The luke-warm response to the government’s farm support package was not unexpected, Tasmanian Liberal Senator Richard Colbeck said.
Speaking from the ABARES regional outlook conference in Hobart today, Senator Colbeck said the belated recognition of difficulties facing agriculture was welcome.
“But it is hardly compensation for the neglect of the sector and the significant additional costs imposed on industry over the last five and a half years,” Senator Colbeck said.
“The continued uncertainty regarding the framework to be utilised for the allocation of the low-interest loans is an indication of the level of planning that has gone into the package.
“And when one of the real concerns is that debt levels in the farm sector are too high, it does seem somewhat counterintuitive to be offering even more debt. The possibility that it may tempt some to overcommit must be watched carefully.
“The stipulation that farms must be viable also raises a potential risk. What is the impact of a farm being refused assistance on these grounds? What message does that send about a farm business to the commercial banking sector?”
“Importantly, what are the viability criteria?”
The additional 16 rural financial councillors were obviously welcome but recent conversations with Rural Financial Counselling Service indicated a significant level of uncertainty over future funding levels for the program, Senator Colbeck said.
“The change to the farm income threshold for farm management deposits (FMDs) is one very welcome element of the package, it does have the capacity to make a difference,” he said.
“The nationally consistent methodology for assessing farm debt remediation is also welcome.
“The farm sector has suffered under Labor with additional costs imposed, failures in gaining access to important markets and poor decision making and management of the economy, which has put farm businesses under severe pressure.”
SENATOR THE HON RICHARD COLBECK Senator for Tasmania Shadow Parliamentary Secretary for Fisheries and Forestry Shadow Parliamentary Secretary for Innovation, Industry and Science
