Perin Davey (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Water Resources, Drought, Rural Finance, Natural Disaster and Emergency Management, Senator McKenzie. Can the Minister please outline how the Liberal and Nationals government is providing stability and certainty with its new support measures to assist drought-hit farmers and particularly small businesses and rural towns?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

As you know, this drought is showing no signs of halting, and our government has chosen to stand with our drought affected farmers and their communities from the very, very beginning, from the Drought Summit last year, where all premiers across this country came to Canberra and, as a Commonwealth, actually started towards agreeing how we're going to support our farmers. We were able to make more than $7 billion worth of commitments to our farmers, focusing on assisting them right now, in the here and now—our front line, the farming communities and their families—and then making sure that drought affected communities are supported as the drought continues, because it is not just our farming families that end up affected; it is actually our rural supply stores, the employment in these local areas. So we are supporting those drought affected communities with much-needed economic stimulus.

We announced last week a $200 million drought-only round of the BBRF, doubling the Roads to Recovery funding for these councils, so that they can employ locals and so that they can purchase the products for these projects from the local hardware stores and keep that money spinning through regional communities and keep people employed. When businesses dry up and when the cash dries up, people leave town and they do not come back. Over the weekend I was in Moree, and the mayor there, Katrina Humphries, talked about the impact on the whole community. She's a small business owner. Moree is like the moon landscape; it is incredibly dry. I have never seen anything like it. It is usually one of the most productive agricultural regions in the country, and now they're facing year on year of hardship and it's affecting the towns. I spoke to Col, who runs the local motorbike store. He's looking at laying people off if he cannot get the support required. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Davey, a supplementary question?

Perin Davey (NSW, National Party) Share this | Link to this | Hansard source

Can the minister also update the Senate on the existing measures which support farmers and communities affected by drought?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

When I was speaking to Col in Moree, he said that he thought that the new package of loans for small businesses in drought affected communities was exactly the type of product that would help him get through the drought and into the recovery. It would mean that he could keep his 20-plus employees on board and that he would be able to refinance any existing debt that he had and save tens of thousands of dollars in interest payments.

The reality is that, as soon as farmers have the crop in or are restocking, that is when the money will return to these communities. So small businesses are very, very appreciative. Why is that part of the drought support package? Because that's what we've all heard when we've been out talking to drought affected communities and farmers. This is exactly the type of response that our communities wanted. As I said, we've got the economic stimulus, we've radically simplified the farm household allowance and there's legislation before the Senate this week that will assist.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Davey, a final supplementary question?

Perin Davey (NSW, National Party) Share this | Link to this | Hansard source

How are the Liberals and Nationals in government building resilience against future droughts, and is the minister aware of any alternative approaches?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) Share this | Link to this | Hansard source

We are supporting our farmers and rural communities to prepare and plan for drought. We hear a lot of harping from other people that somehow we're not actually doing that, but the reality is that we are the first government going through a drought to actually put real money on the table and have a real policy focus to start preparing for the next one. Because guess what? We're Australians; this will not be the last drought. We have the Future Drought Fund, which will see $100 million helping us to prepare for the next one. We have also put a billion dollars into water infrastructure projects and for storages. We want state governments to come on the journey with us and build these much-needed dams and pipelines to drought proof, as much as we can, our regional communities and our productive capacity. That is how you plan for a drought; you plan for the next one now. We're the first government in our nation's history to actually do that. Instead of harping, get on board. (Time expired)