Fed: Ag ministers fail to agree on EC system

AAP General News (Australia)
08-17-2001
Fed: Ag ministers fail to agree on EC system

By Shane Wright

CANBERRA, Aug 17 AAP - Australia's agriculture ministers could not agree today on a
new way to help farmers hit by drought.

The ministers, sitting in Darwin, had been expected to strike an agreement on cost-sharing
for the exceptional circumstance (EC) system in place to help farmers hit by extreme drought
conditions.

The issue has been brimming for several years and has hit home in the past six months
because of drought in West Australia's sheep-wheat belt and in Queensland's south-west.

Although a steering committee has looked at the issue since the start of the year,
the ministers have called for another report.

This will examine the cost-sharing problem, and should be with the ministers by the
end of the year.

"Fundamental to new arrangements is the question of more equitable funding responsibilities
between the commonwealth and the states, as well as discussions on other EC reform measures,"

the ministers said in an official communique.

Federal Agriculture Minister Warren Truss said the commonwealth was being forced to
carry too much of the financial responsibility for the cost of EC declarations.

"Currently the Commonwealth meets 96 per cent of the cost of an EC declaration and
the view obviously is that we need to have a better sharing of arrangements," he told
ABC radio.

Despite the problem, the ministers did agree to open up EC applications to farmers
who may be just outside the area declared as being eligible for special funding.

In WA, many farmers have complained that they have been excluded from EC funding because
of arbitrary divisions over the extent of drought conditions in the state.

EC declarations allow farmers to apply for interest subsidies to help them survive a drought.

AAP sw/kjp/cjh

KEYWORD: EXCEPTIONAL

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