[downunder] worst drought ever

A farmer ploughing through a dust-cloud in the Wimmera region

Even if rain comes to Australia's parched rural regions, it will be too late for crops in Victoria and Western Australia, according to Federal Treasurer, Peter Costello. In the worst drought since records began, hundreds of farmers will be left dependent on government assistance and Mr Costello flagged new measures to make it easier for farmers to claim drought relief, in a season when many are likely to have no farm income at all. He also signalled a turning point in Australia's economic cycle, saying the record commodity prices that have powered the economy since 2003 have now peaked, and will fall in the next two years. Mr Costello said this would end the huge revenue windfalls for the Government, but give welcome relief to households, retailers and the economy, with petrol cheaper and less pressure on inflation — and hence, implicitly, on interest rates. But the Treasurer saw no relief ahead from the drought. He warned that it would be "very severe, worse than people have anticipated". Australia has always faced drought and bushfires as its main natural hazards but that doesn’t make it any easier.