Chapter 1

Introduction

Referral of inquiry

1.1
On 14 November 2019, the following matters were referred to the Senate Rural and Regional Affairs and Transport References Committee (the committee) for inquiry and report by 18 June 2020:
The Federal Government’s response to the drought, and the adequacy and appropriateness of policies and measures to support farmers, regional communities and the Australian economy, with particular reference to:
(a)
loans and financial support;
(b)
water availability, infrastructure, agreement and supply measures;
(c)
various market impacts of the measures;
(d)
interaction with existing legislative and regulatory instruments across jurisdictions;
(e)
the response to the Drought Coordinator’s report;
(f)
preparedness for the current drought and the capacity of the Australian Government to prepare for future drought; and
(g)
any other related matters.
1.2
On 15 May 2020, the Senate granted an extension of time to report until
7 October 2020. On 30 September 2020, the Senate granted a further extension of time to report until 11 February 2021. Following a resolution of the committee on 3 February 2021, the reporting date for the inquiry was further extended to 21 October 2021.

Conduct of the inquiry

1.3
The committee advertised the inquiry on its website and invited submissions from a range of relevant stakeholders, including government agencies, industry, community groups and individuals. Details regarding the inquiry and associated documents are available on the committee's webpage.
1.4
The committee received 25 public submissions and one supplementary submission which are listed at Appendix 1 and are published on the committee's website.
1.5
The committee held one public hearing on 18 June 2021 in Canberra.
1.6
A list of the witnesses who provided evidence at the public hearing is available at Appendix 2.

Acknowledgments

1.7
The committee thanks those individuals and organisations who contributed to this inquiry by preparing written submissions and giving evidence at the public hearing.

References to Hansard

1.8
In this report, references to Committee Hansard are to proof transcripts. Page numbers may vary between proof and official transcripts.

Structure of the report

1.9
This report addresses the committee's terms of reference and comprises seven chapters, including this introductory chapter, with the remaining chapters set out as follows:
Chapter 2 provides a brief outline of Australian Government drought policy. It also considers the definition of drought, its impacts and the rationale for government spending in relation to drought.
Chapter 3 evaluates preparedness support and summarises the various views on the effectiveness of this approach. It also considers evidence received in relation to the Future Drought Fund and opportunities for improvement.
Chapter 4 outlines evidence received in relation to drought support for farmers and farm businesses and opportunities for improvement.
Chapter 5 examines drought support for wider communities affected by drought and opportunities for improvement.
Chapter 6 addresses evidence received in relation to other issues, such as the coordination of drought policy and measures and evaluation and review of drought support.
Chapter 7 examines evidence received in relation to water management.

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