Gutwein’s chance to step up

In just under three weeks, State Treasurer Peter Gutwein will bring down the Liberals’ first Budget. Farmers will study it closely. The TFGA secured commitments from the Liberals before the election that they would address our many concerns over public policy towards agriculture. Farmers want those commitments honored sooner rather than later.

The government recently produced its report of 100 days in office, detailing which policy promises it had implemented. These included a start on the review of the so-called right-to-farm legislation, the Primary Industry Activities Protection Act 1995, and the July 1 start of a specific unit with the Department of Primary Industry to drive growth and innovation in agriculture. These are welcome down payments on the new focus on agriculture promised by the government.

The government also showed good faith with the private forestry sector by acting immediately to overturn the Tasmanian Forestry Agreement from which we were excluded and to limit the ability of protesters to damage commercial businesses.

So what do we expect to see in Mr Gutwein’s August 28 Budget as far as the rural sector is concerned?

You may recall that the Liberals’ pre-election rural policy package was entitled Cultivating Prosperity in Agriculture; prosperity accruing to all, not just the farmer. By implication, what is good for agriculture is good for the state and, heaven knows, we all need some good economic news.

We’re looking forward to seeing funding for the second tranche of the irrigation rollout. This tranche comprises:
The Scottsdale and Southern Highlands schemes, which have completed business cases and are about to go to water sales, after which these projects will await notice of federal funding; and
The Circular Head, Swan Valley and North Esk schemes, for which there are established preferred options and business cases are being prepared.
This second tranche will cost $190 million. The state has committed its share of $30 million, so we look to a significant commitment for 2014/15.

Before the election, the Liberals made a firm commitment to give Tasmanian Irrigation $500,000 “within 12 months” to provide the new government with comprehensive advice on the potential for inter-connectivity between existing schemes within the state, together with proposals for the enhancement and modernisation of existing schemes. In other words, wherever possible tying new and old schemes together.

The government has set a target of seeing the value of the agricultural sector grow tenfold to $10 billion a year by the year 2050. That is the raison d’être for the Agrivision 2050 Unit within the department.

As part of that, we are looking for funding for the $1.5 million Water for Profit program that will help farmers maximise their investment in irrigation, to get as much bang for their buck as they can.
For a number of years, the TFGA has been encouraging the establishment of a HECS-type loan system for farmers, loans for long-term programs, repayable when the returns start coming in and profits are generated. The government has pledged $250,000 to undertake a trial of such a scheme. We would like to see that in this Budget.

The government has already made a strong start on ridding industry of the yoke around its neck in the form of red and green tape, which they described as “a hand-brake on our economy”. There’s a lot more to do, and we’re keen to push this program as a priority.

We also want the immediate implementation of a Good Neighbour Charter that details the rights and responsibilities of landowners when it comes to the management and spread of fire, wildlife and weeds across property boundaries.

Where private land abuts Crown land we say this should include a government commitment to meet half the cost of materials to replace or repair fencing or other assets where these are destroyed or damaged by bushfires, floods or other activities that originate from roadside verges, national parks, state parks and forests or other state-owned landholdings. We believe that is fair play.

We have also been promised a $450,000 development program for private forests and an additional $550,000 to investigate options such as bioenergy and biofuel from forest residues. These are long-overdue commitments to address the devastation the Tasmanian Forests Agreement has caused for the private forestry sector – despite all the assurances we were given by the Labor/Green government that there would be no impacts on them.

These initiatives will provide a firm base for next stage of agriculture expansion. With renewed sense of security and an assurance of government support, farmers will have the confidence to commit to further investment – investment which will deliver more jobs and increased prosperity – and that is good news for all Tasmanians.
TFGA chief executive Jan Davis