Letters to the Editor || Future Fund: be prepared || Simon Kelleher

The current drought has now reached catastrophic proportions and it would appear that our politicians are incapable of dealing with the situation and providing relief of any kind.

The damage is now so great that few if any farmers have the financial capacity to deal with the situation.

The National party has deserted their rural constituents and will pay a heavy price now that the Shooters Fishers and Farmers party have fielded sound uncontaminated candidates in several locations. 

We must look to the future and establish a Sovereign Wealth fund to deal with further catastrophes.

As you are probably aware former treasurer Peter Costello set up such a fund to future proof the Government in the event of a  shortfall of money required to meet government pensions and the like.

The fund is called a  “Futures Fund”.

The fund was seeded with several billion dollars and the money is invested in shares, bonds etc. and is today worth considerably more than the seed money provided. 

Sovereign Wealth Funds, known by many names, are set up by Governments all around the world.

Oil producing countries have them set up for when the oil runs out, Denmark has one for the same reason, America has several, some are to pay for the damage from natural disasters. Texas has one to fund schools and so on.  

Australia needs to define what  a natural disaster is  and drought must be included.

All the states and the Federal government must agree to set up a “Natural Disaster Fund” and each of the parties must contribute an agreed amount of seed money with top up money if required.

The  fund must be managed in the same way as the existing Federal Future Fund.  

When disaster strikes a declaration must be made by a responsible party and funds provided to assist with the damage. 

Public servants and politicians must not be permitted to manage or raid the fund for any purpose other than relief of natural disaster. With proper management the fund should be self-funding as time passes.

 As things stand every time a natural disaster occurs there is a demonstration of incompetence and incapacity by our politicians and their self-serving  bean counters.

While these people are trying to get their tiny minds around the issue the community is being damaged.

Simon Kelleher,