In ominous signs on the economic front in Australia, today's news carries this leading story:
| 19:06 AEST Sun 8 Dec 2002 | |||||
| Drought labelled worst in history
The current drought would be the worst in Australian history, the nation's peak farming body says. National Farmers' Federation president Peter Corish said reports from primary producers across the nation suggested many areas faced their driest period on record. The Federation drought that ended in 1902 is generally regarded as the nation's worst, with sheep and cattle numbers halved and the wheat harvest crippled. This year's drought has hit more than 70 per cent of the nation, with crop production expected to be down almost 60 per cent. Mr Corish said there appeared to be little chance of relief.
"This drought is heading towards perhaps being the worst on record," he told ABC television.Prime Minister John Howard is expected to announce a package of measures worth several hundred million dollars this week. Direct cash payments of up to $60,000 to farmers are expected, as is a revamped work for the dole program that would result in unemployed people sent to farms to carry out work. The government is also considering paying farmers the equivalent of unemployment benefits to cover the cost of employing farm hands. New technical criteria for assistance are likely to form part of the package. Mr Corish said the federation had been in close talks with the government about what was needed to help farmers, and rural communities, through the drought. "We put forward a proposal to the government only (Saturday) to come up with some restart assistance to help people on the ground back into restocking and replanting (with) grants or long term loans," he said. "When the situation does come around the drought does break it will be very important to get those farmers back into production." Mr Corish said apart from the new package, he expected many parts of rural Australia to qualify for Exceptional Circumstances (EC) drought relief which is already expected to cost the federal government almost $400 million. President of Queensland farm lobby group Agforce, Larry Acton, doubted the effectiveness of the work for the dole proposal. "I'm just not sure how much of a take-up will be on the work for the dole program," he said. "If there's going to be any benefit at all it will be those workers and families who have been laid off because of the drought will want to get back on the farm and work. The drought's impact on livestock is continuing to come through in meat and sheep figures. Meat and Livestock Australia said the average weight of sheep going to slaughter had slipped almost 15 per cent because of the lack of feed and water. But the number of sheep going to sale is up 10 per cent because farmers are finding it increasingly difficult to keep their livestock alive.
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