Spot on geeves. I was going to take a pic just now but i have come inside for dinner and forgot. Will do tomorrow. Mine is a LOT worse than that There was a piece of foam rubber stuff between that member and the chassis below which clearly stops any water draining out - presumabley its meant to help stop dirt getting into the engine bay or something but I think it has led to a lot of that rust. Will take a pic of the other rusty bit near a front body mount too.
What would you think about cutting the entire middle section of that cross member out and just welding a new straight cross member in?