ID :
164972
Tue, 03/01/2011 - 11:35
Auther :
Shortlink :
http://m.oananews.org//node/164972
The shortlink copeid
Government defends cuts to drought relief
The federal government has defended its decision not to extend exceptional circumstances (EC) funding for a large chunk of southeastern Australia.
Labor last week adopted all of the recommendations of the independent National Rural Advisory Council by winding up EC declarations in 20 areas - 14 in NSW, five in Victoria and one in South Australia.
Their EC status will expire on March 31.
Only one declaration was extended, for the River Murray and Lower Lakes Corridor area in South Australia, until April 2012.
Agriculture Minister Joe Ludwig defended the decision to end the EC declarations in an address to a commodities conference in Canberra on Tuesday.
Australia needed a proactive rather than reactive strategy, Senator Ludwig said. EC funding, while providing much-needed cash relief, had not been shown to boost productivity in the farming sector.
"The reality is that the drought in southeastern Australia has broken," the agriculture minister said, noting that over $2.5 billion has already been paid in EC payments between November 2007 and December 2010.
"Despite this significant investment, in its current form exceptional circumstances assistance has provided support to farmers in drought, but has not bolstered or increased their productivity.
"The incentives in the EC system are not geared toward effective preparation both financially and in terms of farm practices for resilience."
Senator Ludwig said any future system must embrace contributions from both the states and the commonwealth.
The current drought pilot program operating in Western Australia was a good example, with the state government contributing around 20 per cent of funding, he said.
Labor last week adopted all of the recommendations of the independent National Rural Advisory Council by winding up EC declarations in 20 areas - 14 in NSW, five in Victoria and one in South Australia.
Their EC status will expire on March 31.
Only one declaration was extended, for the River Murray and Lower Lakes Corridor area in South Australia, until April 2012.
Agriculture Minister Joe Ludwig defended the decision to end the EC declarations in an address to a commodities conference in Canberra on Tuesday.
Australia needed a proactive rather than reactive strategy, Senator Ludwig said. EC funding, while providing much-needed cash relief, had not been shown to boost productivity in the farming sector.
"The reality is that the drought in southeastern Australia has broken," the agriculture minister said, noting that over $2.5 billion has already been paid in EC payments between November 2007 and December 2010.
"Despite this significant investment, in its current form exceptional circumstances assistance has provided support to farmers in drought, but has not bolstered or increased their productivity.
"The incentives in the EC system are not geared toward effective preparation both financially and in terms of farm practices for resilience."
Senator Ludwig said any future system must embrace contributions from both the states and the commonwealth.
The current drought pilot program operating in Western Australia was a good example, with the state government contributing around 20 per cent of funding, he said.
