First Steps for Natural Disaster Funding Inquiry
Tuesday, 29th April 2014 at 10:08 am
The terms of reference for a Productivity Commission inquiry into natural disaster funding arrangements has been released.
According to the Federal Government, the inquiry will analyse the full scope of current Federal and State expenditure on natural disaster mitigation and recovery.
It said the inquiry had received full support from State and Territory Governments and the Australian Local Government Association— who were all consulted on the inquiry's terms of reference.
“The Productivity Commission will identify options for achieving an effective and sustainable balance between natural disaster recovery and mitigation funding, to help communities better prepare for disasters,” Federal Treasurer Joe Hockey said.
“Natural disasters can cripple communities and businesses, and have an enormous impact on our economy.
“It is essential that we build safer and more resilient Australian communities and this inquiry will be crucial in informing how government funding should be targeted to help achieve this …
“Since mid-2009 Federal costs for disaster recovery, under the cost-shared Natural Disaster Relief and Recovery Arrangements (NDRRA) alone, have exceeded $12 billion.”
The Productivity Commission's terms of reference provide for consideration of:
- the sustainability and effectiveness of current arrangements for funding natural disaster mitigation, resilience and recovery initiatives;
- risk management measures available to, and being taken by, asset owners;
- future options to most effectively fund natural disaster recovery and mitigation;
- incentives to support cost-effective decision making; and
- mechanisms and models to prioritise mitigation opportunities and evaluate the costs and benefits of a range of mitigation options.
The Productivity Commission will seek submissions to the inquiry.
The Commission will report on its draft findings in September 2014 and deliver a final report to the Government at the end of the year.
For more information, visit www.pc.gov.au.