Senator TROETH (Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry) (1:01 PM) —The amendments to the Farm Help Supporting Families through Change Program contained in the Farm Household Support Amendment Bill 2003 reflect the government's commitment to the development of self-reliant, competitive and sustainable rural industries. The Farm Help program provides a proven, effective safety net for farm families facing severe financial difficulties.

I have several government amendments which I will move in the committee stage of the bill but will briefly outline now. One government amendment to this bill is required to change the references to `farmer' in subitems 35(3), (4) and (5) to `person' in order to make a technical correction. These amendments will correct a reference within the transitional provisions and achieve consistency between these provisions of the Farm Household Support Amendment Bill 2003 and the eligibility criteria contained in the Farm Help Advice Scheme and the Farm Help Re-establishment Grants Scheme.

During the second reading debate on this bill on 9 October 2003 in the House of Representatives, my colleague the Minister for Agriculture, Fisheries and Forestry, the Hon. Warren Truss, responded to several questions from the member for Braddon, and I will take this opportunity to respond to those questions in order to inform the Senate. In response to the ANAO audit of Farm Help, the Department of Agriculture, Fisheries and Forestry is addressing the four recommendations relating to Farm Help in several ways. The ANAO recommendation in relation to the Farm Help certificate of inability to obtain finance has been addressed in this bill.

The two recommendations relating to performance measures and strengthening existing arrangements with service providers are currently being addressed with Centrelink. The department is working with Centrelink to apply a business assurance framework that will ensure that an appropriate performance measure for payment correctness is implemented for the Farm Help program. The development of this business assurance framework will also build on existing arrangements with service providers to ensure that they comply with legislative requirements. The fourth recommendation, relating to the interaction between the Rural Financial Counselling Services program and Farm Help, is amongst the issues being considered in the AAA package that will be part of the consideration for the next federal budget.

The proposed amendments contained in the Farm Household Support Amendment Bill 2003 will allow all farmers on the program to access the training grant, and this will increase program expenditure on a per capita basis. However, these enhancements will not impose any additional cost on the Commonwealth during 2003-04. Program costs during 2003-04, including the proposed enhancements, are expected to be met from within existing budgeted expenditure levels under the Agriculture Advancing Australia package. The government has allocated $20.7 million in 2004-05 for the Farm Help program for those on Farm Help before 30 June 2004. The future of Farm Help for new applicants beyond 30 June 2004 is currently being considered in the context of a new AAA package.

The disallowable instruments established under the Farm Household Support Act 1992 are to be amended to implement the program enhancements. The Farm Help Advice Scheme 1997 instrument is to be amended to specify the operational details of the combined Farm Help advice and training grant. The Farm Help Re-establishment Grants Scheme 1997 instrument is to be amended to extend the closing date for applications for the re-establishment grant to 30 June 2004 and to clarify the eligibility criteria for the grant so that it is paid to people for whom it was intended—that is, farmers who have been, and continue to be, reliant on the farm for their livelihood prior to its sale.

The amendments to the disallowable instruments are currently being drafted. These amendments cannot take legal effect until the relevant amendments in the Farm Household Support Amendment Act 2003 are in force. It is intended that the amendments to the instruments will take effect at the same time as the Farm Household Support Amendment Act 2003 receives the royal assent, and the amendments to the instruments will be tabled in parliament within 15 days of taking effect. I trust that that has answered the questions that have been raised. I thank senators for their support of the Farm Household Support Amendment Bill 2003 and I commend the bill to the Senate.

Question agreed to.

Bill read a second time.