Prime Minister John Howard raised both the controversial issues Monday after announcing that financial relief for farmers will be increased to a total of 1.6 billion dollars (1.2 billion US) since the drought began to bite in 2001.

"If ever a country in a strong financial position owed something to some of its citizens -- this nation owes to the farmers of Australia the support they need to get through this terrible drought," Howard told a news conference.

Crop analysts and traders estimate the "big dry" could halve this year's wheat crop in Australia -- the world's third largest producer -- to less than 11 million tonnes from 25 million tonnes the previous season.

Shares in the country's monopoly wheat exporter AWB fell sharply during trading on the Australian Stock Exchange Monday, dropping 7.91 percent to a record low of 2.56 dollars at one point.

Soaring temperatures and bushfires marking the apparent early onset of another hot and dry summer have dragged Howard's conservative government reluctantly into a fresh debate about the effects of global warming.

"You cannot resolve the water crisis long term in this country without resolving the global warming issue," opposition Labor Party leader Kim Beazley told reporters after Howard's aid announcement.

Australia has refused to ratify the UN's 1997 Kyoto Protocol on reducing greenhouse gas emissions and is a major exporter of fossil fuels, which produce the gases blamed for rising temperatures worldwide.

Howard has said the government will not change its policy and sign the Kyoto accord, but has begun talking up the prospect of introducing another controversial energy source to Australia -- nuclear power.

"Those who say they are in favour of doing something about global warming but turn their faces against considering nuclear power are unreal," he told Monday's news conference.

"I just think that if we're serious about having a debate about global warming, particularly as the holder of some of the largest uranium reserves in the world, we have got to be willing to consider the nuclear option."

Australia holds 40 percent of the world's known uranium reserves but has never adopted nuclear power and the government would face strong opposition to its introduction.

The prime minister's comments drew immediate criticism from green groups and opposition parties, some suggesting they represented the slippery slope towards nuclear weapons.

"North Korea is the latest example that developing nuclear power for peaceful purposes just cannot be guaranteed," Greenpeace spokesman Steve Shallhorn said in a statement.

"Prime Minister Howard is signalling to this region that Australia wanting to become a nuclear energy state is also wanting to become weapons-ready," Greens Senator Christine Milne told reporters.

Labor leader Beazley signalled that he would make Howard's commitment to nuclear power an issue in the next election, due next year.

"The line's very clear. John Howard is now very firmly committed to a nuclear future for this nation.

"We say no, that's not the modern way," he told reporters, saying the focus should be on renewable energy sources such as solar and wind power.

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