DAVID KOCH:
Treasurer, good morning to you. Big announcement…
JOSH FRYDENBERG:
Good morning Kochie.
DAVID KOCH:
Big commitment, $2 billion. Prime Minister says, look it could reach $5.6 billion as big as the Brisbane floods and Cyclone Yasi, so are you kissing goodbye to the surplus?
JOSH FRYDENBERG:
Well the surplus has never been an end in itself, its all been, always been about disciplined economic management so that we would have the flexibility to respond to economic shocks whenever they occur. Now certainly these fires are unprecedented, it’s going to take some time to rebuild the communities. It’s going to require significant contributions not only from the Federal Government but also from the state governments and this is an initial and additional $2 billion over and above some of the existing payments and allowances that the Commonwealth already makes to those communities in need.
SAMANTHA ARMYTAGE:
Okay, so Treasurer how is this fund going to work? I’ve heard that this, this money will start to flow immediately, how will it get out to the people who most need it?
JOSH FRYDENBERG:
Well as you know we’ve established a new National Bushfire Recovery Agency under the leadership of former AFP Commissioner Andrew Colvin, he’ll be working with the responsible Minister, David Littleproud and the states identifying priorities. Then that money will be approved and it will go to local councils, small businesses, for mental health support projects, community infrastructure, both social and economic as well as environmental protection particularly for much of the wildlife that has been so badly damaged and hurt in these bushfires.
DAVID KOCH:
Okay. Treasurer, cause this is the problem isn’t it, when you set up these things and get public servants and all levels of government involved, it just takes so long and then the money doesn’t end up being spent. As Sam was saying, it’s got to get out there now. Now Michael McCormack is saying you’re going to set up twenty sort of like pop up stores in affected areas so people can get in there quickly and start claiming some of this money.
JOSH FRYDENBERG:
Well that’s for Services Australia and that’s ensuring that people get those allowances and payments as quickly as possible and those adults who have been affected by the bushfires get an immediate $1,000 non-means tested, non-taxable payment…
DAVID KOCH:
...Will your $2 billion link into that?
JOSH FRYDENBERG:
That’s on top of that…
DAVID KOCH:
…No, no they can start getting information about how to get a part of your $2 billion assistance?
JOSH FRYDENBERG:
Andrew Colvin is providing all that information through the Bushfire Recovery Agency and we’ll be working with the states. I’ve already had discussions with my Treasury counterparts to work through some of the details but we’ll be having more announcements in coming days. Our focus, Kochie, is to get the money out as quickly as possible to those in need.
SAMANTHA ARMYTAGE:
Treasurer you’re, you’re sitting down with insurance companies this morning. Call me cynical but sometimes they can be a bit tricky, how, what are you going to say to them and how is the insurance money for those people who were insured in this crisis going to add to your $2 billion?
JOSH FRYDENBERG:
Well the insurance companies have already mobilised assessors and recovery specialists and put them in the field where it is safe to do so. I’ll be getting an update from them as to how quickly they are getting the money out to those communities. And if we can assist, then we will and that is why I’ll have also the regulators and Treasury with us today for those discussions. I mean the insurance companies are a critical part of this response and this recovery and they’ve already had claims submitted worth some $400 million worth of losses.
DAVID KOCH:
Well that’s great that the wheels are turning, and there’s certainly a focus on getting things done quickly. Treasurer thanks for joining us.
JOSH FRYDENBERG:
Thanks Kochie.