An AUD$5-billion dollar drought fund to help struggling, drought-stricken farmers was announced by PM Scott Morrison on Thursday, 25 October.
Source: Own.
The fund will recieve an initial injection of 3.9billion dollars from the future fund, which will be invested in water infrastructure and other agricultural projects. The fund is estimated to be worth $5-billion dollars by 2020, when funds up to $100million can be drawn each year to help struggling farmers.
The money will be allocated to a board of guardians, who will decide where the money is best spent. Former treasurer Peter Costello will be a leader on this fund, and will spend the money on community services, research, and infrastructure focused on long-term sustainability.
Modelled on the Medical Research Fund, the initial money will be drawn from the Building Australia Fund, which has been unused for the past four years.
Morrison described the fund as something for a 'non-rainy day,' and said that 'It guarantees drought support for the men and women who drive our nation.'
Labour spokesmen, Mr Fitzibbon told reporters that '[The fund] is just an accounting trick designed to generate a big dollar headline for the government. It's fake money until it is allocated to programs."
Meanwhile, Mr Fitzibbon was critical of the drought summit, saying that there wasn't enough time allocated to discuss the drought in-depth.
'We've got two hours for 170 people to discuss long-term planning. It ain't going to happen, sadly,' he said.
Before Parliament can move ahead with the fund; however, it will need to be legislated through the lower and upper houses.
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