Dairy legislation introduced

Federal Agriculture Minister Warren Truss today introduced to Federal Parliament The Dairy Produce Legislation Amendment (Supplementary Assistance) Bill 2001 to deliver $140 million of additional Federal assistance measures for dairy farmers and dairy communities.

 This assistance, announced on Monday, specifically targets dairy farmers and communities who were the most affected by the deregulation of Australia's milk market.

Minister Truss has appealed to the Opposition and Democrats to support the smooth passage of the legislation so that dairy farmers and communities can receive payments as soon as possible.

"The Federal Government is providing this additional assistance after a report by the Australian Bureau of Agricultural and Resource Economics highlighted that many dairy incomes had fallen more than farmers expected and that most States have done almost nothing to assist dairy farmers to adjust to deregulation," he said.

"The continuing refusal of the Queensland and NSW Governments to provide compensation for State-based milk price support arrangements has forced the Federal Government to once again step in and offer a further $140 million on top of the $1.78 billion assistance package launched last year.

"The ABARE report clearly showed the decline in market milk prices has been greater than many farmers expected, particularly in the former quota states of NSW, Queensland and Western Australia.

"It was the States which introduced the milk quotas, the States which administered the milk quotas and the States that eventually made milk quotas worthless - yet despite a clear obligation to provide adjustment assistance, the States have totally ignored their responsibilities.

The new $140 million package includes:
· $100 million in supplementary market milk payments to dairy farmers who were most heavily dependent on market milk production,
· $20 million for eligible people who, because of extraordinary circumstances, were excluded, or their entitlements were significantly lower than normal, under the Government's Dairy Structural Adjustment Program (DSAP), and
· a $20 million expansion of the Dairy Regional Assistance Program (Dairy RAP).

The additional market milk payments will be made to people with an interest in farms that were dependent on market milk returns for more than 35 per cent of the milk they delivered in 1998-99. Payments will be made to people who were granted an entitlement under DSAP, and who can demonstrate they were actively involved in a dairy enterprise on May 21.

Ends

Yvonne Best - Media Adviser
02 6277 7520 0418 415 772
yvonne. best@affa.gov.au

www.affa.gov.au