fund further disaster funding had been allocated to assist affected communities, taking total taxpayer contributions to $1.8 bn.

It was heard that of the 228,361 applications for the one-off Disaster Recovery Payment of $1000, 206,202 were accepted. 

A further 3058 of 4964 applications for the Disaster Recovery Allowance were approved.