ALLISON LANGDON:
For more we’re joined by Treasurer Josh Frydenberg from Canberra, a very good morning to you Treasurer.
JOSH FRYDENBERG:
Good morning.
ALLISON LANGDON:
Now this $2 billion commitment, will it be enough to help this country and its people rebuild and recover?
JOSH FRYDENBERG:
It’s an initial and an additional contribution from the Federal Government of $2 billion over and above existing payments and allowances that is already seeing money make its way into the pockets of those in impacted fire-affected communities. We will work very closely as we’ve already done with the states to ensure that the small businesses are supported, local councils are supported that the social and economic infrastructure is rebuilt, that there’s environmental protection particularly for the wildlife that has been so badly damaged and hurt. And there’s also going to need to be a significant health response in particularly mental health support for those who have been impacted. So this is an initial contribution that will be administered by the new National Bushfire Recovery Agency under the leadership of Andrew Colvin, the former Federal Police Commissioner.
KARL STEFANOVIC:
Josh it’s a really good start. Who will be prioritised and how will they access the money?
JOSH FRYDENBERG:
Well the priorities will be assessed by Andrew Colvin and the Recovery Agency in conjunction with the states and the relevant minister David Littleproud. The Prime Minister will have more to say in coming days about getting some of that money out initially. But this is going to ensure that support gets to those communities who need it most. We need to rebuild lives and restore livelihoods and this is what the money is meant for.
ALLISON LANGDON:
Say I’ve lost my home, I’m only wearing the clothes on my back, my business is gone, how soon will I be receiving help from the Federal Government?
JOSH FRYDENBERG:
Well there’s already payments that have made their way out the door. More than $25 million of payments have been made, over $100 million of commitments. There’s an initial $1,000 for adults who have been affected by the fires, $400 for children. There’s support for up to $15,000 for small businesses. There will be further support for primary producers. There’s already a range of payments and allowances that are available and that the Commonwealth does provide. And this is over and above what that, what those existing payments ensure communities get.
KARL STEFANOVIC:
Look I know from experience in the past there’s been, there’s been some issues with delivering money on the ground. In Queensland for example, some cities I think Townsville for one had enormous difficulties getting money out of Treasury even though it was approved. Have you ironed out those difficulties yet?
JOSH FRYDENBERG:
Well actually with the North Queensland floods we actually set up a similar recovery agency and we had work being done. And what that proved was that money could get out the door particularly to those local councils who are closest to those communities and who know where those priorities are…
KARL STEFANOVIC:
…There were delays though that didn’t need to be.
JOSH FRYDENBERG:
Well we’re doing everything possible to ensure that there is as, you know, as little as red tape involved as possible so that the communities get the support that they need. Our focus Karl unequivocally is on the human cost, not the financial cost, the human cost of this tragedy and getting support to those families and businesses and local communities.
ALLISON LANGDON:
We’ve also seen previously, Treasurer, insurers dragging their feet. Will you stay on top of them?
JOSH FRYDENBERG:
Well I’m meeting with the insurance company CEOs today as well as with Treasury and the regulators and we want to ensure that they get that money out the door. There’s already been more than 4,000 claims totalling some $400 million of losses and it’s critically important that those insurers are able to get that money out as quickly as possible. They’ve mobilised assessors, recovery specialists, they’ve got them already out into the field where it’s safe to do so. We’re working with them, we’ve worked with the tax office to ensure there’s a two month automatic deferral of payment and lodgements obligations for people affected by the fires. So we’re taking a number of steps to get the Commonwealth Government providing every single piece of support that we can.
KARL STEFANOVIC:
Ok you gave an iron cloud guarantee of a surplus in the next financial year. And I don’t think there are going to be too many people who are that upset you’re not going to see a surplus but will that still happen?
JOSH FRYDENBERG:
Well the surplus Karl has never been an end in itself, it’s always been about disciplined economic management so that we have the flexibility to respond to economic shocks. These are unprecedented fires, you know, enormous pain and suffering for those communities who are involved. It’s going to take some time to rebuild and that’s what this money that we’ve announced yesterday is designed to help.
ALLISON LANGDON:
The Government’s been warned for years by experts that this was going to happen. Would this money have been better spent two, five years ago preparing for this day and limiting the amount of devastation we’ve seen?
JOSH FRYDENBERG:
Well we have been providing support with the states for aerial firefighting capacities for a range of other supports for these communities and of course there are shared responsibilities across both the federal and state levels…
ALLISON LANGDON:
…So do you think preparation ahead of this event has been adequate?
JOSH FRYDENBERG:
Well I think there will be lessons to be learnt, there’s no doubt about that. And the Prime Minister has already foreshadowed a formal inquiry that we’ll do so working with the states to see that, how Australia can prepare for the next challenge because no doubt there will be more. What we’ve seen here in response to this crisis is an unprecedented call out of the Australian Defence Force. We have Chinooks and Black Hawk helicopters flying in relief to those communities who are isolated. We have our amphibious vessels providing evacuation from Mallacoota Beach and elsewhere and we have boots on the ground and ships at sea, planes in the air. This has required an unprecedented effort from the Australian Defence Force and I know all Australians can be proud of that.
KARL STEFANOVIC:
Josh Frydenberg thanks for your time today, appreciate it
JOSH FRYDENBERG:
Good to be with you.