The Nationals Senator for New South Wales John Williams today announced a review will be sought of the decision not to grant Exceptional Circumstances relief to the Delungra region.

Senator Williams said his office has forwarded the request with supporting material to the Minister for Agriculture, Fisheries and Forestry Senator Joe Ludwig following discussions with the farming community.

He said a meeting at Delungra last Friday night heard that two of three criteria had been met, but NRAC, while acknowledging seasonal conditions were poor between May last year and April this year, did not agree there was a rare and severe downturn in farm income over a prolonged period.

Senator Williams said he found that hard to believe given that livestock had to be sold off before they were properly finished and crops that were harvested returned lower yields.

"A real problem with this process is that Australian Bureau of Agricultural and Resource Economics- Bureau of Rural Sciences financial performance data was collected from just two sample farms in the Delungra application area. This is hardly representative of the 270,000 hectares submission area.

When NRAC members visited in October, more than 20 farmers gave an insight into how badly the drought had affected their operations but that information appears not to have swayed them towards a positive decision.

Minister Ludwig has full discretion as to whether he accepts, rejects or amends NRAC recommendations. He cannot claim to have no power of independent decision-making on drought applications given that NRAC makes recommendations only. The Minister makes the decision, not an advisory group.

NRAC in all of its public meetings stresses that the Minister will make the final decision and its role is limited to assessing applications and making a recommendation only.

The former Agriculture Minister in the Coalition Government the Hon. Peter McGauran had a track record of not automatically accepting NRAC's recommendations and making his own decisions after further consultation with affected communities and NRAC. On a number of occasions this resulted in NRAC overturning its original recommendation against drought relief after the application was re-examined at the direction of Mr. McGauran.

Minister Ludwig has ample precedent within his Department to enable a re-examination of NRAC's report taking into account the social and economic hardship of the prolonged drought on Delungra. The Minister cannot wash his hands of this responsibility.

The request for a review includes supporting statements by accountants and rural suppliers, and an open letter from the Delungra farming community. It warrants fresh consideration by NRAC", Senator Williams said.

He reminded those in the application area that although EC has not been granted, the interim income support is still available until the 28^th of April next year.