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

As I've previously advised the Senate, the plan will determine where the funding is going. The plan will be developed consistent with this legislation through a very robust process. I don't want to detain the Senate either, but I'm happy to go through that process again on how the funding plan is to be developed.

The governance framework for funding decisions under the Future Drought Fund is indeed robust and transparent, with requirements for extensive public consultation in developing the overarching Drought Resilience Funding Plan and consideration of independent expert advice before allocating funds. The funding plan will be informed by advice from the expert consultative committee. It is a disallowable instrument and will be established by the Future Drought Fund Bill 2019. The committee will also advise whether the proposed design of Future Drought Fund programs is consistent with the funding plan, and the Productivity Commission will conduct an assessment of the effectiveness of each funding plan before it expires, including having regard to the 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 board. 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 government arrangements are entirely consistent with similar arrangements for the Medical Research Future Fund, which operates exceedingly well. There is an independent process. That independent process will put in place a plan, and everything that is allocated in terms of funding under that plan will have to be consistent with it.