Dick Adams (Lyons, Australian Labor Party) Share this | Hansard source

The Rural Adjustment Amendment Bill 2009 amends clause 7 of the Rural Adjustment Act 1992 to allow for the appointment of National Rural Advisory Council, NRAC, members for three terms. The National Rural Advisory Council is a skill based independent advisory council to the Australian government Minister for Agriculture, Fisheries and Forestry. The NRAC was established in December 1999 as a statutory consultative body, following legislative changes to the Rural Adjustment Act 1992. It replaced the Rural Adjustment Scheme Advisory Council and expanded the range of roles and functions of the original council. The NRAC advises the Minister for Agriculture, Fisheries and Forestry on rural issues, including the exceptional circumstances applications and the extensions to EC declarations.

The proposed amendment will remove the current provision that a person may, on one occasion only, be reappointed as a member. The Rural Adjustment Act 1992 specifies that the NRAC’s main role is to provide advice on rural adjustment and regional issues, including whether areas should be assessed as being exceptional circumstances areas. This bill will ensure that current or previous members who have developed considerable expertise in understanding exceptional circumstances assessments through membership for two terms can serve a third term and continue to contribute to the NRAC.

Currently the NRAC consists of a chairperson and not more than seven other members. The members are appointed by the minister on a part-time basis. At least one member is appointed to represent the states; at least one member is an officer of the Department of Agriculture, Fisheries and Forestry, who is appointed to represent the Commonwealth; one member is appointed to represent the National Farmers Federation; and the other members are appointed because of their expertise in economics, financial administration, banking, sustainable agriculture, regional adjustment, regional development, farm management or training.

When the Australian government receives an application for EC the minister may refer it to the NRAC for assessment, if he agrees that a prima facie case has been established. As part of its assessment, the NRAC may conduct an inspection tour of the affected region. On completion of the assessment, the NRAC presents its recommendations to the minister, who, after consulting with the Australian government, has responsibility for declaring whether or not a particular area is experiencing exceptional circumstances.

A streamlined review process was introduced by the last government to make it easier for farmers who have not experienced a break in the drought to have their EC declaration assessed for a possible extension. Under the review process the NRAC reviews exceptional circumstances declared areas before their expiry date to assess whether an extension to the declaration is warranted. As part of the review the NRAC assesses information from a number of sources, including the National Agriculture Monitoring System, analysis provided by the Bureau of Rural Sciences, the Australian Bureau of Agriculture and Resources Economics, state and local governments and local producers. Additionally, the NRAC may undertake an inspection tour of the area. If the NRAC assesses an area as no longer being an exceptional circumstances area and the minister accepts the advice not to extend the declaration, assistance ceases on the date the declaration ends. If the NRAC supports extending the declaration and the minister agrees, assistance continues until the new declaration end date comes about.

The definition of ‘exceptional circumstances’ is that it must be rare, not having occurred more than once in an average of 20 to 25 years. So one can see that we are looking at changing that into the future with the advice we are receiving on climate change. It must result in a rare and severe downturn in farm income over a prolonged period of time; for example, greater than 12 months. It cannot be planned for or managed as part of the farmer’s normal risk management strategies, and it must be a discrete event that is not part of long-term structural adjustment process or normal fluctuations in commodity prices.

It is important to keep some continuing process going for the NRAC so that there is uniformity in decision making and so that the members of the council are fully familiar with previous decisions and how to read the exceptional circumstances situation. I am sure the member for Barker would agree with me.

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