Fears Of Drought Effect On Australia Economy

Press, Volume CIV, Issue 30768, 4 June 1965, Page 9

Fears Of Drought Effect On Australia Economy

(N.Z.P.A.-Reuter—Copyright) SYDNEY, June 3. Agriculturalists fear that the severe drought now gripping most inland pastural areas of Australia will have lasting effects on the country ’s economy.

Both stock and crop in- I dustries are suffering un- ; der the long, dry spell as winter officially begins. New South Wales, which appears to be the State worst hit. has this year recorded the driest January-to-June period sipce 1888. Weather Bureau officials ) have not forecast any immedi-: ate relief. The other states have all! recorded low rainfalls for the I five months, but widespread: rain in the southern section [ of the continent in the last ■ five days has improved condi- i tions in parts of Victoria.; South Australia and Western Australia. Recent surveys by State and j Federal agricultural authorities indicate that the loss to j the wheat crop in New South j Wales alone could help cut ; Australia’s export income next financial year by as much as £lOO million. The drought is already expected to cut the State’s wool exports by at least £2O million. The surveys also showed that the drought could have a worse effect on overseas balances than defence spending and the American and British investment curbs. Overseas reserves are run- ■ rung down at the rate of £l7O million a year. Losses would be greatly reduced if there were satisfactory rain in New South Wales in the next month, and in Queensland in the next six weeks, the survey reports found. A spokesman for the New South Wales Department of Agriculture said today he did not think the real effect of the drought would show for another two months. “It's against the law of averages for rain to fall in the winter,” the spokesman said. There have been no reports of big stock losses from the drought. However, figures from the

Commonwealth Statistician | already show a dramatic pic-' ; ture in some key primary industries. In the dairying industry.; whole milk production! dropped 14.5 per cent from; February to March, compared > with only 4 per cent in the; same period last year. More Slaughtered In the meat industry, the’ ; drought was reflected in a! jump of 28.6 per cent in the; slaughtering of cattle and; ■calves in March compared; I with February. Sheep andi llamb slaughterings were up j 13.9 per cent. i The New South Wales State ; Government has already ; taken precautions against the ' drought. i The State’s Minister for [Agriculture, Mr W. A. Chaf[pey, has ordered immediate [surveys to establish what fod-

i der reserves exist, and their[ location. The Minister this week declared that 40 of the State’s [59 pastures protection districts were drought stricken. This, for the first time in [the history of the State, in- [ eludes all the coastal districts apart from the small i | Tweed-Lismore section. • In northern South Austra-i | lia some of the State’s largest cattle stations have I ; announced they might have 1 :to sell remaining stock if no ;rain falls within two or three; , months. The Macumba Pastoral [ ■ Company, which normally carries a capacity of 10,000 : cattle was down to 600 head [ this week. Other stations in the Ood-' ■ nadatta area of about 100.000 , ; square miles had drastically ■ reduced their numbers.