The Callinan inquiry report was recently made public, confirming what we here in NSW had long suspected - it was human error that caused the horse flu outbreak.

In NSW alone more than 41,000 horses were believed to be infected and at the height of the outbreak more than 6000 properties were under strict quarantine.

The State Government - led by NSW Department of Primary Industries - mustered a workforce of more than 2000 to wage war on horse flu.

The good news is we have been triumphant - the last positive case of horse flu in NSW was recorded on December 21 last year.

However, we can’t ignore the poor management efforts of those Federal quarantine agencies that resulted in the $342 million cost of controlling and conquering EI.

The NSW Government will work closely with the Commonwealth to ensure the protection of our valuable livestock industries in NSW.

One immediate example is the $43 million we will be spending over the next five years to upgrade the State’s frontline laboratory facility at Elizabeth Macarthur Agricultural Institute.

Drought picture worse

The latest figures unfortunately show more than 60 per cent of the State is now affected by drought, with much of the cropping belt on a knife edge, waiting for desperately needed rain.

The latest drought figures show 62.7pc of the State in drought (up from 48.4pc), and 23.7pc experiencing marginal conditions (up from 23.6pc).

Just 13.6pc of the State is classified as satisfactory (down from 28pc).

The north west of the State from Broken Hill to Tibooburra received no rain during May, while the rest of western half of the State and the southern part of the received very little.

Seasonal conditions are continuing to deteriorate, and cropping areas are in urgent need of good rain to consolidate sown crops and enable remaining seed to be planted.

As we all know, these poor seasonal conditions also impact on the livestock industries, with reduced grazing production, especially in central and southern areas.

All in all, the current situation paints a pretty grim picture, and we can only hope June produces some predicted good winter rainfall to help crops and pasture growth.