BARNABY JOYCE:
Thank you very much Paul, for welcoming me to your electorate. Look, it's an absolute pleasure and an honour to have the Treasurer of the Commonwealth of Australia, Josh Frydenberg. Josh and I go back a fair way and this guy is really across his game. We are so lucky to have him on board and I reckon he's going to do a great job for our nation. I'd also like to acknowledge a person I've known for years and years and years, and that is David Littleproud – very across the drought because his own seat in Maranoa is (indistinct) and having him here and Josh here is just so good because they're here because they care and they want to make a difference and we're going to give them every opportunity to hear the issues that we think are so important. But right at the start I'd like to introduce Nicky from the Chamber of Commerce, because Nicky knows more than most about exactly how a drought affects people in a country town, Nicky.
NICKY:
Thank you very much. So ultimately for us at the moment, our small business community is really struggling so we aren't seeing the extra revenue within the community. With that, what we're finding is any opportunity for cash injections, so the funding that we've received through various drought programs that has gone out as vouchers to our farmers has meant that it's new money into our community that we've lost with the impact of the drought. So, it is that new money that we're needing and we're seeing a lot of businesses at the moment having to hold onto staff or having to make that really difficult decision to cut back. So, we need people to come and spend money in our regional communities and make a difference. You'll be shocked at how much of a difference having a weekend in Inverell would be instead of going on an overseas trip. So, come to these regional communities, spend your money and make a difference in these small businesses lives.
BARNABY JOYCE:
Okay. I would now like to introduce, well I don't need to introduce him because everyone knows who he is.
DAVID LITTLEPROUD:
Well thanks Barnaby, and it's great to be in your electorate and can I say it's great to have Josh with me. The Prime Minister made it clear to all Cabinet yesterday that they all have to get out and come out and kick the dust. They have to come out and understand the impacts this drought is having, not just on farmers, but on regional communities. To get an understanding of the human toll as well. And the Prime Minister has led the way. Three days after being sworn in he was in my electorate at Quilpie and he continues to come back. In fact he was in Dalby – straight off the plane from New York only on Friday. We are taking this seriously, we continue to be agile – not only in the here and now, in listening and learning from businesspeople, understanding that the drought goes beyond farms and what do we need to do to make sure that we don't lose that human capital, that precious human capital that are keeping these towns together, particularly in the small business sector. But then what do we do for the future as well? We've got a Future Drought Fund, but we need to look at the infrastructure. Our job as a Federal Government is to put the environment and the infrastructure around its people. We put the environment around nearly $2 billion in the here and now in support for drought-affected communities and farmers. A $5 billion future fund. But the infrastructure, the infrastructure is about us making sure that we can protect these communities, not only for agricultural production but also for urban amenity. We are going to see a 37 per cent reduction by 2030 in storage capacity of (inaudible) megalitre per person in this country unless there is a serious plan. It is up to the States to do that. We stand ready to work with them to make sure that we have the water infrastructure to support these communities and to support agriculture, but they have to come with us. We have led the way and we want to go further with them and we will. So this this is a learning and listening exercise and to have the Treasurer – the man that gets to sign the cheques, that's got the keys to the cheque books. That's why I've got him out here over the next couple of days to come to listen and learn from great people like Nicky that have invested themselves, who have taken the biggest risk you can take in this nation is to put yourself, your family's finances on the line and have a red-hot crack in running a business in regional Australia.
JOSH FRYDENBERG:
Well thanks very much Mayor. Thank you very much Nicky from the Chamber. Thank you Barnaby, not just for your passionate and effective advocacy on behalf of the people of New England but for the great expertise and experience you bring to these really challenging issues like drought. And to David, thanks for your leadership in this critically important area of the economy, namely our regional communities. The drought is the worst in living memory for the people who live in Inverell and in other areas across our great country. And the hurt of the drought is not just to the economy, but it's actually to the people who live here. It's not just the farmers who are affected, it's the small businesses that Nicky was explaining to us that are really doing it tough. It's to the local car dealer, it's to the people who work at the café, it's to our real estate agents that we've just had the opportunity to sit down and talk to. There are some really innovative programs that are underway and groups like Rotary are using vouchers to give to the farmers who can then spend that money; not on multinationals outside the street, not outside the community, but actually who are living and working within these communities. That is making a real difference. And most recently, they gave out vouchers worth $30,000 and more is to come.
From the Commonwealths perspective, we're focusing on a range of initiatives; income support, financing of new infrastructure projects, backing local governments, as well as those not-for-profit organisations. So, we have done a lot, we are continuing to do more. The Prime Minister has just announced $100 million last Friday when he got out to those drought affected communities off the plane from the United States. This is a really important opportunity for David and I to get around parts of New South Wales and Queensland and talk to the communities about how we can help them. This is all about them. It's all about ensuring that their resilience, their confidence is maintained in the future of their communities which are so, so important to the strength of our great country.
BARNABY JOYCE:
Rightio. I imagine you want to ask a thousand and one questions of Josh about everything but the drought.
JOSH FRYDENBERG:
(Laughs). No no drought first.
QUESTION:
Treasurer, do you endorse Nicky's call for people from the cities to come and have a long-weekend or a break in the regions?
JOSH FRYDENBERG:
Absolutely. I know from our colleagues in Canberra who represent those communities in the drought affected areas, they are also encouraging our colleagues and everyone to get out, spend money at local small businesses and to send the message far and wide that if people can take a trip to these areas, spend money in those communities, back the small businesses, then that will be important in helping them stay on their feet.
QUESTION:
Treasurer, many regional advocates say the support packages are very welcomed but they're calling for specific taxation measures, payroll tax in particular. Is that something that is on the table, will you consider that?
JOSH FRYDENBERG:
Well, firstly, payroll tax is a state tax. What we have focused on is getting money to the communities who need it and we've done that through income support. We're doing that through local government support and we've just heard from Nicky how it's working with the money that we're providing to groups like Rotary as well as their own initiatives. So we'll continue to look at new ways to support local communities but we have a variety of measures that we have already introduced and they are having the right impact.
QUESTION:
You said this drought is the worst in living memory, when will you declare the drought a natural disaster so that people can actually get the financial support they need.
JOSH FRYDENBERG:
Well, we are providing them with support and we will continue to do more as required because these communities are so critical to the health of the Australian economy and to the health of the nation. Because whether you live in the big cities or whether you live in the regional areas, you want these communities to thrive and everyone has a vested interest in Australia continuing with its strong agricultural production and with these regional areas being able to get through what is a very difficult time.
DAVID LITTLEPROUD:
I can answer that. Let me just say that drought has its own classification. It is different to a cyclone or a flood, because in a cyclone or a flood infrastructure's damaged. Drought creeps up and it destroys the landscape in a slower way and people de-stock and effectively it's a different mechanism so we have given it its own specification. And that's why the programs that are targeted towards drought is different to those in cyclones and floods because they are programs predicated for the rebuilding of infrastructure. Fences, houses that have been knocked down. This is about rebuilding communities, about rebuilding farms, rebuilding stocking levels, getting farmers back up to replanting. So to put it all into one bundle would not give it the respect that it deserves, the sophistication of the response that's required from a Federal government and from a State government and that's why we've made sure that we've given it its own specification, and that's why we've committed now, over $7 billion towards this drought. And we say to the States, natural disasters, whether they be cyclones or floods, we have a partnership with them. With drought we respect they have a partnership with us, there's an intergovernmental agreement on that and we expect them to live up to their responsibilities as we are living up to ours. We need to see more State politicians out on the ground, like you're seeing Federal politicians.
QUESTION:
Minister, with regard to State responsibilities, places like Inverell are running seriously low on town water with emergency bores and other emergency infrastructure now being required. Has the NSW Government been too slow to act given that these areas have been in drought for nearly three years now?
DAVID LITTLEPROUD:
Well, look since Federation it has been the responsibility of the States to manage resources. Our forefathers gave them that responsibility. Under the law I can't pick up a shovel in this country and dig a hole unless the States allow me to. Their job is to plan, and as I said earlier, we will see a 37 per cent reduction in urban water supply, per person by 2030 unless something is done. Planning is their responsibility. We've seen 20 dams built since 2003, 16 of those have been in Tasmania. Now we stand ready, $3.2 billion has been put on the table. We're not saying even though it's not our responsibility we're going to take a backwards step on this. We've forward-leaned into this. We've put $3.2 billion out there and Tassie are the ones that have come and taken the money. So what we say to the States is we need you to lead. We need you to work with us. We are standing ready to work with you and I know that NSW, I think, has started to show that leadership in the last month and there will be announcements, I understand, in the very near future around them leading the country around new infrastructure. And I think that takes leadership. I don't care about the blame, no one cares about that in Inverell, they just want to hold (inaudible), they want storages there so that they can turn their water on down the main street, so they can fill up their jug to have a cup of tea. I mean that's what every Australian should have, that's what a first world nation should have and that's where the Federal Government will stand ready with any state that wants to take our hand.
QUESTION:
The PM said he was going to fund some dams when he came back from the US. What's happening with the funding?
JOSH FRYDENBERG:
Well, we have put money aside for major water infrastructure projects like the dams and we also know, and Barnaby can speak to this, the Chaffey dam is being extended with the work that we've done at a Commonwealth level. So, we are investing in water infrastructure. But we do, as David said, we need the support of the states. There is a constitutional authority here that rests with the states and we are ready to partner with them in building that water infrastructure.
BARNABY JOYCE:
Obviously people know that if we hadn't extended Chaffey Dam, if we didn't have the desire at a Federal level to push through on the EPBC requirements, where it's being held up because of the Booroolong frog, but if we hadn't of done that, we would now have Tamworth without any water. So, that goes to show the desire that has been held for a long period of time at a Commonwealth level to get these dams built and I commend Josh and David and, of course, the Prime Minister. Yes we do want dams built and we need further water infrastructure. We need it because we need the commerce that with constructing it and we need to deal with, as weird as this sounds, not this drought but the next one, which we know after it rains will come. By that time, we want to be more prepared and we will do it with the dedication of these two gentleman.
QUESTION:
But Barnaby, you've been talking to me about dams since 2013 and I haven't seen one built yet.
BARNABY JOYCE:
That's because I'm a very persistent advocate and I would like to commend myself on my persistent advocacy. But of course, we've got $75 million on the table for Dungowan dam, $75 million on the table! The other day I heard they wanted $23 million of it for further studies. I mean, fair go! We don't need anymore paperwork, we need dozers in the ground. But that is in the realm of the states and I call on the states and the federal government and the local government to get together to do an audit of the regulations, audit of the legislation and make sure we can streamline this so we can get started. Because this guy here wants to build dams, this person here wants to be the Treasurer of the country that is stronger and we've got money on the table and I'm looking forward to the Prime Minister coming back and taking a lead role to get these dams built and I know the Prime Minister can do that. Might I just say in closing, Mr Albanese said at Dubbo that he would do anything that is required to help with the drought, anything. That was Mr Albanese's statement. I hold Mr Albanese to that and in fact, I respect him. I respect him as a man to say that because we are going to have to call on him to help us to iron out the regulations and the legislation to get these things moving.
QUESTION:
Minister, you've again used that $7 billion figure that Joel Fitzgibbon sent to the auditor-general. That's $5 billion for a fund that will be up to 5 billion by 28/29, 1 billion for the RIC which has given out 69 [indistinct]. How much money has actually gone out of Federal government coffers and into farmers' hands?
DAVID LITTLEPROUD:
So there are, the commitment that we have made as I have always said is $7 billion. The reality is they are budgeted items and some of those programs have not been fully taken up. They are demand-driven, whether it be FHA, whether it be RIC loans. $144 million alone has been put out in NSW in RIC loans. They will continue to evolve. So our commitment is about having an amount there, that is there to support these communities get through this drought. They will be taken up as they are required, they will continue to be spent. That is why our government has continued to be agile around the money that we have spent and a commit that is ready and is raring to go as soon as those farmers need it. That is the important aspect of this and that's what we'll continue to make sure, that the agility of this government continues to make sure that money's available to go. A cheque can be written when it's needed and can hit the ground, can hit a farmer's kitchen table as soon as it's needed.
QUESTION:
So of the $7 billion, how much has hit the ground now?
DAVID LITTLEPROUD:
Look, I don't have that on me, I'm sorry, I'm happy to give you those numbers. I've got nothing to hide. We're very proud of the fact that this federal government has stood shoulder-to-shoulder with farmers and regional communities to make sure that we are keeping them going through this drought. Because let me say, we shouldn't talk ourselves down either. These great people that when it does rain, they're going to make a quid. We just need it to rain, because the agricultural sector, the foundation box around the trade agreements that we put in place, will mean farmers are going to make money and if we get those seasons, and these good people in these small businesses are going to get the money as well. We have nothing to hide, we are happy to put numbers out. We are so proud of the fact that we have stood shoulder-to-shoulder and we hope that the state governments would do the same with us.
QUESTION:
Treasurer, just one final one. Just today the court case about the signs during the election campaign in Chinese language in your electorate and other Melbourne electorates, is back in court. What is your reaction to today's developments?
JOSH FRYDENBERG:
Well, it's just going through its normal processes so I will just leave it to that but I do point out that the AEC said on the day that the signage was in accordance with the rules. We know that the Labor Party have used purple signs written in Chinese. We know that many candidates, independent and indeed for the major parties, particularly the Labor Party, have used the colour purple. This is a bunch of sore losers who are bringing these cases and let it play out in the courts and be dealt with appropriately in that way.