Senator BOSWELL —My question is directed to the Minister for Primary Industries and Energy and I refer to the minister's recent visit to rural Queensland, where he was reported as praising the Queensland grain growers drought recovery package. Will the minister confirm that the exceptional circumstances RAS funding is to continue after 30 June? When does the minister expect to finalise discussions with the Queensland government on the Queensland farmers' proposal to set up a rural adjustment unit?

Senator COLLINS —If Senator Boswell is aware of my discussions in Queensland, he would be aware that I advised a large number of farmers and their representatives from the peak bodies that the question of exceptional circumstances for Queensland drought affected farmers was a matter that will be reviewed in cooperation with me and the Minister for Finance. The terms of reference for that review have only just been completed. When the actual review commences, officers of my department will liaise directly with the peak bodies concerned. During the conduct of the review there will be wide consultation on it.

  I am very pleased to say in passing, as Senator Boswell knows, that I visited Queensland a few days ago and, in cooperation with the farmers' groups, had proposed to visit the worst drought affected areas that had not received any substantial rain for up to four years. The itinerary had been suggested to me by those grower groups. As Senator Boswell would be aware, the trips to those areas had to be called off after I arrived in Queensland because the areas had been flooded and were under six inches of water.

Senator Schacht —Did you do that?

Senator COLLINS —No. I am not taking credit for that; I do not want to be blamed for the floods. I am pleased though, of course, for the growers concerned that have had, in a lot of cases, seven or eight successive crop losses on the trot. I am quite sure they would have been much happier swimming around in the rain than sitting down talking to me about the drought. But, for the advice of Senator Boswell, that matter is under consideration at the moment.

  In respect of the proposals that were put to me by the Queensland grain growers association to effectively have the state delivered element of RAS delivered as part of a single body and to have a more cohesive method of delivering it, as I said publicly at the time, that proposal in my view does have merit. This morning I finalised the letters that I will be sending, probably later today, to the relevant ministers in the Queensland government to get their reaction to it.

  Currently, the Commonwealth funds RAS very extensively. I think the current budget is in the order of $176 million of Commonwealth funding to RAS. If there is a better way of delivering that assistance to farmers we are certainly prepared to consider it; but the agencies that actually deliver it on the ground are agencies of the state government. Again I stress—because I made it very clear while I was in Queensland—that it will effectively be a decision of the Queensland state government as to whether the proposal has merit or not. But I will be communicating that to the Queensland government this week and I will be quite keenly awaiting its response.

Senator BOSWELL —Mr President, I ask a supplementary question. During the minister's visit, he was widely reported as recognising that the drought is not over and that it will take a couple of years for farmers to get back on their feet. In light of this and the inability of most farmers to qualify for RAS or JSA, can he give us any ideas that he may have received there on what practical relief measures his government will initiate to prevent excessive debt from claiming a significant proportion of farmers?

Senator COLLINS —As I am sure Senator Boswell is aware, these are matters for consideration in the current budget process. For that reason, I am not able to go into any further detail on them with him. But I can certainly confirm that I am well aware, and have publicly acknowledged, that the rain, as welcome as it is—it has been very beneficial, heavy rain—will go a great way towards replacing the subsoil moisture content that has been progressively removed from the soil there for the last four or five years. Despite the fact that that rain has been received, it will take growers some time to recover from the drought. The recovery period for those people who are turning off livestock, rather than those who grow grain, will be even longer.