Alan Ferguson (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for the Arts and Sport, Senator Kemp, representing the Minister for Families, Community Services and Indigenous Affairs. Will the minister update the Senate on government programs to assist communities experiencing the social consequences of drought?

Rod Kemp (Victoria, Liberal Party, Minister for the Arts and Sport) Share this | Link to this | Hansard source

I thank Senator Ferguson for raising this very important question, which is of great interest to many Australians in regional and rural Australia. There is no doubt that the current prolonged and severe drought is having a significant effect on communities. At times like this, local communities need to be supported and opportunities need to be identified to develop new skills, to support children and their families and to foster proactive communities.

In response to this need, the coalition government has announced a special $10 million round of our successful Local Answers grants program, entitled Strengthening Drought Affected Communities. This program specifically targets areas declared to be in exceptional circumstances or areas that can demonstrate hardship as a result of the drought. Applications for the Strengthening Drought Affected Communities initiative opened on Friday, 24 November, and will close on 20 December 2006. Advertisements seeking applications to the program appeared in last weekend’s press. The initiative is designed to strengthen communities by funding local, small-scale, time-limited projects to help communities to build skills and social supports. Organisations can apply for funding of between $3,000 and $300,000 for each project for a period of up to two years.

The Australian government is committed to listening to local communities and using their knowledge and experience to develop effective, practical solutions specific to local communities and their needs in time of drought. The funding under the Local Answers program is in addition to the $1.2 billion of Australian government funds already spent on drought assistance measures to date. The government has announced an additional $1.1 billion in drought assistance measures in the last two months alone. This brings the Australian government’s total package of measures to help communities and individuals through this very difficult time to more than $2.3 billion.

During October and November 2006, the government announced an additional $910 million to support farmers and their families and an additional $200 million for small businesses. This represents an average of $7.3 million in assistance each week. The government has also reintroduced exceptional circumstances assistance to all eligible farmers in 58 declared areas across Australia until 2008, irrespective of what they produce. The government recognises that the prolonged drought is affecting not only farmers but also the small businesses that service them. More than 5,000 small business operators—from contract harvesters to feed producers and fertiliser suppliers—may now be eligible for income and business support. Other measures that this government has recently introduced to support rural communities include grants of $5,000 to farmers in EC-declared areas to obtain professional, business and planning advice; an increase in the Farm Management Deposits scheme cap; and an increase in the non-primary production income test threshold for Farm Management Deposits.

The Australian government will continue to support farmers throughout the drought until they have had the opportunity for a sustained recovery. We want to maintain the long-term viability of our farming families and communities. The Australian government will continue to review the assistance we provide to drought-affected farmers to ensure that it meets their needs and provides the support necessary to manage these prolonged dry conditions. (Time expired)