NSW: Drought could claim more than 5,000 city jobs: Farmers
SYDNEY, Aug 11 AAP - The drought gripping NSW could cost almost 7,000 rural jobs andat least 5,000 in the city, farmers said today.
NSW Farmers' Association president Mal Peters said the prediction, based on AustralianBureau of Agricultural Resource Economics (ABARE) June farm production figures, was anoptimistic one and based on an assumption of immediate rainfall.
"The impact on production is going to get a lot worse, the longer we go without rainand with an 80-90 per cent chance of El Nino affecting spring rains, normal conditionsmay not return to eastern Australia for another eight months," he said in a statement.
"What is at stake is $7.6 billion a year that agriculture earns for NSW, which employs122,000 people directly."
City-based industries affected the most will be food suppliers and processors, transportand storage operators and those servicing rural areas.
As the impact of the slump in farm production trickles down, Mr Peters said, a widerrange of industries including manufacturers, retailers, service and construction industries,exporters, finance and insurance providers would be among those who suffered.
"At this stage, figures suggest almost $1 billion could be wiped from the value offarm output in NSW this year," Mr Peters said.
A further $1.3 billion would be cut from businesses depending on agriculture, he said.
Last week, the state government announced it would offer regional businesses sufferinga downturn from drought-affected farmers help to retain specialist staff until the droughtbreaks.
Payroll tax relief would be offered to country businesses which rely on the prosperityof farmers - such as machinery suppliers.
The NSW government declared 82 per cent of the state drought affected on August 8 andoffered help in providing feed, water and transport for stock.
AAP ld/cdh/br
KEYWORD: DROUGHT NSW
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