KATTER Party MPs Rob Katter (Mount Isa) and Shane Knuth (Dalrymple) say they are disappointed by attempts to address rural debt with the introduction of the Farm Business Debt Mediation Bill in parliament today. (Click for for the story.)
Central to their complaint is the failure of the Palaszczuk government to establish a rural reconstruction board, which has long been proposed by the Katter Party.
"Sure this (bill) is a positive gesture, but it falls hopelessly short of addressing the real problem of rural debt which is what our bill Rural and Regional Adjustment (Development Assistance) Amendment Bill 2016 is about," Mr Katter said.
"The mediation they have proposed is better than what we have now, but it still does not resolve the imbalance in negotiating power between banks and producers.”
Mr Katter said he was concerned that the government's bill would effectively oppose the reconstruction board proposal rather than working in conjunction with it.
"Commentators might like to celebrate high cattle prices at the moment but this means that the majority of the stressed producers out there now find it impossible to now afford restocking," Mr Katter said.
"Our bill gives producers access to cheaper loans in order to restabilise the sector.
"The public of Australia seem to give broad consensus to the concept of a financial instrument used to stimulate the sustainable energy industry, which is the Clean Energy Finance Corporation. Why not do the same for agriculture?"
Mr Katter said the state government should support a royal commission into banking.
"We need to address the behaviour of the banks in this area at both a state and federal level if we truly want to see change," Mr Katter said.
"When it comes to rural debt the job is far from done," he said.
Mr Knuth said the Government's proposal was an appetiser offered up in the place of a main course.
"This is a Clayton's bill, a sweetener and not the full outcome we are chasing," Mr Knuth said.
"We have seen firsthand what is needed in the rural and regional Queensland to manage this debt crisis, there is good intention from the government but we aren't quite there."
AgForce president Grant Maudsley said while farmers were not opposed to a mandatory approach to mediation, clear benefits over the current voluntary process needed to be demonstrated. (Click here for AgForce’s response.)
"AgForce is a signatory to the Queensland Farm Finance Strategy, which includes a voluntary negotiated debt mediation framework and emphasises the early recognition and resolution of financial issues,” Mr Maudsley said.
"Our key interest is in ensuring the best possible outcome for primary producers faced with farm debt problems, and we are not opposed to a mandatory approach to mediation when it can be shown to provide clear benefits over the current voluntary process.
"Access to affordable financing is vital for the development of agriculture in Queensland, and any mandated farm debt mediation should not detract from the capacity for borrowers and creditors to resolve issues informally.”