Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Hansard source

As I indicated in my summing-up speech, this fund, once legislated and established, will generate $100 million of additional investment in initiatives, measures and projects to improve drought resilience and preparedness across impacted rural and regional communities. This comes on top of a whole series of other measures that we've previously announced as a government, $2 billion worth of additional measures to support farmers and regional communities in drought affected areas.

In relation to the way the funding will be allocated under this fund, the governance framework for funding decisions under the Future Drought Fund is robust and transparent, noting particularly the requirements for extensive public consultation in developing the overarching drought resilience funding plan and consideration of independent experts' advice before allocating funds. The funding plan will be informed by advice from the expert consultative committee which will be established by the Future Drought Fund Bill. The committee will also advise whether the proposed design of Future Drought Fund programs are consistent with the funding plan.

The Productivity Commission will conduct an assessment of the effectiveness of each funding plan before it expires, including having regard to economic, social and environmental outcomes. Further, all funding decisions must be consistent with the drought resilience funding plan and informed by advice from the Regional Investment Corporation. Programs to be supported under the plan will require approval through the annual budget processes, and funding for projects will be required to comply with Commonwealth procurement rules. These governance arrangements are consistent with similar arrangements for the Medical Research Future Fund and will help ensure that we achieve the policy outcomes that we are setting out to achieve.