A FEDERAL Government committee has rejected the notion that the tropical north could be developed as a major foodbowl, with large-scale high-value agriculture.
But a Council of Northern Australia will oversee the sustainable development of the regions above the Tropic of Capricorn under a plan the Federal Government has presented to Western Australia, Queensland and the Northern Territory.
Parliamentary Secretary for Western and Northern Australia Gary Gray said he had approached the three governments about establishing the council, which is recommended by the Northern Australia Land and Water Taskforce in a report to be released today.
The report, obtained by The Australian Financial Review, identifies big potential for productivity gains in the north's billion-dollar beef industry and says it should be possible to expand "mosaic-style" irrigation - involving small, widely distributed farms - from the current 20,000 hectares to up to 60,000 hectares.