ISSUES 62 - DROUGHT
APRIL 2003

Editorial

Impact of the Drought on Australian Production in 2002-03
Australian Bureau of Statistics
Australia is currently experiencing a severe drought, resulting in a range of social and economic impacts. The purpose of this article is to briefly describe the likely impact of the drought on the estimates published in the Australian System of National Accounts (ASNA). Both the direct and indirect effects of the drought on GDP are discussed. In addition, the article identifies those components of GDP that are likely to be most affected.

The Ongoing Battle to Overhaul Drought Policy
National Farmers' Federation
Reform of Exceptional Circumstances policy in Australia has been a focus for the National Farmers' Federation (NFF) for many years. Problems with the current scheme are well known, to both government and industry. To facilitate on-going discussion in this important area, NFF has released a discussion paper entitled 'Objectives for a sustainable national drought policy'. The paper investigates alternate approaches to drought policy based on a series of decision points.

Dry Arguments
Mick Keogh, General Manager, Policy, NSW Farmers Association
Debate about how predictable and inevitable drought is in Australia, and the appropriate policy response to it has been ongoing for most of the past half century. Almost invariably, the debate occurs at a theoretical level, with opponents and proponents of government drought assistance arguing about issues such as economic efficiency, moral hazard, structural adjustment, regional development and social welfare. A close examination of the reality rather than the theory of drought assistance over time provides a different perspective, and casts doubt on the validity of some of the theoretical arguments advanced in the debate.

Challenging Our Water Myths
Dr John Williams, CSIRO Land and Water
The Australian psyche is dominated by water, but three great myths about it still influence our thinking, writes John Williams.

Just Another Drought?
Australian Conservation Foundation
Australia's current drought is the worst on record. The combination of no rain, hot temperatures and high evaporation is proving very costly in the bush. So far it has cost an estimated $8.1 billion in lost farm production, and taxpayer-funded drought assistance to farmers is likely to top $500 million. Yet, scientists are warning that rural Australia could be experiencing more than 'just another drought'.

Can Cloud Seeding Bring Relief?
Dr Brian Ryan, CSIRO Atmospheric Research
With rainfall being well below average over vast areas of the continent, farmers and water managers are asking what can science do about the problem.

Living With Drought in Melbourne
Melbourne Water
Drought is a natural part of our highly variable climate - and Australian life. Parched landscapes, dying livestock, empty farm dams and wilting gardens are images that we know all too well. It is not a case of whether drought will occur, but when. The lessons of the past show clearly that it cannot be eliminated. As former Premier of Victoria, Sir Rupert Hamer, said in 1983: 'It is impossible to make Melbourne drought-proof ... in this sort of continent we will get (water) shortages periodically.'

Challenging Perceptions of Drought in Australia
Tim Lester and Julie Olsen, Land & Water Australia
The story of drought portrayed in the media is an intensely human tale of struggle and loss. Until recently there has been little questioning of an economic system and traditional thinking that are supporting practices now shown as unsustainable in an Australian context. Gradually the debate is turning from how we can prevent the impact of drought in Australia, to what do we need to do to live with it.

Living With Drought
Bureau of Meterology
Australia is the driest inhabited continent even though some areas have annual rainfall of over 1200 millimetres. Our climate is highly variable - across the continent generally, as well as from year-to-year. We must learn to live with drought!

Global Warming Contributes to Australia's Worst Drought
David Karoly, James Risbey, Anna Reynolds and Karl Braganza write that human-induced global warming is a key reason why the present Australian drought has been so severe.