Senator O'Brien asked the Minister representing the Minister for Primary Industries and Energy, upon notice, on 15 April 1998:

(1) When did the New South Wales Government first apply for drought exceptional circumstances (DEC) assistance for the Monaro district.

(2) (a) When did the Rural Adjustment Scheme Advisory Committee (RASAC) inspect the region; (b) when was the RASAC report provided to the Minister; and (c) when did the Minister advise the New South Wales Government of his decision.

(3) If the application was rejected, what was the basis of the rejection.

(4) Were subsequent applications made by the New South Wales Government if so: when were they lodged; (b) when did RASAC inspect the region; (c) when did it report to the Minister; and (d) when was the New South Wales Government advised of the Minister's decision.

(5) What was the basis of the decision in respect of the application.

(6) (a) What area was covered by the New South Wales Government's successful application for DEC for the Monaro district; and (b) how many farm families were in the area covered by the application.

(7) (a) What percentage of the area covered in the application was approved for DEC assistance; and (b) how many farm families are in that area.

(8) (a) How many farm families have qualified for farm household assistance and business support; (b) how many families failed to qualify for family and/or business support; and (c) on what basis was each application rejected.

(9) With reference to a statement by the Minister, in answer to a question without notice on 7 April 1998, that more people receive more assistance than was possible under the arrangements in place under the previous Government, with the exception of the extension of the recovery period, to what other variations to the previous DEC arrangements was the Minister referring.

(10) (a) How many people are currently in receipt of DEC assistance; and (b) what is the average value of that assistance.

(11) (a) How many people would have been in receipt of DEC assistance under the program administered by the previous Government; and (b) what would have been the average value of the assistance.

Senator Parer (Resources and Energy) —The Minister for Primary Industries and Energy has provided the following answer to the honourable senator's question:

(1) The New South Wales Government first wrote to the Minister for Primary Industries and Energy on 6 August 1997 to request DEC assistance for the Monaro district.

(2) (a) RASAC inspected the Monaro region on 15 September 1997.

(b) On 19 September 1997, the New South Wales Government requested that the Monaro application no longer be considered under DEC, and instead be assessed under general exceptional circumstances (EC). On 16 October 1997, Minister Anderson wrote to the New South Wales Minister for Agriculture requesting clarification of the event for which EC assistance was being sought and requested that additional information to support the application be provided promptly. RASAC provided its report to Minister Anderson on 21 October 1997. On 11 November 1997, the New South Wales Government provided additional information for consideration in the assessment of their application. On 15 December 1997, the Government decided not to provide EC support to the Monaro Region but requested that RASAC reassess the region in early 1998.

(c) Minister Anderson advised the New South Wales Government of this decision in writing on 31 December 1997.

(3) The government accepted RASAC's findings that the specified area of the Cooma region did not meet the criteria for EC as

. overall rainfall for the last three years had been near average;

. pasture is naturally of poor quality but could be improved;

. weed infestation was similar to that in the Greater Monaro Region; and

. livestock numbers had declined but no more so than in other areas of New South Wales.

(4) (a) On 30 January 1998, the New South Wales Government provided Minister Anderson with supporting information for the reassessment of the Monaro region.

(b) RASAC inspected the Monaro Region on 2 February 1998. On 5 February, the New South Wales Government amended the boundaries of the Monaro Region application area (henceforth known as Monaro Region A), increasing its area by approximately one third. In addition, on 9 February 1998 it was requested that an additional area (known as Monaro Region B) to the south of the original Monaro application area be considered for EC assistance.

(c) RASAC reported to Minister Anderson on 18 February 1998 for Monaro Region A and 3 April 1998 for Monaro Region B.

(d) The New South Wales Government was advised of the Commonwealth Government's decision in relation to Monaro Region A on 3 March 1998 and for Monaro Region B on 8 April 1998.

(5) Conditions in Monaro Region A were considered to have deteriorated since RASAC's previous visit. An EC was declared based on the impact of a succession of adverse climatic and biotic events. Monaro Region B was declared in DEC as it met all criteria including the threshold meteorological criterion.

(6) (a) Monaro Region A is bound on:

. the east from Cooma to Numeralla Road to the Numeralla River;

. the south along the Numeralla River to the Kydra Nimmitabel Road. East to the junction with the Snowy Mountains Highway at Nimmitabel;

. the west to the Monaro Highway junction;

. west down to the Monaro Highway to Bibbenluke;

. west on Bukalong Road to Bukalong Creek;

. south and west downstream of Bukalong Creek to Bombala River to the Delegate River to the Snowy River to the eastern boundary of Kosciusko National Park, following the Kosciusko National Park north west to Pot Hole Creek;

. north up Pot Hole Creek to the watershed on Beloka Range. Following the watershed along the Beloka and Barney's Ranges to the Berridale Rocky Plain Road at the Gap east along the road to Wullwye Creek;

. north up Wullwye Creek to Berridale Middlebank Road, at Growlers Gully then north to Middlebank; and

. east on road from Middlebank to Cooma.

Monaro Region B:

. extends south along the Monaro Highway from Bibbenluke (the boundary of Region A) to Bombala, continuing south along the Monaro Highway to Little Plains River;

. continuing south downstream along the Little Plains River to the NSW border at Bendoc Upper;

. north west along the NSW border to the boundary of Kosciusko National Park; and

. north along the east boundary of Kosciusko National Park to the junction of the Snowy River (the boundary of Region A).

(b) It was reported by the New South Wales Government that there are approximately 150—160 landholders in Monaro Region A and 78 landholders in Monaro Region B whose land has a carrying capacity of 1 500 DSE or greater.

(7) (a) 100 per cent of the areas covered in the two applications were approved for either EC or DEC assistance.

(b) See answer to 6 (b) above.

(8) (a) To date, there are 39 applications which have been approved for Exceptional Circumstances

Relief Payment (ECRP) in Monaro regions A and B. Of the 12 applications received for DEC Interest Rate Subsidy (IRS) there is only one approval to date.

(b) As at 27 April 1998, there had been 3 unsuccessful claims under the ECRP. No DEC IRS applications have been rejected to date; eleven are still under consideration.

(c) All ECRP applications which have been unsuccessful failed due to the off-farm assets test.

(9) In addition to Drought Exceptional Circumstances, the Government gives recognition to Exceptional Circumstances that are beyond the scope of normal risk management, and that in these circumstances it is in the national interest for the Government to provide assistance.

A new Exceptional Circumstances Relief Payment (ECRP), equivalent to the previous Drought Relief Payment, has been established and is available to eligible farmers in declared Exceptional Circumstances. In assessing Exceptional Circumstances there is no meteorological trigger criterion.

This is in addition to an extension of the recovery period for Drought Exceptional Circumstances, from six to 12 months.

(10) (a) As at 1 May 1998, there were 2,743 farmers across Australia in receipt of ECRP. As at 31 March 1998, there were 1,093 DEC IRS recipients.

(b) During April 1998 the average value of ECRP assistance paid to each farm family was $1,010 per month.

(11) (a) Income support (Drought Relief Payment) under the previous Government from Oct 1994 (the commencement of DRP) to Feb 1996 is shown in the following table:

(b) Business Support Assistance in the form of DEC IRS provided by the previous Government from 1993-1994 to February 1996.