Fu­ture Drought Fund gets $5 bil­lion boost

Chinchilla News - - NEWS - More in­for­ma­tion on drought sup­port is avail­able at http://www.agri­cul­ture. gov.au/ag-farm-food/ drought.

THE Fed­eral Govern­ment has in­tro­duced leg­is­la­tion to es­tab­lish a new, se­cure, rev­enue stream, which will grow to be worth $5 bil­lion, for drought re­silience, pre­pared­ness and re­cov­ery.

Min­is­ter for Agri­cul­ture David Lit­tleproud said the Fu­ture Drought Fund was a for­ward-look­ing pol­icy which would pay off for decades to come.

“We’re guar­an­tee­ing long-term rev­enue to build drought re­silience,” Min­is­ter Lit­tleproud said.

“The Fu­ture Drought Fund will help give our farm­ers tools to pre­pare for, man­age and sus­tain their busi­nesses through drought.

“The Fu­ture Drought Fund will de­liver in­fras­truc­ture projects, pro­mote the adop­tion of new tech­nol­ogy and help im­prove en­vi­ron­men­tal and nat­u­ral re­source man­age­ment on farms.

“Im­por­tantly, it will not be used to fund ex­ist­ing mea­sures al­ready in place,” he said.

Min­is­ter for Fi­nance and the Pub­lic Ser­vice Mathias Cor­mann said the Fund would start with $3.9 bil­lion, grow­ing to $5 bil­lion over the next decade.

“From 1 July 2020,

$100 mil­lion will be di­rected an­nu­ally to fund a wide range of drought re­silience projects, while the bal­ance is rein­vested the Fund,” he said.

“A pre­dictable fund­ing stream for drought re­silience will en­able Aus­tralia’s $60 bil­lion agri­cul­tural in­dus­tries to ful­fil their po­ten­tial.”

The govern­ment will de­velop and pub­lish the Drought Re­silience Fund­ing Plan to en­sure a trans­par­ent and con­sis­tent ap­proach to fund­ing drought re­silience projects.

“The plan will be in­formed though pub­lic con­sul­ta­tion and re­viewed at least every four years to en­sure it cap­tures emerg­ing pri­or­i­ties.”

The Fu­ture Drought Fund will be man­aged by the Fu­ture Fund Board of Guardians, which has a proven track record of man­ag­ing in­vest­ment port­fo­lios on be­half of the Govern­ment and max­imis­ing re­turns over the long-term.

The govern­ment has also de­liv­ered more than

$1.8 bil­lion in as­sis­tance mea­sures and con­ces­sional loans to sup­port drought-af­fected farm­ers and com­mu­ni­ties.

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