MOIRA Shire has been assured federal government drought support funding will be forthcoming after all.
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But the federal government will reverse its decision with official confirmation as early as Friday.
Moira mayor Libro Mustica said Deputy Prime Minister Michael McCormack and member for Nicholls Damian Drum had both guaranteed council the original decision would be reversed.
"We're delighted with Michael McCormack's visit to Yarrawonga (Thursday) morning to discuss the bridge and the shire's foreshore plans and welcome his reassurance that Moira's access to drought funding was being resolved through further declaration of drought affected shires," Cr Mustica said.
"Damian Drum has also been in contact to reassure us that funding will be forthcoming.
"We're delighted with this news at it demonstrates the government recognises the difficult conditions farmers are facing."
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It was originally revealed in a Senate Estimates hearing Moira had not met the 17 per cent threshold of people working in agriculture by 0.1 per cent with neighbouring Federation Council.
But after its own assessment of Australian Bureau of Statistics data, Moira argued it exceeded the 17 per cent threshold with figures skewed due to being a border council.
Mr Drum was contacted for comment.
Mr McCormack was in Moira Shire yesterday morning, but when asked by media about the status of the council's drought funding application he gave no indication there would be a change of policy by the afternoon and defended the initial rejection.
"You have to have criteria," he said.
"Droughts don't understand lines on maps, droughts don't understand the percentage of a local government area reliant on agriculture, or the rate base, or the amount of rainfall or not," he said.
"Obviously Moira were disappointed they weren't included.
"But I've got local government areas in my own area, 12 of them, and seven have received assistance.
"The other five could well argue 'why isn't our funding there?'"
Cr Mustica said community engagement would be held on how the funds might be applied once funding guidelines have been obtained.
"We're looking for opportunities to strengthen the shire's farming future and this will absolutely help us in that direction," he said.