I am pleased to announce a number of additional measures to assist rural communities cope with the current drought.
This drought is very extensive and is placing great strain on many farmers and their communities. These additional measures meet a number of needs in the current drought.
These new initiatives provide additional funding to meet a number of concerns including cash flow for farmers, pest control, environmental protection and community support for struggling farmers.
The Government is deeply sympathetic to the plight of farmers and communities suffering in this drought. We want to work with farmers and communities in helping them deal with this drought. We will continue to talk with farmers and their communities on how the Commonwealth may support them.
These measures build on the significant funding already provided by the Commonwealth to managing this drought. On the basis of current and conservatively anticipated Exceptional Circumstances declarations funding of about $370 million over the next two years will be required. If a greater than anticipated number of regions are declared Exceptional Circumstances then that amount will automatically increase further.
As well, a sum of $470 million of foregone revenue is involved this financial year for Farm Management Deposit schemes. The Commonwealth already changed exceptional circumstances arrangements to ensure the areas that have a prima facie case for exceptional support receive income support for six months while their claim is assessed.
In addition, The Government will also streamline consideration of advice on exceptional circumstances applications to ensure there is no unnecessary delay in coming weeks.
The Commonwealth declared Bourke and Brewarrina as an Exceptional Circumstances area on 13 November 2002.
Five other regions have demonstrated a prima facie case for Exceptional Circumstances assistance, and interim income support is available to farmers in these areas. The regions include Peak Downs, Walgett and Coonamble, Grafton and Kempsey, the majority of Western Division, and Northern New England.
Additional drought measures
Earlier access to Farm Management Deposits (FMDs)
Providing an exception to the 12-month waiting period for access to FMDs for farmers in an EC declared area. This would help farmers manage the cash flow impact of the drought and would not affect the overall cost of FMDs in the forward estimates.
Personal counselling (up to $2m in 2002-03)
Provide, through FaCS, additional funding for personal counselling services in drought-affected rural areas.
Australian Government Envirofund – drought funding round ($10m, reallocation of existing NHT resources)
This measure would target works to protect the land, water, vegetation and biodiversity resource base from the effects of drought, and to assist recovery. Examples of possible works include waterway protection, erosion control, fencing to protect habitat and piping to locate stock away from sensitive waterways.
Pest animal management grants programme ($1m in 2002-03)
Pest management is an important drought management (and recovery) tool. Animal pests (eg. kangaroos, feral pigs, feral goats, rabbits) can graze vegetation so heavily that it does not recover. This funding will assist farmers and communities deal with this problem now through humane culling and so assist the recovery when drought breaks.
Country Women';s Association (CWA) Emergency Aid Fund ($1m in 2002-03)
The CWA is an important community support in rural Australia. This funding would assist the CWA in helping and supporting farmers who may be otherwise reluctant to apply for assistance (such as Farmhand).