KIM LANDERS: Prime Minister, good morning.
PRIME MINISTER: Good morning.
KIM LANDERS: Some farmers are spending thousands a week feeding their livestock, a load of grain or hay is very expensive, so for many…
PRIME MINISTER: Well, hay is about $500 a tonne in NSW delivered from Victoria or South Australia and a typical truckload is 20 tonnes so it's about $10,000, that's right, it's a lot of money.
KIM LANDERS: So for many, this money is not enough, is the Government prepared to do more?
PRIME MINISTER: Well, the money is not designed to subsidise fodder. The way it works is the state governments provide the fodder and freight subsidies in Queensland and New South Wales in particular, NSW has just increased its subsidies. Under the National Agreement between states and federal government, we provide support for families. What we have with the Farm Household Allowance, which as you said earlier is based on Newstart – that’s paid fortnightly - we've added to that supplements, substantial cash supplements. I have to say they've been very well received. We've extended the availability of the Farm Household Allowance from three years to four years. We're working very, very closely with farmers right across the country.
But you've just had Fiona Simson on the line. Fiona and I talk regularly about this, she's President of the National Farmers Federation. I've got a very keen insight into this drought believe me, Lucy and I have been involved in this sheep and cattle business for 36 years, we've been through quite a few droughts. This is the worst.
KIM LANDERS: You're saying are you giving a reassurance to farmers that this is not the end of the Federal Government's assistance?
PRIME MINISTER: Well I said yesterday, I went out with the Deputy Prime Minister and the Agriculture Minister and other colleagues out in early June into west and central New South Wales and to the upper Hunter as well and up into Queensland. We made changes then. We provided an extension to the Farm Household Allowance from three to four years. We've provided additional mental health support and other investments into local communities. Now, we're doing more. If the drought continues to go on and on, what Fiona said was absolutely right, the pressure will become greater and we will continue to provide strong support from the Government.
Our farmers Kim - this is a really important point - our farmers are not helpless. They are courageous, they are innovative, they are enterprising. They understand that drought is part of the Australian climate. They get that and what we have to do is make sure that we back them in when the times get as tough as they are now. This is the worst drought for over 50 years.
KIM LANDERS: Should there be exit packages for those who can't cope or simply just want to walk away, are you thinking about that?
PRIME MINISTER: Kim, the important thing is to get people through to the end of the drought. Different farmers will make different decisions about their businesses. It depends obviously on people's age, you know in family farms if none of the kids want to take it over then no doubt the farm will be sold. Farms get sold all the time. It is a business. They are businesspeople but you know, you don't want to be throwing a sort of a blanket of doom and gloom over Australian agriculture. It is a massive industry and it is run by some of the most enterprising and innovative and technology savvy business people in Australia.
KIM LANDERS: Let me ask you then, you talk about resilience. If we look at long term planning the intergovernmental agreement on drought reform expired at the end of June. Are you actively trying to get a new deal with states and territories?
PRIME MINISTER: We are in constant contact with them both at the ministerial level -
KIM LANDERS: How far away might it be?
PRIME MINISTER: Well I haven't got a timeframe on that, but we're in constant contact with them, both at my level with Premiers and also with Agriculture Ministers. We're working very closely together and we are providing support at every level. You know, you put your finger on the key point here.
It's all about resilience, just what Fiona Simson was saying. She is one of the wisest voices in this area. She's a farmer, she's president of the NFF and she understands what we need to do is to make sure that we enable our farmers to be resilient and productive in a very changeable climate.
KIM LANDERS: Let me ask you, it's not just farmers of course who are affected, some country towns in New South Wales are running out of water, merely months away. Would your Government help pay to truck in water or drill new bores, water sources for some of those communities?
PRIME MINISTER:
Well we'll certainly work with the state and local government to do that. We haven't got the same urban or town water shortage challenges we had in the millennium drought, we haven't reached that point yet.
I saw a segment on the ABC last night about Murrurundi, a small town in the Upper Hunter, I know it very well. Lucy and I have got country right near there and I was actually there in the pub in early June talking about the drought with local farmers. So, I do understand these water challenges and clearly we will work with state and local governments to ensure that water is provided.
KIM LANDERS: Let me take you to another issue then, energy. Victoria's Premier Daniel Andrews says he's not going to back the National Energy Guarantee unless you can prove that you've got the full support of the Coalition party room. Is that going to be a problem for you?
PRIME MINISTER: We do have the support of the Coalition party room, but the real test for Daniel Andrews is does he want Victorians to pay higher, even higher prices for electricity? Right now Victorians pay the second highest prices for electricity.
KIM LANDERS: Do you think the states are going to try to torpedo this, this deal?
PRIME MINISTER: Well it's a choice Kim. You've got the Energy Security Board, a board of experts, they've come up with a plan that will bring these energy wars and energy uncertainty to an end and will deliver lower prices for electricity for families and for business. Those state premiers, if any of them want to oppose the NEG, what they are saying is, they want their citizens to pay more for electricity.
KIM LANDERS: You say you've got full support of your party room yet some of your members are openly talking about how they want changes to this to this guarantee.
PRIME MINISTER: Well, what are you referring to?
KIM LANDERS: Well Craig Kelly, for example, he says he'd like to see some changes to the scheme when it reaches the party room.
PRIME MINISTER: Well I can tell you it has overwhelming support of the party room. I mean I'm not sure what reservation Craig Kelly has but the fact of the matter is, this is the only opportunity we have on the table right now to deliver lower energy prices.
My Government is a government committed to reducing the cost of power and reducing the cost of electricity and gas. We have turned the corner on electricity prices, they are starting to come down. We've reduced the wholesale price of gas. We've succeeded in reducing the wholesale price of electricity, but there's more work to be done.
The NEG is the way to do it. So I say to those premiers, Daniel Andrews and all of them, if you sincerely want your citizens to pay lower prices for electricity, then take the advice of the experts, take the advice of all the industry bodies - unanimous - and back the NEG.
KIM LANDERS: Finally, Prime Minister, you would have heard that there's been a very powerful earthquake on Lombok, the Indonesian island, overnight. Will Australia send assistance to help with the recovery?
PRIME MINISTER: We certainly will, I'll be in touch with the President, President Widodo today, and we will offer all assistance that is available. We always reach out and assist our neighbours when natural disaster strikes.
KIM LANDERS: Any advice about Australians who might be among -?
PRIME MINISTER: At this stage no. Obviously Australians have been affected, they felt the shock including Minister Peter Dutton who was a counter-terrorism conference in Lombok. But at this stage I don't have any reports on Australians being injured. But there are a lot of Australians in Indonesia at any time so we will have to, you know, our consular services will be doing everything they can to ascertain the safety of Australians.
KIM LANDERS: Prime Minister thank you very much for joining AM.
PRIME MINISTER: Thank you very much.