GRAEME GOODINGS:
Joining me now is Federal Treasurer Josh Frydenberg. Good morning, Treasurer.
JOSH FRYDENBERG:
Good morning, nice to be with you.
GRAEME GOODINGS:
It's good to hear that $2 billion is going to be put forward for the bushfires. Where is the money coming from?
JOSH FRYDENBERG:
Well, this obviously is a budget allocation it's an initial and an additional contribution from the Federal Government over and above the existing disaster recovery, allowances and payments. It will go to supporting small businesses helping farmers, replant and restock, it will go to local councils, there will be money for a major mental health initiative, it will help contribute to the rebuilding of infrastructure both social and economic and, of course, there's been very significant wildlife damage, particularly to our native flora and fauna and that, this money will help in that recovery process.
GRAEME GOODINGS:
And how soon, will the money be available?
JOSH FRYDENBERG:
Well, the Prime Minister will be making some comments in coming days and obviously weeks as priorities are assessed. The money will be administered by the National Bushfire Recovery Agency, which is being headed up by Andrew Colvin, the former Australian Federal Police Commissioner. We’ll work very closely with the states and this recovery agency is modelled on our response to the North Queensland floods where we established a similar agency and were able to get money out the door to those communities in need which made a big difference to their recovery and rebuild effort.
GRAEME GOODINGS:
I believe there will be cash payments available immediately to those most in need.
JOSH FRYDENBERG:
There are already payments being made. Over $25 million has been made over $100 million of commitments for people who have been adversely affected by bushfires. There's $1,000 contribution to adults, it's non-means tested, non-taxable, $400 to children. There's support for small businesses, there's a range of recovery payments and allowances and we're sending members of Services Australia out to those communities who have been impacted so that they can have their claims processed as quickly as possible.
GRAEME GOODINGS:
Just thinking the logistics of handing out the money like this would be quite huge so a lot of thought would need to go into that.
JOSH FRYDENBERG:
Well, this is a whole government effort. Not only have we seen the unprecedented call out of the Australian Defence Force and Chinook helicopters and Black Hawk helicopters ferrying our firefighters to those very difficult communities to reach. But we've also seen amphibious vessels like the HMAS Choules and now the Adelaide out there helping to move people and provide stores and medical support as required. There's just a Whole- of-Government effort involving, you know, every portfolio to support those communities.
GRAEME GOODINGS:
You put a figure of $2 billion on it. Is that likely to be enough?
JOSH FRYDENBERG:
Well, this is on top of the existing payments and allowances. So, to put it in perspective after the 2010 - 11 North Queensland, Brisbane floods as well as Cyclone Yasi, the Commonwealth contribution was about $5.6 billion to that recovery effort. Most of that was in payments and allowances and other support whereas only a small proportion of that was what I call Category D payments through the states, which is what this $2 billion will help support. So in perspective, this is much bigger than has been previously provided by the Federal Government reflecting the catastrophic nature of these fires.
GRAEME GOODINGS:
What's going to happen to the proposed budget surplus in light of his $2 billion?
JOSH FRYDENBERG:
Well, the surplus was never an end in itself, was always about responsible economic management so that the country could live within its means so that we’d have the financial flexibility to respond to economic shocks wherever they may occur. Now, clearly the economic impact of these fires is enormous and these communities can't rebuild alone, they need the support of federal and state governments and Prime Minister Scott Morrison is working very closely with Steven Marshall. I've talked to my counterpart, Rob Lucas and we're continuing to work very closely to ensure that the South Australian community gets that support that they need.
GRAEME GOODINGS:
Now, the Prime Minister has come under savage attack for his handling of the bushfire crisis, are you happy with the Government's response overall?
JOSH FRYDENBERG:
Well, this has been an unprecedented response in terms of the call out of the ADF, in terms of the announcement yesterday of $2 billion, the establishment of the recovery agency, the work we're doing through Services Australia, today I'll be meeting with the insurance companies to ensure that they're getting money out the door as quickly as possible, the Australian Tax Office has provided two months deferrals to people who are in affected areas for lodgements and payments obligations. So there's a whole series of initiatives that are taking place under the rubric of government which I think will make a real difference to those communities in need.
GRAEME GOODINGS:
Treasurer, thanks for calling in.