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Drought

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About this Item
Speakers - Williams Mr John; Martin Mr Gerard; Humphries Mr Kevin
Business - Matter of Public Importance

      DROUGHT
Page: 2388

      Matter of Public Importance

      Mr JOHN WILLIAMS (Murray-Darling) [4.48 p.m.]: Tragedy in this country presents in the form of bushfires, floods, cyclones and droughts. Unfortunately, a drought lasts a lot longer than the other events and it is not always at the forefront. The long-term effects of the drought in the Western Division are well known to all members of this House. Unfortunately for the people out west, recently they have endured more droughts than they have seen good times. My comrade from Barwon will speak on issues that affect the Western Division.
      In recent times the drought has claimed even more victims in places once considered drought proof. I look around the farming districts in my electorate and see communities financially threadbare and battling social problems created by a loss of income and the possibility of losing a lifetime of work. The support that has been provided by the Federal Government is commendable and the release of the latest package shows a further solid commitment to stick by farmers and rural communities. In one announcement $714 million was added in extra support. When the Premier was asked yesterday about waiving fixed water charges for irrigators he responded by suggesting the Government had spent $335 million to support farmers in drought. He forgot to say this has taken over 5 years.

      The Victorian Minister for Water, the Hon. Tim Holding. has spoken to irrigators and water authorities and is considering the best means to provide relief to irrigators. Last year Victoria provided $5,000 to any irrigator who received less than 50 per cent of his allocation. It also paid 50 per cent of shire rates to irrigators in exceptional circumstances. The Victorian Cabinet will meet next week to consider waiving all fixed charges and extending the 50 per cent shire rates payment to all irrigators. The New South Wales Government will rely on the Federal Government grants of up to $20,000 to irrigators in the Murray-Darling to help pay their fixed water charges. The lack of response of the Iemma Government to its obligations to help farmers in need becomes obvious when compared with the actions of the Victorian Government.

      The financial cost of drought to irrigators is demonstrated by the clear growth in average debt amongst farmers in the Riverina, the southern Riverina and the western Murray. Farmers are reducing their equity and feeling the stress. All farmers and irrigators in the Riverina, southern Riverina and the mid-west were encouraged by good autumn rains, followed by the Bureau of Meteorology's suggestion that the season would have sufficient rain to support the planting of crops. Encouraged by banks and the weather forecasters, farmers planted grain and forage crops. The planting of crops needed a substantial commitment in fertiliser, diesel and in some cases the purchase of seed.
      Most farmers also were encouraged to forward sell about one-third of their anticipated crop. This has been a common practice for some growers but this season banks have encouraged farmers to forward sell. Most contracts for wheat were signed at $260 per tonne. With the failure of all wheat crops a farmer may have to pay out a contract at a future cost of $550 per tonne. Government agencies identified hedging as the best practice for farmers and advised farmers accordingly. A farmer who has hedged his crop is hit with a double whammy: no crop and the need to pay out a contract for grain that, when due, will be at the highest price for grain ever recorded.

      The shadow Minister for Primary Industries, the Hon. Andrew Fraser, accompanied me on a two-day tour of my electorate to see firsthand the deteriorating state of the crops and the problems faced by farmers and irrigators. On the first night of the Shadow Minister's visit we attended a combined irrigators meeting in Mildura. Approximately 800 irrigators were unhappy about the lack of State Government support during their time of need. By the end of two days the member for Coffs Harbour witnessed farmers in crisis. While this Government cannot be blamed for their circumstances, it certainly has an obligation to help.
      During those two days, just to add insult to injury, we were confronted with the announcement that the Iemma Government would remove 16 teacher placements in Balranald. I have sat in this House since I was elected and heard the programmed criticism of the previous Coalition Government's removal of frontline jobs and, as recently as the last election, criticism of the Coalition suggesting frontline jobs will go. The Government has now pulled out 16 frontline workers from Balranald. Balranald has suffered enough job losses with the Carr-Iemma Government's decision to lock up Yanga Nature Reserve. The subsequent loss of about 100 full-time, part-time and contracted jobs is disastrous for the people of Balranald.
      This Government has demonstrated its complete lack of empathy for a community suffering from the effects of drought. The job losses remove a further million dollars per annum from the community of Balranald. The effects of drought on main street businesses were outlined by the comments from the publican of the Tuppal Hotel, Finley, who stated that he could name the date business slowed down. Bruce McMaster, a farmer at Merriwagga, said that when farmers or their wives went to town, they left the children at home to avoid buying anything but necessities.

      The Federal Government's announcement to extend exceptional circumstance funding to all business in towns of up to 10,000 will help business continue to service the needs of farmers in this drought. The New South Wales Government cannot continue to rely on the Federal Government to provide relief to farmers and use sustenance payments provided by the Federal Government to pay State Government charges. Today we see communities in crisis. We see people that have been affected by this drought and we see communities threadbare on social welfare. This Government has a moral responsibility to support these people and to ensure their health and state of wellbeing is preserved.

      Yet another insult is a plan by the Department of Primary Industries to remove two fisheries officers in my electorate, close down the office at Broken Hill and remove a fisheries officer from Deniliquin. Apart from removing jobs from my electorate, it gives an open invitation for any poachers to cross the border and remove valuable native fish stocks from the rivers and estuaries in my electorate. The Government continually talks about the need to preserve our native forests, fauna and flora yet intends to remove fishing inspectors, which will open the door to every poacher to fish illegally along the rivers in the Darling and Murray-Darling areas. The reason given is that the Government cannot afford four-wheel-drive leasing. That is a pretty good reason to remove the fisheries officers, close down an office and allow the removal of fish stock from the river system! It is an absolute and utter disgrace. The lack of support by Government agencies to the areas affected by drought continues. The communities battle on and try to sustain existence. Government agencies and programs are continually removed and there is no recognition of the effects of drought on people in the area.
      Mr GERARD MARTIN (Bathurst) [4.58 p.m.]: There is no doubt that the situation is grim for farmers right across the State. The drought seems to go on forever. We are now looking at the cumulative effect of five or six years of drought. As pointed out, there was the odd ray of hope when there was good rain in autumn and early winter in my area. Currently 71 per cent of the State is in drought, another 15 to 16 per cent is marginal and 13.3 per cent is deemed satisfactory. Every day that rain does not fall, the situation gets worse. The winter wheat crop of is 5 million hectares but more than 3 million hectares is in jeopardy. Farmers who believed the weather forecasts of autumn and winter rains and invested are now doomed to disappointment again.

      The mostly dry conditions have seen several areas move back into drought in the Balranald-Wentworth and Brewarrina rural land protection board zones. Some areas have moved out of drought, including areas in the Hunter, Milparinka, areas around Tamworth and Tweed-Lismore, which seems to be the only part of the State that never suffers drought. As the drought drags on it takes its toll on all agricultural industries. Yesterday's Sydney Morning Herald noted that this year's wine grape harvest is likely to be so small that some wineries will import product for the cask market. City people have been told they may not get any more cleanskin bargains. They will not get much sympathy from people in the bush about that. The State's water storage inflows have continued to be among the lowest on record. It has been reported that irrigation water in the Murray-Darling Basin is selling for up to 10 times the price it was 12 months ago. At the same time irrigators growing citrus, stone fruit and wine grapes have less than 10 per cent of their normal allocation—and the hot summer is still ahead.

      Seasonal conditions remain poor across the cropping belt, except for the north-east and far south-east areas. Most other areas have received minimal rainfall since the big break around the end of April. For example, areas such as Nyngan and Hillston have not recorded any rain since June. Between 50 and 100 millimetres of rain is needed to maintain the yield potential of the surviving winter crop, to boost summer crop prospects and to alleviate water shortages. At this stage we can only pray that the rainfalls come, but the prospect is looking bleak. We will deal with those issues when we come to them. Let us face it: there is only limited potential for summer crops at this early stage. For example, the prospects for rice are very poor. I am meeting with rice representatives later today. Some areas are faring much worse than others. Brogo Dam near Bega is near full. In comparison, Keepit Dam near Gunnedah is at only 14 per cent capacity and the Menindee Lakes near Broken Hill are at 3 per cent. The Iemma Government has committed more than $335 million in drought assistance measures since 2002.

      Earlier this month my colleague the Minister for Primary Industries announced another extension of our transport subsidy scheme at a cost of $12.1 million. That scheme is continually under review. It is a vital program for farmers, helping them with all-important transport costs. The Iemma Government is proud to continue this program and we will continue to do so until the rains come. Our other drought support programs remain in place, including our team of drought support workers. The drought support workers have been in place since January 2003 to provide advice, support and referral services for farmers and their families affected by this prolonged drought across New South Wales. They have done an exceptional job in helping farm families to access financial assistance and emotional support from government and non-government agencies, primarily through running more than 1,600 farm family gatherings and drought workshops, which have been attended by in excess of 80,000 people. These essential drought support workers will continue to coordinate farm family gathering events and information days to ensure our farmers and their families get the support they need as directly as possible.

      I congratulate the Federal Government on its announcement yesterday of $714 million in drought assistance for farmers. This time I hope it actually spends the money. In the past the Federal Government has made some big announcements, but at the end of the day, for a host of reasons, the money has not gone through to the farmers. Federal Opposition leader Kevin Rudd also has welcomed the package. I am sure every member of this House will agree that the crippling effects of the drought are too important for the grubby partisan politics of some members on the other side. I also welcome the recent announcement by the Federal Government to extend exceptional circumstances assistance in 26 New South Wales areas. This Government pushed the Federal Government to relax the criteria for exceptional circumstances assistance. The Federal Government made it very difficult, but is now relaxing the criteria. The test will be whether the money flows on to the people who need it. In the past it has not. Federal Ministers have made big dollar announcements, but at the end of the day a lot of that money has been unspent. Hopefully, that will not happen this time.

      The extension applies to areas where exceptional circumstances assistance was due to expire on 31 March next year. It means that eligible farmers and farm-dependent small businesses will continue to have access to much-needed income support and business assistance until at least 30 September next year when the situation will be revised. We need to recognise that farm businesses are at the end of their tether. I have met with a number of farm businesses in my electorate in recent weeks. They cannot run their businesses any more efficiently. If their customers do not have the wherewithal to buy and spend, then they are at risk. It is important that we acknowledge their plight.
      As all members know, the length and severity of this drought are exceptional. Whether it is a one in 100 years or one in 200 years drought is a moot point because it has affected almost all farming families and rural communities. Even if we were to now go into good seasons, it will take many, many years for most people and their properties to recover. The Federal Government is now offering to pay people to walk off their properties. That is a real tragedy and it underscores the desperation of some people. Some farmers are saying they do not have an alternative. They not only face financial disaster—I believe they are being offered $150,000 in some cases plus $20,000 for retraining—but because of their emotional attachment to their properties, particularly farming families who have been on their properties for generations, they will have great difficulty adjusting. We need to work together to help the farming communities get through this troubled period.
      As this Government has demonstrated from day one, we have been prepared to support farming families. We have provided $335 million, and we are continuing to provide assistance. We are also continuing to apply pressure on those who have the excess of riches and receive all the taxation revenue—the Federal Government. We know at the moment it is spending in desperation to try to get re-elected. Its efforts will be in vain. There is no question that the Rudd government will stand behind farmers alongside the Iemma Government. That is the prospect faced by the Opposition. It will make no difference to the assistance that will flow to farmers. We have to make sure that the Federal Government's $714 million is spent in a timely manner and goes to the people who need it. We must oversee that issue. The Iemma Government will stand behind our farming families, helping all the way.
      Mr KEVIN HUMPHRIES (Barwon) [5.08 p.m.]: I acknowledge my comrade the member for Murray-Darling for bringing forward this matter of public importance. One of the reasons the Federal Government has been able to allocate close to another $1 billion worth of funding to support rural communities across this country is the Federal Government's good economic management. One of the reasons the Coalition has been very good for the bush and why the bush needs the Coalition to be re-elected is the good work that has been done by our Federal colleagues, whom I work with regularly, such as John Cobb, John Anderson and Mark Vaile. They have been a credit during very difficult times. One of the iconic characteristics of the Australian nature is that when things get tough we do not leave anyone behind, no matter where they are from. This drought continues to bite. I referred to it in my inaugural speech in Parliament by saying that we are in danger of falling into a situation of national crisis. We are in that now. It is important that we do not leave anyone behind and that governments take a responsible attitude to supporting farming communities and all those people involved.

      In my area, the Gwydir, which takes in a large proportion of the irrigation industry and dryland farming in northern New South Wales, we are predominantly agricultural based. More than one-third of our people are directly employed in agricultural pursuits. This year we will see the lowest plantings ever of any irrigation crops, and any summer crop potentially. The millions of acres that have been planted under wheat have all but fallen over, except in isolated pockets, and we are facing a disaster. How will that translate into the wider community? The effects will be felt reasonably shortly because this disaster will translate into a food security issue. We are reaching a stage now in Bourke, where I was attending a meeting on a number of issues, where large proportions of citrus and permanent plantings have been grubbed out; they have been stumped right back and will take four or five years to recover.
      It is the same on the Murray-Darling. I spoke to dairy farmers at the Darling Dust and Drought Conference. The Murray-Darling Association met in Bourke three weeks ago and I spoke to irrigators and dairy farmers. One dairy farmer had 400 cows and two weeks of food left. I asked him what he was going to do and he said he had no idea. He had no answer and was going to walk away. That is prevalent right across that agricultural belt, right across the Murray-Darling Basin. Some 600,000 people are directly affected by what is going on, and we are in for a very rough trot. I have just come back from Enngonia where we were able to successfully put in place an injunction, so to speak, through the Federal Government to stop the Queensland Government selling 1,100 megalitres, which would have been a disaster in our already overallocated river systems.
      I congratulate the people of Enngonia and the Warrego River system for doing that. We are on a ride that is full of pain. Anecdotally we are going through an agricultural restructuring on the eastern side of this country and my advice is that at least 20 per cent of farmers will not survive this drought over the next 12 months to two years. Again I congratulate the Federal Government on its response. This is all leading to issues that are impacting upon our towns. I again congratulate the Federal Government for acknowledging small towns and businesses and for extending the exceptional circumstances assistance to all our small businesses. I do not have any towns in my electorate with over 10,000 residents, which is why it is quite important to the community of Barwon. I also highlight the issue the drought is creating—the large mental health issue.
      An anecdote from the Australian Psychological Society says that research has clearly identified a sense of hopelessness as one of the strongest risk factors for attempting suicide. The evidence further shows that in general men develop their self-esteem through their role as a breadwinner. When factors absolutely outside their control, such as drought, impact on this ability to be in control of that role, men may become depressed, which puts both the man and his family at risk. This drought has certainly placed a significant number of people at risk and I believe it will place the country at risk when it comes to issues of food security. We need help from the State Government, and one way is to drop the fixed water charges.
      Mr JOHN WILLIAMS (Murray-Darling) [5.13 p.m.], in reply: I thank the member for Barwon for his contribution and the member for Bathurst. The member for Bathurst gave us some statistical details about what is happening with the drought in New South Wales and I am sure the farmers who are suffering the drought are well aware of the circumstances they are in. Obviously, what is at the front of the minds of irrigators is some sort of relief from fixed water charges. There are people on exceptional circumstances who are being confronted with bills of $14,000 for fixed water charges for water they will not receive. That is not acceptable under any circumstances. There is not a consumer that I know who would be prepared to pay that sum of money for zero.
      This area needs some major consideration by this Government. The Government has been avoiding the issue. The Victorian Government has fronted up; it has seen its obligation and it has done something about it. Something has to happen. At a forum in Balranald, attended by the Deputy Leader of The Nationals and myself, rate relief was mentioned from the floor as a major contribution that the State Government could make: It would give some relief from shire rates to the farmers. The member for Bathurst spoke about drought support workers. They have done a great job and the State Government has done a great job to provide drought support workers. But the contract of those drought relief workers finishes in December and at this stage we have heard nothing from the Government about what is going to happen after December. We need to know if we will have drought support workers after December.
      The fodder transport subsidy, which plays a big part in supplying feed for many people carrying stock—and there are fewer of them today—is $20,000 per annum. From what I see, most of the farmers have de-stocked: any fodder they had they have sold into the marketplace because it gave them a greater return than trying to keep stock alive, to the point that sheep sold for less money than it cost to feed them. That is a fact of life. We need to recognise that dairy farmers are the big consumers of fodder; they need to provide fodder, they need to buy it. Most of them are buying more than $100,000 of fodder per annum to keep their dairy herd alive, and their $20,000 is spent in less than six months. I would like to see that subsidy for dairy farmers doubled to $40,000. I am sure the budget for that fodder subsidy will not be spent under the current circumstances, so there is flexibility and we can do it. The State Government's commitment of $67 million per annum to the drought covers only basic obligations.
      During this drought where has the Minister for Primary Industries been? We have not seen him. He has not gone out to see any of those farmers and any of the circumstances those farmers are placed in to understand what is happening and how the Government can help. I am sure by going into and meeting with those farming communities he would find that those people are suffering very badly with this drought. Our Government has a role to support those people and ensure their health and security are supported in the best possible manner. At this stage they have seen no-one from the Government. Just for the sake of moral support and the recognition of their problems they need someone to come out, as the Deputy Leader of the Nationals did in my electorate. The Minister should take a tour with me, listen to what people have to say, listen to their problems, and somewhere in that there may be a solution. The solution does not have to cost an arm and a leg but there must be some way of supporting these people in need. The Minister needs to be out there, out of Sydney and into the country, having a good look around at what farmers are facing in the Murray-Darling and Barwon electorates.
      Discussion concluded.


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