Federal Parliament has approved a $1 billion emergency funding package for drought-stricken farmers and those affected by equine influenza.

Minister for Agriculture, Fisheries and Forestry Tony Burke said the funding was urgently needed to ensure farmers and those in the horse industry continued to receive support.

The total package of $1.052 billion is outlined in two appropriation bills which were passed yesterday, including:

• $691.3 million for on-going Federal funding for families and farm businesses affected by the drought, including those in Exceptional Circumstances-declared regions
• $7.8 million for interest rate subsidies to support small businesses that depend on business from farmers in Exceptional Circumstances-declared regions
• $97.2 million to reimburse the states and territories for funds they spent fighting equine influenza, most of which will be recovered from industry, and
• $255.7 million for financial aid to individuals and businesses in the horse industry following the equine influenza outbreak.

The equine influenza assistance has been extended for those in restricted zones until 14 March 2008 or until movement restrictions are lifted.

“I have been meeting with farmers across Australia and have seen first-hand how much they are still suffering from this terrible drought,” Mr Burke said.

“We will continue to support working families in the bush and help them survive the hard times, because they are a vital part of Labor’s vision for a modern Australia.

“This additional funding delivers on the Government’s commitment to continue to assist farmers, small businesses and communities affected by the drought.

“It will allow payments to continue under demand-driven drought assistance programs, including EC interest rate subsidies, and Murray-Darling Basin Irrigation Management Grants.

“Similarly, the devastating impact of equine influenza has affected many horse breeders, trainers and the wider commercial horse industry.

“The Rudd Government has honoured its commitment to assist individuals and businesses whose primary source of income has been affected as a result of equine influenza.

“This package of funding will ensure demand-driven payments continue, including the Commercial Horse Assistance Package and the Business Assistance Grant.”

Further information on the assistance measures is available from the Drought Assistance Hotline on 13 23 16, the Murray-Darling Basin Assistance and Referral Line on 1800 050 015, the Equine Influenza Hotline on 1800 234 002 or www.outbreak.gov.au

Media contact: Ann-Marie Wilcock - 0413 872 275