Mr FORREST —My question is addressed to the Minister for Agriculture, Fisheries and Forestry. I ask the minister what his response is to the many requests for exceptional circumstances for the grain industry all around Australia, savagely ravaged by low yield from poor rain, extreme frost, and damaging late spring rainfall.

Mr VAILE (Agriculture, Fisheries and Forestry) —I thank the honourable member for Mallee for his question. Members may be aware that there is a forecast of a record wheat crop this year of some 22 million tonnes. But in amongst that, some severe climatic conditions have hit a number of areas of Australia. Yesterday I spent the day with the member for Mallee in his electorate in Victoria visiting some of the farmers who have been seriously affected by frost and by drought, which will have an effect on their income this year. There will also be a social impact on their family lives and on their local communities as we move through the spring and summer months.

I inform the member for Mallee that I understand that there will be applications coming forward for exceptional circumstances in those areas. I will be getting the RASAC committee to have a look at those applications and to measure them against the very rigorous technical requirements that exist. Whilst we were visiting north-western Victoria yesterday we pointed out that there are rigorous requirements and criteria that must be met. I understand that there is an application in from the south western grains area in South Australia on the same basis. We have also referred that to RASAC for their assessment.

Whilst talking to the grain growers in Victoria yesterday they expressed to us their appreciation of the reform measures that our government has undertaken to get the economy right. They appreciate the fact that we have a low interest rate regime at the moment that is underpinning their businesses. They appreciate the fact that we have stabilised the Australian economy, which is only going to benefit them. They appreciate the fact that we have introduced farm management bonds which they can use as a risk management tool in the future. I urge those farmers who are going to produce a good crop this year to take advantage of those tools. We are also going to look at what opportunities there may be for more flexibility in terms of insurance for the risks that they face. I thank the member for Mallee for the opportunity of meeting with the farmers in his electorate yesterday in those circumstances. I assure them that we will be taking their concerns very seriously.