Department of the Legislative Assembly, Northern Territory Government

Ms ANDERSON - 2007-02-15

Family owned pastoral properties in Central Australia are in the grip of one of the Territory’s worst droughts on record. What Minister, what impact has the recent scattered showers and isolated falls had on Central Australian pastoralists, and what is the Northern Territory government doing to assist these family businesses?

ANSWER

Madam Speaker, this area is very dear to the member for Macdonnell’s heart, being part of her electorate. As she said, many families have a lot of history in that area. Pastoral properties around Alice Springs are in the grip of one of the worst droughts on record. The Alice Springs pastoral district accounts for over 20% of the Territory’s total beef industry performance, generating an estimated gross value product in 2004-05 of $55m. The contribution of the southern district saw a downturn in 2004-05 to $150.5m, a clear indication of the severity of the drought. The sector is a strong and vibrant part of the Territory, but , unfortunately, many families are struggling and are in need of assistance.

One pastoralist in Central Australia has told us that he has not had summer rains for five years. It is incredibly tough for young owners, being forced to find other work off the property, simply to survive. As I said, many of these young owners have family heritage in the district and their families have been on the land for many years.

The recent rains are welcome, but they did not cover the whole proposed EC declaration area. Follow-up rains will be required to make a genuine recovery from the drought, and it will take a number of years for properties to fully recover. Central Australia has made a significant contribution to the northern Australian pastoral industry and the Northern Territory economy for more than 100 years. The reason that the industry has existed so successfully for this period is that in the normal course of events, it is sustainable and profitable and manages normal seasonal variations.

The drought experienced in the south and east of Alice Springs is, indeed, an exceptional circumstance. It is beyond what we would normally expect and our businesses to plan for. It has left many producers in the position of rare (inaudible) and severe financial and social hardship. We are talking about a one-in-25 year event.

With the support of the Northern Territory Cattlemen’s Association, we have lodged an application to with the Commonwealth government for Exceptional Circumstances assistance. We placed that before the federal minister earlier this week. This application covers the incredibly dry period between October 2003 through to September 2006. It is a comprehensive and complex document, which was developed in full partnership with the Northern Territory Cattlemen’s Association. I thank them for their input and, of course, the members of my department, who have worked tirelessly to help the pastoralists in the area to get some recognition for this EC project.

If the Commonwealth supports the Northern Territory government’s application, financial assistance will be available to the affected pastoralists to apply for support, given the severe downturn in income experienced. The Northern Territory government has already extended drought assistance to the properties, and we hope the federal government will view the EC submission favourably.
Last updated: 09 Aug 2016