PRIME MINISTER
STATEMENT BY THE PRIME MINISTER THE HON P. J. KEATING MP
VICTORIAN AGRICULTURE RECOVERY AND LONGER TERM GROWTH
I am pleased to announce today a Drought Recovery and Management
Facility which will better position Victorian agriculture to take full advantage of
the recovery from drought.
It is also intended to secure the longer term competitive position of Victorian
agriculture in the international market place.
I understand recent rains hold out the prospect for good crops and pasture
recovery. But our capacity to maximise the opportunities arising from these
favourable conditions will depend on how rapidly farm businesses are able to
recover from the impact of drought, and how well we deal with the rural
adjustment pressures that have built up over recent years.
Adjustment pressures are particularly pronounced at this time in Victoria,
which has experienced successive years of relatively poor incomes resulting
from a period of generally poor commodity-prices and other adverse
conditions followed by the drought. This has seriously weakened the
financial position of many farm businesses and their capacity to respond to
the current recovery.
The recovery period now in prospect provides an opportunity to facilitate
necessary adjustment in Victoria, especially in the wheat and sheep sectors.
The enhanced productivity and re-establishment support to be offered under
the $ 15 million Drought Recovery and Management Facility through the Rural
Adjustment Scheme will assist farmers and graziers to improve the
productivity of their farm businesses and to secure their longer term
competitiveness. Longer term adjustment will be supported by helping those
in the deepest trouble to leave sooner rather than later, and with dignity.
Up to $ 7.5 million will be made available by the Commonwealth to Victorian
farmers under the Facility, and the Victorian Government will be approached
to match this on a dollar for dollar basis. I
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This support is being complemented by $ 3.17 million Commonwealth funding
to match the Victorian Government's contribution to the extension of the
Wimmera-Mallee pipeline to facilitate improved drought preparedness and
management. The Commonwealth has agreed, subject to environmental clearances, to
provide $ 2.55 million for construction of stage 3 of the pipeline.
An additional $ 620,000 for associated property management improvements
and community participation to secure the benefits of the project will also be
provided. Together, these initiatives will greatly strengthen the capacity of the
Wimmera and Mallee regions to deal effectively with ongoing adjustment
challenges. BALLARAT October 1995