A total of 14 recommendations are included in the Rural Debt and Drought Taskforce report released in mid-May as a chairman’s report by Rob Katter.
Listed first is a request for the state government to establish a Rural and Industries Development Bank, which has long been a key plank in the Katter’s Australian Party platform.
The taskforce also wants the state government to put the argument for any drought lasting longer than two years to be declared a natural disaster, among other things.
In the wake of its release, deputy opposition leader and taskforce member Deb Frecklington said there was no consensus on the “big-ticket items” such as the reconstruction bank and a call for a royal commission to investigate financial conduct within the finance sector, but Mr Katter has played this down.
“This isn’t just a catalogue of what Rob Katter wanted – there’s a pretty broad spectrum of ideas in there, and none are any more important than the other,” he said. “It’s our job now to get the recommendations through and I’d like to think there is enough common ground.”
Ms Frecklington said there was agreement that the asset criteria for access to federal farm household payments should be eased, that access to QRAA-managed loans should be easier, and that there should be more financial literacy programs. Additional financial assistance for children's education in severely-affected drought areas is another area of agreement.
It’s understood that AgForce and QFF taskforce representatives also dissented on the recommendation that a Rural Industries and Development Bank be established.
In Ms Frecklington’s opinion, the issues raised that prompted the suggestion for a rural bank could all be met through existing mechanisms such as QRAA.
She called for a “genuine and generous response” from the Palaszczuk government, “to deliver immediate and ongoing support in the upcoming budget as farmers and regional communities face their fourth and fifth year of drought from yet another failed wet season with no cash flow and little hope.”
Mr Katter said the failure of current drought assistance was illustrated in the Australian National Audit Office's report on the federal government's concessional loan scheme.
"Out of 265 concessional loans as of December distributed last year as the centrepiece, only four went out in the Mount Isa electorate," Mr Katter said. "That was the extent of the support for the area in the past four years. It's clear we need a new approach now.”
Mr Katter said the report details cost-effective measures to address these issues, which will also be of net benefit to the taxpayer.
"This isn't just throwing money, and creating short term jobs - this is a solution that will reinvigorate the towns," he said. "All of the taskforce members saw the same desperation out there; we all saw the need for solutions that go beyond simply extending existing policies."
Taskforce recommendations:
- That the government of Queensland establishes a Rural and Industries Development Bank.
- That government make provisions for a contemporary farm debt reconstruction authority with the ability to address untenable financial arrangements.
- That the state government engages with all stakeholders to facilitate the uptake of a commercial multi-peril insurance.
- That the government initiate a royal commission to investigate financial conduct within the finance sector.
- That the state government as a matter of priority ensure that sufficient mental health workers are provided to identified struggling regions commensurate with the level of stress.
- That the state extend and expand a funding model to facilitate inter-generational transfer of farm properties including stamp duty exemptions.
- Extend productivity enhancement loans to include water infrastructure and vermin fencing with long repayment periods.
- That the state government Emergency Water Infrastructure Rebate be extended to de-silting of dams.
- That inside the Queensland Department of Agriculture and Fisheries, an independent office of rural affairs be established.
- That a commitment be made to give preferential consideration to engaging local businesses and local authorities in the construction of new and improved infrastructure for drought-affected rural areas.
- That significant direct public funding be made available to producers for continual learning opportunities to build their capacity to manage farm financial and climate risks.
- That the state government provides additional financial assistance for children's education in severely-affected drought areas until drought recovery is complete.
- That the state government make strong representations to the federal government to revise the eligibility criteria of the Farm Household Allowance, so it is more accessible to operators of primary production enterprises.
- That the state make strong argument to the federal government that any drought that lasts longer than two years be declared a natural disaster.