The federal government has defended the use of its $4.8bn emergency fund in the face of criticism amid the flood crisis that only a small sum of the available money has been spent.
The unfolding flood event in northern NSW and South East Queensland has reignited criticism from Labor that the Morrison government has largely sat on the emergency response fund (ERF) it announced in April 2019.
The ERF allows the government to draw up to $200m a year in additional funding for emergencies and natural disaster recovery and preparedness.
Since it was established in 2019 with an initial $3.9bn investment, the ERF has earnt some $836m in interest and paid out $50m in disaster projects, according to the Department of Finance.
Emergency Management Minister Bridget McKenzie defended her government’s use of the fund and accused the opposition of playing politics with the flood disaster.
She doubled down on her comments on Tuesday morning, saying the ERF was being used as intended.
“The emergency response fund was set up as a future fund to be used when all other sources of funding have been exhausted,” she told the ABC.
“And I can let you know for this disaster, we haven’t even instigated category C and D of the disaster funding arrangements with the state governments. That will be coming in the next couple of weeks.”
Senator McKenzie said the ERF was being used, claiming $50m had been put forward annually for flood mitigation projects to support local councils and state governments.
“The funding for disasters has not been exhausted. And it won’t be,” she said.
The unprecedented floods of the past week have killed nine people and resulted in hundreds of rescues, with more evacuation orders expected as the weather system moves further south in NSW.
Labor’s emergency management spokesman Murray Watt has ramped up his criticism of the Coalition’s use of the ERF in the wake of the crisis.
“(Senator McKenzie) forgets txjmtzywo mention not one mitigation project built, 3 years after Govt’s $4.8B Emergency Response Fund announced. But has earned Govt over $830M in interest. Might have been useful,” he tweeted on Tuesday.
Senator Watt had already panned the government over the ERF earlier in the week.
“Just putting this out there for @PeterDutton_MP – there’s a $4.8 billion crowdfund that’s been waiting 3 years to be used…,” he tweeted on Sunday.
Dickson MP Mr Dutton set up a GoFundMe page hoping to raise $25,000 for the flood-affected Pine Rivers community in his southeast Queensland electorate.
The National Recovery and Resilience Agency says on its website the ERF is controlled by legislation that means each financial year the government can access up to $50m for preparing for disasters and up to $150m for emergency response and recovery.
“Put simply, the ERF isn’t there to be accessed every time Australia sees a severe weather season, and it isn’t the Australian government’s only way to support disaster response and preparedness,” the NRRA said.
