FOR. PRESS: PM 13/ 1971
FLOODAID FOR NEW OUTH WALES
Statement I y the Prime Minister, Mr. lohn Gorton
The Prime Minister announced today that, following discusscions held
between Commonwealth and State officials at the request of the New South Wales
Premier, the Commonwealth Government stood ready to provide additional assistance
to the New South Wales Government in financing relief measures required as a result
of the major flooding in the State.
The Commonwealth Government has already made available the services
of the Defence Forces to help with rescue operations and it has announced a grant
of $ 50, 000 as a contribution to the cost of providing, on a for basis, with the State,
relief of personal hardship and distress to those affected by the flood.
The Commonwealth would, the Prime Minister said, provide further funds
as required for this purpose.
Apart from immediate relief of distress, such assistance is available for
meeting essential repairs to houses and for repairing and replacing essential items
of furniture and personal effects to the extent required to provide reasonable living
conditions for those in necessitous circumstances.
The Prime Minister said that, in addition to sharing the cost of relief of
personal hardship and distress, the Commonwealth would assist in financing certain
other fLood relief measures where the cost of this would impose an undue burden on
the State's finances. The Premier of New South V/ ales has indicated that, as the State was already
committed to expenditure of arou ' nd $ 4 million on other natural disaster relief measures,
it would have difficulty in n-eeting additional ex-penditure in 1973-71 for flood relief. In
these circumstances, the Commonwealth Government had agreed to meet all expenditure
in 1970-71 on natural disaster relief in excess of $ 5 million. In practical terms, this
means. that the State's contribution to flood relief other than the relief a! personal
hardship and distress would be limited to about $ 1 million in the currenit financial year.
Under this arrangement agreed between the Commonwealth and the State,
assistance will be provided in addition to relief of personal hardship and distress, for
Carry-on loans at concessional interest rates to farmers
affected by the floods who are in necessitous circumstances
and who are unable to obtain additional credit through normal
commercial channels. / 2
2.
Restoration of certain State and. Local Government
assets damaged-by-theifloods.
The New South Wales Premier, Mrz. Askin, had pointed out that it was difficult
-to-be-precise as to the amounts required at this stage simply because Ouch a large part
of the floo-d iffccted areas worc still1 under water..-However, flooding i both the northwestern
areas of the State and the south coast o! the State had been most severe and
quite clearly substantial amounts would be needed to remedy the chaos which the floods
had created and to assist those in real need. Preliminary estimates suggested that an
amount in excess of $ 10 million could be involved. This would, of course, be additional
to the substantial expenditure on restoring flood damage that would be financed through
private insurance. Details of the terms of Commonwealth assistance to the State were still being
worked out. However, the New South Wales Premier had indicated that relief forms had
been issued to-all Police Stations and Councils in the flood affected areas while farmers
needing carry-on assistance should make application through the nearest Branch of the
Rural Bank.
CA NBERRA
9 February 197i1