Federation and Berrigan shire's drought assistance funding has not been affected by a "forensic" review of eligibility data conducted by the government.
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Minister for Drought David Littleproud ordered the audit in light of the embarrassing revelation the government had given $1 million in drought relief to a council which recently flooded.
Moyne Shire council unanimously rejected the opportunity to apply for the $1 million drought relief funding offered by the federal government, clarifying they were not experiencing drought.
Moyne councillors were stunned on Saturday to learn Moyne had received the grant after enjoying a bumper winter/spring season, questioning whether it was meant instead for the drought-affected Moira Shire.
At the time, councillor Jim Doukas thought the grant allocation to Moyne was a spelling mistake, saying "it's not just an embarrassment, it's bad management."
The Drought Communities Programme is designed to support communities experiencing hardship in drought affected areas by providing $1 million to eligible councils to complete infrastructure and other drought-related projects.
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Late on Monday night, the government confirmed to the Rachel Houlihan, deputy editor of Australian Community Media's The Standard, that the wrong weather data was used when awarding the grant to Moyne.
However, only hours later on Tuesday morning the Department of Infrastructure, Transport, Cities and Regional Development contradicted the statement, saying it had "rerun the data" and confirmed Moyne and the 12 other local government areas award grants on Friday were eligible for drought relief.
Moira was not one of the 13 councils deemed eligible.
Moira Shire mayor Libro Mustica said the confusion had helped make people aware of the issues facing those on the land.
He said it was very dry across the Moira and farmers were struggling.
"A lot of people are hurting in this area, I like to think in the near future [funding] will come our way," he said.
Cr Mustica said the debate around Moyne's funding had shed some much needed light on the plight of farmers in the northern municipality.
"I don't know whether they used the wrong data or wrong pronunciation or what but at the end of the day it's shown the need for drought funding," he said.
"There's no point trying to blame people for what's happened whether it's a mistake or not a mistake, it's brought the discussion to the drought.
"It's been one of the greatest things that has happened in the drought... if it didn't happen the discussion wouldn't be there."
Cr Mustica praised the Moyne councillors for recognising there were other shires in greater need and starting a conversation around drought.
"It's a great thing the mayor rejected it as they're not in drought because a lot of areas are in drought with a great need for it," he said.
"Because they rejected the money they've brought attention to a lot of shires in dire straits."
Council areas neighbouring Moira, including Edward River, Berrigan, Federation and Murray River municipalities have all been deemed eligible for the Drought Community Program.
Federation council is holding a meeting today to identify and establish priority projects that could be funded under the scheme.
Berrigan mayor Matt Hannan said council had recently submitted their application to use the $1 million on four projects, two in Finley and two in Berrigan
It's been one of the greatest things that has happened in the drought... if it didn't happen the discussion wouldn't be there.
- Libro Mustica
If successful, the money will be used to replace the Finley War Memorial Swimming Pool amenities block, upgrade the carpark, and construct a new section of Scoullar Street that would link the hospital, independent living units and Finley town centre.
The pool carpark and amenity upgrade is designed to improve the appeal of northern approach to Finley.
In Berrigan, the money would be used to update Apex Park, replace the amenities black in Hayes Park and add signage about the town's history.
Cr Hannan said Berrigan shire - which sits across the river from Moira shire - was struggling.
"A lot of communities throughout NSW are doing it tough at the moment and Berrigan is one of those," he said.
"Obviously [having] no water allocation is an ongoing issue for the area and the continuing of the drought is a concern.
"Only 10 to 12 weeks ago it looked like it was going to be a positive outcome for the farming community but now, a lot of farmers have had to cut crops for hay because of the lack of rain."
Cr Hannan said the Drought Communities Programme funding was important because towns were struggling too.
"The lack of rain has a flow on affect to our communities and towns as well," he said.
"Our communities are struggling at the moment and we'll do as much as we can do to create economic activity and get people coming to town to spend money."
Cr Hannan said at the end of the day farmers needed water.
"The drought money is appreciated, but it's not going to fix [the drought]," he said.
"Water policy is something that needs to be addressed."
In explaining why Moyne was eligible for the drought funding, the Department of Infrastructure, Transport, Cities and Regional Development said they draw on multiple factors to determine eligibility such as economic and industry data including the workforce employed in agriculture, forestry or fisheries.
Bureau of Meteorology rainfall data from the 24 months to June 30, 2019 provided by the was also considered when determining eligibility.
Mortlake in Moyne shire received more than 1100mm in the 24 months to June 30 and Yarrawonga in Moira about 770mm.
Prime Minister Scott Morrison fended off questions about the allocation, claiming he was happy to be accused of being "too generous".
Asked on Tuesday why the PM was being "defensive" and "narky" about the issue, Agriculture Minister Bridget McKenzie said: "I'm not sure." "I think he's just keen to get the money out the door and make sure our farmers have the support they need," she told the Nine Network.
Moyne mayor Mick Wolfe said morally, councillors could not apply for the drought assistance.
- with The Age and The Standard