The NSW Government will spend an additional $6 million in drought funding for the continuation of essential support services for affected farmers, Minister for Primary Industries Ian Macdonald today.

Minister Macdonald said the drought is continuing to cause significant financial hardship for rural communities, so it is vital support services remain in place.

"Unfortunately the latest drought figures for May show 48.4%of the State is still in drought, with a further 23.6% classified as marginal," he said.

"That’s why we areis spending an additional $6 million to ensure a number of important assistance measures continue, including transport subsidies.

"This funding also ensures ongoing assistance for small businesses affected by drought through the Business Drought Assistance - Payroll Tax Relief Program for the 2007/08 financial year, payable in 2008/09.

"This further assistance is in addition to more than $390 million which has already been committed to drought assistance and the Government will continue to stand by our State’s farmers for as long as it takes."

Minister Macdonald said with only a 45-50% chance of average rainfall being received in current drought affected areas, it was clear the transport subsidy scheme would need to remain in place in coming months.

"Today’s announcement ensures the continuation of this popular scheme until at least August, which will assist in the essential transport of livestock to and from agistment, to sale or slaughter, and the transportation of fodder and water supplies," he said.

"Transport subsidies have been in place since mid 2002, and the NSW Government has spent $128 million to date on this important assistance program."

Minister Macdonald said funding would continue for the drought support worker and farm family gathering program until at least the year’s end, as previously announced.

Media contact: Lyndall Derrig 0400 462 447 or Trudy Glasgow 0427 217 354