Ms LEE - 2014-02-18
While the Northern Territory continues to build its agribusiness economy, some pastoral and agricultural properties have been suffering due to drought and the former federal government’s live export ban. Can the minister please update the House on the work the Department of Primary Industry and Fisheries, and the Commonwealth are doing for landowners with unmanageable levels of debt?
ANSWER
Madam Speaker, I thank the member for Arnhem for her question, again demonstrating her interest in the primary industry sector and how it will contribute to the growth of northern Australia. It is very important.
The Commonwealth government announced a new program of $420m, called the Farm Finance package, for primary producers across Australia struggling to service their existing debt levels. The Territory’s share of the program is worth a total of $15m per year for the next two years, a total of $30m. The Territory also has access to a reserve fund of some $40m. Loans are at a concessional interest rate and will be interest only for the period of five years, after which they must be repaid. Applications are open for individual concessional loans to a maximum of $1m, and I am very pleased to announce those loans and applications are available as of today.
We have worked through an exhaustive process to get a robust system in place, which has been somewhat difficult to achieve given the trilateral arrangements we have had to put together between the Northern Territory, the Commonwealth and the Queensland Rural Adjustment Authority. It has made this package unique.
The member for Arnhem mentioned the reasons this package came into being. We recognise and acknowledge the difficulty some of our pastoralists are going through with dry conditions, particularly in the southern half of the Northern Territory. I hope they have had a little rain there to bring some relief.
Largely, this was about repairing some of the damage done by Labor’s live export ban in 2011. As I foreshadowed then, the implications of the live cattle suspension were significant and long lasting. We are still seeing pastoral properties suffering the effects. Part of the problem is levels of debt and whether they are sustainable. This package goes some way towards dealing with some of the debt issues our struggling pastoralists have.
As I said, these are concessional loans. This not a hand out; that is not what conservative governments do. It is support for pastoralists in difficult times. It is a concessional loan scheme which will allow pastoralists to reduce the amount of repayments they have on any given monthly or fortnightly basis so they can get on top of their current debt level.
I thank the member for Arnhem again for her question. It is very important and I am delighted we have the Farm Finance package up and running in the Northern Territory to support our pastoral industry.
ANSWER
Madam Speaker, I thank the member for Arnhem for her question, again demonstrating her interest in the primary industry sector and how it will contribute to the growth of northern Australia. It is very important.
The Commonwealth government announced a new program of $420m, called the Farm Finance package, for primary producers across Australia struggling to service their existing debt levels. The Territory’s share of the program is worth a total of $15m per year for the next two years, a total of $30m. The Territory also has access to a reserve fund of some $40m. Loans are at a concessional interest rate and will be interest only for the period of five years, after which they must be repaid. Applications are open for individual concessional loans to a maximum of $1m, and I am very pleased to announce those loans and applications are available as of today.
We have worked through an exhaustive process to get a robust system in place, which has been somewhat difficult to achieve given the trilateral arrangements we have had to put together between the Northern Territory, the Commonwealth and the Queensland Rural Adjustment Authority. It has made this package unique.
The member for Arnhem mentioned the reasons this package came into being. We recognise and acknowledge the difficulty some of our pastoralists are going through with dry conditions, particularly in the southern half of the Northern Territory. I hope they have had a little rain there to bring some relief.
Largely, this was about repairing some of the damage done by Labor’s live export ban in 2011. As I foreshadowed then, the implications of the live cattle suspension were significant and long lasting. We are still seeing pastoral properties suffering the effects. Part of the problem is levels of debt and whether they are sustainable. This package goes some way towards dealing with some of the debt issues our struggling pastoralists have.
As I said, these are concessional loans. This not a hand out; that is not what conservative governments do. It is support for pastoralists in difficult times. It is a concessional loan scheme which will allow pastoralists to reduce the amount of repayments they have on any given monthly or fortnightly basis so they can get on top of their current debt level.
I thank the member for Arnhem again for her question. It is very important and I am delighted we have the Farm Finance package up and running in the Northern Territory to support our pastoral industry.
Last updated: 09 Aug 2016