The National Bushfire Recovery Agency can not guarantee the funds set aside by the government to aid in the bushfire restoration will not also be used for the coronavirus response.
As Labor raises questions about the access to grants and loans for those impacted by the summer bushfires, and the government acknowledged the need to shake up the bureaucratic process, the fate of the money already set aside for the bushfire recovery, particularly the tourism funds, remains up in the air.
After a meeting of state tourism ministers last week ended in no formal guarantees, the $76m set aside to help disaster-stricken regions recover from the tourism hit would be increased to deal with the added impact of Covid-19. The National Bushfire Recovery Agency itself has been unable to confirm the already announced funds won’t be used for broader purposes.
“At this stage that is the intent [to remain bushfire recovery focused only] but with significant tourism affect in bushfire areas it is likely there may be some opportunity to work across both areas of impact,” an agency spokesman told Guardian Australia.
“This would remain a matter for government and at this time it is focused on the fire burn zone and surrounding areas.”
The government is already reviewing its suite of measures put in place to deal with the bushfire recovery, after a slow pick-up and complaints of overly bureaucratic processes.
In an estimates hearing earlier this month, agency head Andrew Colvin said $380m had been paid out in a variety of different grants and loans, but of the 104 applications for a small business concessional loan, just five had been granted for a total of $400,000.
For businesses which may have escaped destruction but lost their customer base because of the fires, the loans are some of the only assistance available.
“Experience from other disasters tells us it does take time for communities to begin the process of seeking the advice they need before they go forward with things they need such as loans and grants,” Colvin told an estimates hearing.
That same day, under questioning in parliament, Scott Morrison defended the money which had flowed through to communities, but admitted concerns about the progress of the small business grants.
“We are currently in the process of looking to rephrase and revise how those grants are being constructed,” he said.
“We will be doing that to ensure that we’re backing those businesses in that [they] can see that they have a future where they are, going out not only over the next three months but over the next 12 months. That’s what we’re applying ourselves to do.
“The New South Wales government will be working in that state to deliver those arrangements. They’ve highlighted some issues, because they’re the ones who are processing these applications. I look forward to us being able to deliver a better program.”
A spokesman for the agency said that review was under way and included “discussions on broadening eligibility criteria, speed of delivery, tourism stimuli and physical support”.
