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 Drought aid reforms not in federal budget 

Drought aid reforms not in federal budget

06 May, 2009 02:00 AM
MAJOR reforms to drought assistance, expected to be announced next week, are still not ready and won't be included in this year's Federal Budget.

It's understood the reforms have not been finalised and there is a lot of detail still to be gone through, according to Government sources.

They would not say whether the failure to include the reforms was also because of the significant pressure on this year's budget and the large looming deficit expected to be unveiled next Tuesday night.

The reforms were one of the Government's key rural election commitments and topped this year's budget wish list from the National Farmers Federation.

Last year Minster for Agriculture, Tony Burke, commissioned three separate studies to help shape the reforms – a climate study by the Bureau of Meteorology, an investigation of the social impacts of drought and report by the Productivity Commission investigating the economic pros and cons of drought assistance measures.

A draft report from the Productivity Commission was handed to the Government late last year and the final report has been done for some, but has not been tabled in Parliament and, therefore, not publicly available.

The Government says it hopes to table that report "in the near future" which could be as early as next week.

The draft controversially recommended that current exceptional circumstances drought assistance cease for all recipients by the middle of next year – something strongly opposed by farmers, and there are expectations that recommendation will change in the final report.

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The Government's new-look drought assistance policy will not be included in next week's federal budget.
The Government's new-look drought assistance policy will not be included in next week's federal budget.
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