Standing Committee on State Development

Debate resumed from 28 November 2007.Debate resumed from 28 November 2007.

The Hon. TONY CATANZARITI [2.35 p.m.]: I am pleased to commence debate on report No. 32 of the Standing Committee on State Development, titled "Aspects of Agriculture", as tabled in this House on 28 November 2007. The report examines the contribution that agriculture makes to the New South Wales economy, impediments to sustaining appropriate levels of growth in the industry and initiatives to address those impediments. For the benefit of the House I will briefly outline the findings of the report.

Agriculture is the backbone of New South Wales. It creates jobs in rural areas, supports communities and makes a substantial contribution to Australia's export earnings. There is also a tremendous non-economic value in agriculture that goes beyond tourism and environmental values. However, the State's agricultural industry has suffered from the long-running drought that still affects parts of New South Wales. It is said to be the worst drought in 100 years and has had a devastating impact on crops, livestock and rural communities.

There is a common misconception within cities that agriculture is causing damage to the environment, yet this is far from the truth. Due to the significant changes in land management practices over time, farmers are now becoming environmental caretakers of the land: protecting, sustaining and, in a number of cases, improving it for future generations. However, as a result of misconception, agriculture is suffering from a negative image and there is a general lack of pride in the industry within New South Wales. The committee believes that we need a shared view of agriculture within the State and the report recommends that a vision statement and core set of values be developed for this purpose.

Farmers are continually adopting new farming practices and innovative technologies to overcome environmental constraints in agriculture and to improve water use efficiency. The committee witnessed a number of these innovative practices being used during its travels around the State. We met with farmers and members of rural communities to see and hear first-hand about the impact of the drought in those areas. With the possible threat of climate change, more needs to be done so that farmers are better prepared for droughts and better able to adapt to change. The committee has recommended the use of incentives to adopt more sustainable farming practices, such as those currently provided through a number of catchment management authorities. These practices include conservation farming methods and holistic management principles, which the committee has recommended be incorporated in agricultural education programs through the New South Wales Department of Education and Training.

During the inquiry it became clear that drought support workers provide more than just drought support. They provide general rural community support. Accordingly, the committee recommends that the current drought support worker's role be enhanced to provide this support on a permanent basis and the name be changed to "rural community development worker". With regard to the rural financial counsellor service, the committee believes that the service could be enhanced and tailored to provide long-term financial planning advice in conjunction with agronomy advice to better assist farmers to maintain viability.

The committee also recommended that the New South Wales Government undertake a leadership role at a national level to persuade the Commonwealth Government to replace the reactive exceptional circumstances assistance program with a proactive drought preparedness program. Research and development in agriculture are essential to achieve gains in productivity and sustainability and must be maintained in the future to find ways to manage and adapt to droughts and climate change. Unfortunately, however, funding for research and development has been reduced during periods of low industry productivity such as drought because of decreased grower contributions.

The committee therefore recommends that a base level of funding be established by the New South Wales Government to adequately maintain research projects at the Department of Primary Industries. The committee further recommends that the New South Wales Government pursue a review of existing funding methods between the Commonwealth Government and industries to establish a baseline level of funding to be provided to rural research and development corporations. One of the major impediments to agriculture identified by inquiry participants was red tape. This is caused largely by duplication of legislation or regulations that apply to industry and uncertainty amongst farmers as to which of the regulations apply to them.

The committee recommends that the Better Regulation Office, in consultation with relevant stakeholders, review the range of legislation and regulation impacting on agriculture. The review should identify the purpose for which the legislation or regulation exists and determine areas of duplication. The review should be made publicly available for comment once completed and should provide proposed actions for improvement. This reflects priority 3, or P3, of the State Plan, which aims to cut red tape and therefore reduce the regulatory burden on business. Some regulatory burden necessarily will remain, even following a review of existing regulations and actions to reduce duplication. Accordingly, the committee recommends the creation of a central one-stop shop for advice and information.

Conflict of land use is a major problem for the future sustainability of agriculture. As urban populations grow and the sea change and tree change trends continue, there will be increasing pressure on local governments to provide residential land for housing. Retaining productive agricultural capacity within these areas is important, as in many of these areas the land that is most desirable to live on is also the most arable. The committee therefore endorses the key recommendations of the Central West Independent Review Panel. I thank my fellow committee members the Hon. Melinda Pavey and Deputy Chair, the Hon. Christine Robertson, the Hon. Michael Veitch and the Hon. Matthew Mason-Cox for their support throughout the inquiry and for their hard work in producing this unanimous report and its 38 recommendations.

The committee received a number of submissions and public forums and hearings were conducted in Sydney, Tamworth, Narrabri, Leeton and Cootamundra. My thanks go to everyone who contributed to this inquiry, especially those who participated in our public hearings, forums and site visits, and those who wrote submissions. My thanks go also to the committee secretariat Rachel Callinan, Simon Johnston, Teresa Robinson, Annie Marshall and Sam Griffith. I thank the Hansard reporters and John Wilkinson from Parliamentary Research Services for their efforts without which none of this would have been possible. I commend the report to the House.

The Hon. MELINDA PAVEY [2.43 p.m.]: I note with great pleasure the report of the Legislative Council Standing Committee on State Development entitled "Aspects of Agriculture." This worthwhile and important inquiry, which was chaired by the Hon. Tony Catanzariti, brought together some new committee members. I note the work of the Hon. Michael Veitch, Reverend the Hon. Fred Nile and the Hon. Matthew Mason-Cox. The inquiry clearly illustrated and pointed out the importance of agriculture to New South Wales now and in the future. There is talk within the financial sector—and I concur with the view—that agriculture in Australia is moving back to the golden or halcyon days of the 1950s. The global population is growing but agricultural lands are not growing.

Many of the committee's recommendations tackle some of the challenges facing agriculture in the future. The important thing about the inquiry was that many positive aspects about agriculture and living in country areas were brought to the fore. Agriculture is exploding and farmers will get a much better deal for their products in years to come. I would like to share with members some important statistics. Prospects for commodities being sent to market has never been this tight. Currently we have only 30 days of wheat supply left in the world at any one time, which is extraordinary. Europeans in particular have radically reduced their subsidies. It is not perfect but things are improving and many commodity prices are no longer distorted to the extent that they were.

Europeans are paying less for their food but our growers and farmers are getting more. Consumers in France are paying less for their baguettes and farmers in Australia are getting paid more for their wheat. Grain prices in Australia have more than doubled since last July and they are continuing to strengthen. In part that is due to the drought and to the limited supply we had because of drought conditions, but the overall international market is having a positive impact on the prices that farmers are getting. In some areas dairy prices have risen by more than 100 per cent in the past 12 months. Now that the dams are slowly filling across regional New South Wales farmers can be confident for the first time in decades that when their crops are bountiful, when their vats are full and brimming with milk and when their cotton gins are again working at full steam, prices will not come down and the world market will ensure they continue to get a good price.

Why is that happening? Currently 300 million of China's 1.4 billion people have a middle-class disposable income and they are looking for more sophisticated types of food. The exciting news is that the middle-class in China is growing every year by tens of millions and that growth is not expected to peak until 2030. China is not the only country to experience growth in the middle-class area: there is high growth in that sector in Indonesia, India, Malaysia and Thailand. There are many opportunities for farmers across New South Wales and Australia to cash in on. The world's population, which currently stands at 6.6 billion, is forecast to increase to eight billion in the next 12 years, that is, a 20 per cent increase in the number of mouths to feed.

As I have mentioned, there is also a global growth in income. More people are becoming educated, have good jobs and are moving into the middle-class, which could mean simply having electricity. Peasants in China are moving away from living in difficult circumstances to being able to put lights in their homes and to read books. But an estimated three billion people in the world are seeing their annual earnings rise from about $US1,000 year to between $5,000 and $6,000. Increasing numbers of farmers are also switching to growing corn and other cereals to produce ethanol for biofuel, which is having an impact on grain prices. That is probably why we have only 30 days of supply of wheat left in the world. At the end of the day those pressures are having a positive impact on the prices that farmers are getting, which is long overdue. Over the past 20 years the income-to-work ratio for farmers has been decreasing and, for the first time, there is a bit of light at the end of the tunnel.

The committee looked in particular at the effect of the drought in New South Wales and it made a total of 38 good recommendations. I am pleased to say that some of those recommendations are the same as The Nationals' party policy before the State election. I am pleased also that my Labor colleagues are now on board. We adopted many good suggestions from country community areas. The Nationals have those policies because we represent country areas.

One recommendation that needs to be examined closely and quickly from an environmental perspective is that the Minister for Primary Industries under the Noxious Weed Act 1993 prohibit the sale or propagation of lippia in New South Wales. We saw the destruction lippia was causing on the banks of the Narrabri River. Certainly I encourage the Minister to examine that proposal quickly. The committee spent a lot of time also inspecting unbelievably good research facilities, particularly at Narrabri and Tamworth. It is quite extraordinary what scientists are doing at those places. World-leading technology being developed at Tamworth has the potential to reduce by as much as two-thirds the amount of chemicals and pesticides used throughout the world—it is groundbreaking stuff. An Italian company has become involved in this particularly exciting process. It is encouraging to see scientists working with farmers in regional and country communities to develop solutions to eradicate and/or control pests as well as using the land more ecologically and sustainably. Recommendations 6 and 7 are particularly relevant to that process. Recommendation 6 states:

That the NSW Government work in conjunction with private industry to establish a baseline level of funding to be provided to the NSW Department of Primary Industries to maintain research and development programs.

Scientists will be given certainty for their programs so they can worry about research rather than the origin of their next lot of funding. Recommendation 7 states:

That the NSW Government undertake a leadership role at a national level to persuade the Commonwealth Government to review the existing funding formulae for agricultural industry research and development, and establish a baseline level of funding to be maintained.

They were good recommendations. I encourage industry and government to work together to reach solutions and obtain consistent funding. The other very unanimous recommendation, but which could have been contentious—

The Hon. Amanda Fazio: There are no degrees of unanimity.

The Hon. MELINDA PAVEY: I agree with the Hon. Amanda Fazio that there are no degrees of unanimity. Recommendation 10 concerned an amendment to the Drug Misuse and Trafficking Act 1985 to allow for the commercialisation of industrial hemp in New South Wales. Convincing evidence was presented to the committee at Leeton of industrial hemp being used to make dashboards in European cars. The potential use of industrial hemp in that market can no longer be smothered. One of the companies involved gave a clear demonstration and a good presentation. The committee agreed unanimously to support that recommendation. I hope it will be the subject of debate in this place in the near future. Discussion was had also about encouraging further development of agricultural products.

The cotton industry in the north-west is doing very well with its gins and processing. More processing is needed and a strong recommendation was made for payroll tax concessions to secondary industries with the aim of promoting more value adding to agricultural products in rural and regional areas. Industry is telling agriculture that more processing is needed. Payroll tax concessions could be part of the process to encourage more processing. Industry must take the lead with the support of government and the Department of State and Regional Development. I thank my colleagues on the committee for their excellent work.

Reverend the Hon. FRED NILE [2.54 p.m.]: I was pleased to be a member of the special inquiry of the Standing Committee on State Development. The inquiry occurred at a time of great stress in the farming community. The terms of reference were as follows:

1. That the Standing Committee on State Development inquire into and report on the agricultural industry in NSW, in particular:

(a) The contribution of agriculture and agricultural-based products to the NSW economy,
(b) Impediments to sustaining appropriate levels of productive capacity and growth in the agricultural industry, and

(c) Initiatives to address impediments to sustaining appropriate levels of productive capacity and growth in the agricultural industry, having regard to the NSW State Plan priority areas of ‘Growing Prosperity Across NSW’ and ‘Environment for Living’.

The committee had a number of meetings at Parliament House to consider these issues and also visited regional areas and received encouraging responses from the farming community and local government in evidence at various centres such as Cootamundra. Forums also were held at which people could make contributions to the committee. The report covers a number of areas. Chapter 2 deals with agriculture and the New South Wales economy. It confirms the important role agriculture plays in New South Wales and Australia in creating jobs in rural areas and the support those jobs provide for communities.

All parties support decentralisation, but it will not happen without a strong agricultural industry to provide jobs and income for families in outback areas. Agriculture makes a substantial contribution to Australia's export earnings. In addition, the non-economic value of agriculture goes beyond tourism and environmental values. Agriculture provides to this State's gross domestic product approximately 2.8 per cent, that is, $9 billion—around 6.1 per cent or $18 billion when the multiplier effect of agriculture on other industries is considered. Governments of both persuasions always focus on supporting agriculture. The Labor Party highlighted its support with the development of Country Labor as part of its political agenda.

The committee also examined land management and the future of agriculture. We visited a number of experimental stations and saw various crops being grown and developed for testing, which would provide assistance to farmers who would plant those crops. We also considered sustainable farming practices to protect the environment—so important in this day and age—and also conservation methods to enable farmers to better prepare for drought. The committee travelled throughout the State at the peak of the drought when farmers were suffering greatly and struggling under great stress to maintain their properties. It was good for the committee to visit drought-affected areas to show farmers that Parliament and members of Parliament care about their plight and needs, and that the committee, to the best of its members' abilities, would make recommendations to assist them.

An enterprise with potential growth is the harvesting of native species, but development of that initiative could be a two-edged sword. It is a controversial subject, but the committee has noted the potential for improved marketing and promotion of products from native species, such as kangaroo meat and mallee as a fuel source. I am aware that a section of the community wants to protect kangaroos because of a belief that the kangaroo is in danger of extinction. However, farmers in regional areas feel quite differently and say that they face a kangaroo plague. I believe a practical rather than an emotional approach should be adopted to consideration of that issue.

The committee also considered the production of biofuels, which it regards as an important new industry. In some respects there is potential for conflict between crops being used for food versus crops used for fuel. If more profit can be obtained by selling crops for biofuel that could lead to a shortage of food that is used to feed the community or for export markets. A careful approach should be adopted to striking a balance, and the Government should maintain a watching brief to ensure that the appropriate balance is achieved and maintained. I was pleased to participate in the inquiry. The report has many positive recommendations. The committee looks forward to the Government's implementing its recommendations in due course.

The Hon. MATTHEW MASON-COX [3.02 p.m.]: It was a pleasure to be a member of the Standing Committee on State Development as it inquired into aspects of agriculture. It was my first opportunity to travel throughout the State as a member of a committee involved in such an important inquiry. Sadly, because I was in hospital for part of the inquiry, my participation was interrupted and I was prevented from visiting some of the more interesting parts of regional centres. I have been told that the committee's visits were extremely valuable and that the bonds formed among committee members was something to be seen. I regret having missed that; nonetheless, I can tell from the report and subsequent committee room discussions that the weight of the recommendations reflects the information gleaned during a number of those visits.

Under the very deft and skilful guidance of the committee's chairman, the Hon. Tony Catanzariti, the committee formed a unanimous view of the importance of the agricultural industry to the State and the nation. Submissions were sought from a range of agricultural bodies as well as departmental representatives. Clearly the gold seam running through the submissions was the importance of agriculture now and in the future to the State. In particular I note that in 2003-04 the gross value of agricultural production was $8.5 billion or 2.7 per cent of gross State product. It was 2.9 per cent in 2004-05, and 2.8 per cent in 2005-06. While the figures do not seem to be significant at face value, clearly the contribution of agriculture to gross State product has significant multiplier effects throughout a range of associated industries. Agriculture is a major employer in many regions of New South Wales and is a major contributor to the State's export earnings.

It is imperative for the Government to recognise the importance of agriculture. The committee noted during the inquiry that there seems to be a lack of pride in agriculture throughout the State. There also appears to be a widening disconnection between metropolitan and rural areas and a lack of awareness in city areas of the significant benefits of agriculture and the communities that rely on agriculture. I commend to the House the committee's recommendation that a vision statement and a core set of values be developed to bridge that gap and that the Government take steps to facilitate development of a process to address that issue as soon as possible.

The recommendations of the report focused on a range of issues. One particularly important area relates to industry development. Recommendation 11 refers to payroll tax concessions as a means of promoting the development of industry in rural areas of New South Wales. I note that some payroll tax concessions are made for certain growth areas situated east of the Great Dividing Range, but similar payroll tax concessions are not available for industries situated west of the Great Dividing Range, and that indicates something is amiss to say the least. The Government should examine that issue very closely and apply one rule for all. Payroll tax concessions should apply throughout the State. If the Government wishes to promote regional communities, perhaps it should consider taking affirmative action and concentrate on providing further concessions for areas of the State that have suffered terribly as a result of the prolonged drought. This is a bread-and-butter issue that the Government can take action to address, and I strongly urge the Government to do so.

Recommendation 12 suggests that a marketing and education campaign should be undertaken relating to native products, particularly kangaroo meat. I have always been very proud of the fact that Australia is the only nation in the world that eats its coat of arms. Anyone who has dined on kangaroo meat would have very much enjoyed it. Kangaroo skins are an important product in the manufacture of shoes and belts. The committee very strongly recommends promotion of native products. Suffice it to say that benefits from such industries generally accrue to regional areas of New South Wales, and it is particularly important during difficult times for those industries to be maintained.

The committee considered a range of issues associated with water regulation and the impact of the National Water Initiative upon regional areas of New South Wales. Recommendation 27 refers to the Commonwealth Government's role in implementing the National Plan for Water Security and the importance of ensuring that funds are not only available for water-saving initiatives but also directed to a range of innovations across large and small-scale irrigation properties. The recommendation focuses on the use of real-time telemetry in irrigation areas and the monitoring and management of water allocations. There was considerable discussion among committee members about fixed charges paid by irrigators and the difficulty faced by irrigators who at this time are not permitted to access water because of the low level of the river flows and the need to retain water for environmental flows. The reality is that irrigators pay fixed water charges that in some cases are well in excess of $100,000 per annum.

After some discussion the committee reached a compromise to retain its unanimous view and its constructive working relationship while providing some relief. The committee's report contains a recommendation that goes some way to potentially providing relief to all farmers and irrigators. However, I hasten to add my view that fixed water charges should be waived, particularly in light of the prolonged drought. Farmers should not have to pay for water they do not receive, regardless of how the charges are categorised.

There was some discussion about land use. Recommendation 36 states that the New South Wales Minister for Planning should adopt the key recommendations of the Central West Independent Review Panel. There are some useful ideas and recommendations in that report on this issue. It was disappointing that the committee did not receive any submissions from the timber industry. It has been brought to my attention that there are some land use concerns relating to the timber industry, particularly the overlap between the approval processes of local government and the Department of Environment and Climate Change for native vegetation plans. At the moment local government, despite the fact that the Department of Environment and Climate Change has already approved a property vegetation plan, is knocking some proponents back. These issues must be sorted out. I hope the Government will seek to do that to ensure that private forestry and other concerns are given the encouragement they deserve.

The report also considered infrastructure development. Recommendation 37 deals with the importance of developing sustainable integrated transport networks, including road, rail, sea freight and air in rural and regional areas. There is a lot of work to do in this critical area. Members will remember the debate about the transportation of grain to export markets, which is under threat because Pacific National has decided to pull out of that activity. I am not sure what we will do in September. The Government needs to take a leadership approach to this and to ensure that Pacific National and other relevant affected parties are brought to the table so that this major infrastructure problem can be resolved. In closing, I commend the report to the House, and I thank the committee for the opportunity to serve.

The Hon. MICHAEL VEITCH [3.12 p.m.]: It was interesting to listen to the contribution of the Hon. Matthew Mason-Cox. This was my first committee inquiry as a member of the Legislative Council. Having been born and raised—and still residing—in regional New South Wales, I was passionate about the inquiry and had significant interest in the committee's deliberations, as I am sure did all members of the committee. During the inquiry it was highlighted that agriculture offers regional New South Wales an identity—an aspect touched on by the Hon. Matthew Mason-Cox. One issue that was raised several times is the need to elevate the status of agriculture and rural New South Wales. The drought has had an impact on the psyche of the agriculture sector and the people who reside in rural areas, and it is beholden on us all constructively to promote agriculture and rural New South Wales.

The committee travelled widely and I was impressed by the way it went about its work. Obviously the environment in which the committee conducted its inquiry was constructive and positive, and I congratulate the members on that. Committee members brought to the table a breadth of knowledge about rural Australia, and they were keen to treat the inquiry seriously and not let politics get in the way of the recommendations. That is reflected in the recommendations and the report. It is a worthy report to assist in progressing agriculture in rural New South Wales. The committee travelled to Narrabri, Tamworth, Leeton and Cootamundra. As well as taking comments at public hearings, we held public forums where people could present their views, and we heard a wide range of views. There was not one issue on which we were unable to get both sides of the story. It was impressive to listen to that at the public forums.

I have one striking memory during this inquiry of standing in a waist-high field of canola at the property called "Denyer" near Cootamundra in September. It was a great canola crop. Within a fortnight, the crop had turned due to a lack of water, and the owners of the property lost the crop. Unfortunately we did not get a photograph of the crop before it turned, because there were many positive comments about it.

I turn now to the committee's work on industrial hemp. This was important in the sense that people have a breadth of views about whether industrial hemp should be promoted as another rotational crop for farmers. The committee recommended such a promotion and, further, that within the legislative framework industrial hemp be brought under the auspices of the Minister responsible for agriculture. During the inquiry one witness suggested that if a person smoked a truckload of industrial hemp and all he would get is a headache and a sore throat! Another interesting fact—I know Reverend the Hon. Fred Nile was impressed to hear this—is that wherever industrial hemp is grown successfully marijuana crops will fail. Industrial hemp nukes the illegal crops. That is something we should be pursuing. I am sure the Minister will read this report and take on board the committee's unanimous decision on that matter, because industrial hemp has the potential to become an important rotational crop.

The committee spent some time deliberating on the potential of native flora and fauna as commercial commodities. To achieve this, the psyche of predominantly metropolitan Sydney about the human consumption of some of our native flora and fauna must change. I am proudly standing in this place today wearing a pair of shoes made of kangaroo leather. People must promote such products if we wish to convince the metropolitan markets to purchase them. We cannot have a market if people do not buy the products. Importantly, the committee spent a bit of time considering the need to promote native flora and fauna. This Parliament has led the way. Late last year most members attended a kangaroo meat barbecue sponsored by the Hon. Tony Kelly and the Hon. Ian Macdonald here in Parliament House. Again, it is simply part of the process of promoting important native flora and fauna commodities.

The Hon. Robyn Parker: Do you skip better in those shoes?

The Hon. MICHAEL VEITCH: They are very comfortable shoes. Industrial hemp is an important crop. Native flora and fauna has the potential to become an important market. The Hon. Matthew Mason-Cox spoke about payroll tax. During the committee's deliberations it was pointed out that the majority of rural businesses do not pay payroll tax, so the calls to change the payroll tax arrangements may not benefit everyone. We need to exercise caution when amending or modifying the payroll tax arrangements in New South Wales. The Contract Harvesters Association raised the need for uniform road rules. Three different sets of road rules apply to the transportation of goods from Queensland to New South Wales and through to Victoria.

Differences in the road rules make it difficult for transport companies to conduct their businesses, a matter raised by them, particularly those involved in the transportation of livestock. Importantly, the committee, rather than be political, has recommended that the State Government show some leadership at the national level to draw up uniform road laws to assist contract harvesters in the transportation of their machinery. The livestock transport industry also has to contend with different road rules across State jurisdictions. The committee was positive and meritorious in its position that these matters were of such importance as to be beyond politics. Transportation towards ports was also discussed. I concur with what the Hon. Matthew Mason-Cox said in that regard. I was disappointed that the committee did not receive submissions from the afforestation or timber industries, which have an important part to play in rural New South Wales. The committee therefore did not spend sufficient time in rural New South Wales.

My final comments relate to the Central West review committee's report on the interface between urban and rural allotments—a matter raised at a number of forums. Minimum allotment sizes and land use have a definition that relates to the historical use of the land. Unfortunately, the definition does not talk about prospective use of land and, therefore, minimum allotment sizes. The interface between rural and urban allotments will continue to be a problem whilst that definition remains. I understand it is difficult to determine, but the committee heard about that issue in a number of places, and local areas really need to develop local solutions because of their local industry base. I extend my appreciation to all committee members. The inquiry—my first inquiry—was conducted in good spirit. I hope that future inquiries conducted by the Standing Committee on State Development are conducted in a similar spirit and with the same intent. I take this opportunity also to thank the committee secretariat.

The Hon. CHRISTINE ROBERTSON [3.22 p.m.]: Competing interests gave contradictory evidence about future direction in this interesting inquiry. I congratulate the Standing Committee on State Development on delivering this report. One very exciting issue related to science programs, which is covered in recommendation three. The committee visited Department of Primary Industries installations at Tamworth and Narrabri. I was most excited by the agricultural research being carried out at those installations. The department works in tandem with industry and academic institutions. I emphasise that despite the committee's positive recommendations with regard to science-based agriculture and its future, it was often fairly obvious that organisations have trouble convincing some sections of the farming industry to take it up. However, the committee visited some very exciting properties operating on a scientific base for the long-term future of their industry.

Recommendations 14, 15 and 16, which are about long-term resourcing, are the result of the drought and its effect on farmers—some of whom are beginning to turn the corner—to ensure that the resources that have come forward because of the drought will be available to rural communities in the future. Some farming communities will find it very difficult to address long-term resourcing; they will require assistance to adapt to huge social and demographic changes. And often that means changing what some perceive to be the most appropriate form of support.

The committee addressed also educational processes, particularly agricultural, across the board. A hopeful sign is the acceptance of new sciences, which, with education and support, will greatly assist individual farmers and their organisations. The report referred also to difficulties in relation to the National Plan for Water Security. The committee heard a lot of contradictory evidence from obvious competing interests about that matter. It is very exciting that the Federal Government is moving forward in this regard, and it is very important that the New South Wales Government also participate. Graziers, intensive producers, irrigators, mines, and river communities are all fighting for a share of the water. The report is about planning, production, harvesting, storage, marketing and transportation. It is about adaptation and change, and the ability of the State Government to respond to the needs of farming communities. The committee has put forward a number of recommendations for the consideration of many individual government departments in the future.

The Hon. TONY CATANZARITI [3.27 p.m.], in reply: I thank all members for their contributions and support for this report. I urge the Government to take up the committee's 38 recommendations, which were prepared in good spirit for the betterment of agriculture and rural communities.

Question—That the House take note of the debate—put and resolved in the affirmative.

Motion agreed to.