Kay Hull (Riverina, National Party) Share this | Link to this | Hansard source

My question is addressed to the Deputy Prime Minister and Minister for Trade. Would the Deputy Prime Minister and Minister for Trade update the House on the performance of Australian agricultural exports? What are the threats to this performance, particularly in my electorate of Riverina?

Mark Vaile (Lyne, National Party, Minister for Trade) Share this | Link to this | Hansard source

I thank the honourable member for Riverina for her question. Of course, it is well known that agricultural exports are a very important component of Australia’s overall export earning effort. Figures released on Friday show that in the month of July agricultural exports rose by two per cent. Foremost amongst those were exports of grains, which were up $22 million or five per cent; and wool, which increased by $16 million or seven per cent. Notwithstanding those results in July, the major threats to our ability to earn more income from agricultural exports are probably climatic conditions and the advent of drought. As the member for Riverina would know from her own area, drought has been a significant handbrake on agricultural production in this country for almost a decade in different parts across Australia. We need to recognise that and always be prepared to help out our agricultural producers.

Interestingly, at the moment 98 per cent of New South Wales is either in drought or marginally getting close to being in drought. Irrigators in the Goulburn system in Victoria’s food bowl have been allocated only 17 per cent of their water rights at this stage, and more than 60 per cent of Queensland has been drought declared. Obviously, the greatest impediment to increasing our agricultural exports is drought, and it is something that none of us have any control over. But we do have some control over the level of assistance that we are able to give to Australia’s farmers. Forecasters were predicting last week that this year’s grain crops may only be half the size of last year’s, and that will have a profound impact on Australia’s exports of that product next year.

As a result of drought the Australian government has provided over $1.1 billion in direct welfare and business support to farmers through the exceptional circumstances program administered by the Minister for Agriculture, Fisheries and Forestry. That has assisted 53,000 applications from drought ravaged parts of Australia. It is a very important program that helps people get back on their feet very quickly and back into the production cycle to make that very important contribution to Australia’s export effort. The coalition government recognises the ongoing impact of drought on farm families in rural communities and we will continue to support them during these difficult times when they are being dramatically affected by the impact of drought.