Farmers welcome drought package

PM - Monday, 30 May , 2005 18:21:00

Reporter: Alexandra Kirk

MARK COLVIN: Farmer organisations have welcomed the Government's drought package. They say it will
give renewed hope to thousands of struggling farming families.

Some talk of a much-needed psychological boost for farmers who still have no prospect of
drought-breaking rains. Many farmers will receive a boost in assistance, while others, who've
endured four years of drought, will now receive drought aid for the first time.

Alexandra Kirk reports from Canberra.

ALEXANDRA KIRK: Real pressure was applied to the Government when 2,000 farmers turned up to a
drought summit at Parkes, in New South Wales, a fortnight ago.

That galvanised the Government into action, with the Prime Minister visiting one of Australia's
most drought ravaged regions in the State's west.

Mal Peters, the head of the New South Wales Farmers' Association, which organised the summit, has
congratulated the Prime Minister for responding so quickly.

MAL PETERS: The fact that he took the time to go out and have a look around was certainly a huge
moral boost to people. And now to have some major changes made that we've been fighting for, for
five years, it certainly will make farmers feel as though they are a worthy part of the Australian
society.

ALEXANDRA KIRK: Phillip Larwood is one drought stricken producer who got the chance to tell the
Prime Minister first hand how his family is surviving, when Mr Howard visited the 15,000 hectare
sheep station in south western New South Wales.

The money his wife earns as a primary school teacher in the nearby town of Wentworth stopped them
from qualifying for any assistance, despite four years of drought.

Phillip Larwood thinks they may get some help, now, for the first time.

PHILLIP LARWOOD: It would give us a chance I think, because at this stage we've got no hope, just
because my wife's working. If she's working at all, then you virtually limit your chances of
getting any assistance whatsoever.

ALEXANDRA KIRK: So you haven't been getting any drought assistance?

PHILLIP LARWOOD: No.

ALEXANDRA KIRK: And do you think it will help a lot of people?

PHILLIP LARWOOD: I think so, yes. I think it should be of quite some benefit. Just chucking money
around is not necessarily the answer, but this, with my farm income being increased, and interest
rate subsidies up a bit - that's got to be of some benefit for sure.

ALEXANDRA KIRK: The nation's peak farm lobby group, the National Farmers Federation, says the
drought package will help ease the burden of such a long and severe drought.

President Peter Corish says it will also act as a psychological boost for many farmers.

PETER CORISH: Oh absolutely. There is currently some 30,000 farmers receiving exceptional
circumstances drought relief. We believe that that could increase by around 20 per cent.

Like Mal Peters, Peter Corish too is vowing to continue to push for cash grants for farmers.

PETER CORISH: We were hoping to see grants being made available as an alternative to the interest
rate subsidies. A grant would give the farmers more flexibility to apply that money where they see,
as the most need is required. That's something we'll continue to push for and negotiate hopefully
longer term.

ALEXANDRA KIRK: But do you think that's something that taxpayers would wear?

PETER CORISH: Well the suggestion we're making is that farmers have the alternative of either the
interest rate subsidy or the grant - not both. So there would be no additional burden at all on
taxpayers as a result of that change.

ALEXANDRA KIRK: Many have highlighted the importance of one of the smallest financial outlays - $9
million for extra counselling and household support.

Brian Dodson is a rural financial counsellor who's trying to cover a vast area of New South Wales.
He says the package will make a lot of difference to farmers he sees.

BRIAN DODSON: I think it's fabulous actually. I think one of the major problems that people have
had in the backcountry, is that they've basically felt as if they've been on their own. And I think
with the recognition by the Federal Government that they in fact are feeling and equally concerned
about people that live in the backcountry, I think from an emotional point of view, I think it's
really tremendous.

ALEXANDRA KIRK: Despite the Government's big outlay, Mr Dodson thinks the nation's purse strings
could be loosened one more time.

BRIAN DODSON: The Prime Minister and the Minister for Agriculture, Warren Truss, have perhaps got a
little bit up their sleeve down the track. One of the issues that they would probably be looking
at, when the weather or the drought does break, I suspect that there would be interest rate
subsidies on restocking as well as recropping loans. That was something that has been thrown around
for some time, and I suspect that there may be a little bit more in the package than has come out
today.

MARK COLVIN: Brian Dodson, a rural counsellor from far south-western New South Wales, with
Alexandra Kirk.