House debates

Wednesday, 1 March 2017

Bills

Farm Household Support Amendment Bill 2017; Second Reading

1:10 pm

Photo of John McVeighJohn McVeigh (Groom, Liberal Party) Share this | Hansard source

I rise to speak in support of the Farm Household Support Amendment Bill 2017. Before I speak on that, though, I just wanted to remind the House of the background to the act that these amendments apply to. Before the coalition introduced the farm household allowance through the Farm Household Support Act 2014, the House should remember that there was no payment generally available to farmers in hardship outside of what was known as 'exceptional circumstances'. Exceptional circumstances declarations were abolished by the former Labor government such that farmers throughout Australia had no trigger upon which to seek support whilst their families and their businesses were in temporary hardship.

Successive reviews of policy over the years recommended that the government establish a hardship payment that is available at all times, not just during drought. These include the 2009 Productivity Commission report on government drought support, the 2011 review of the Western Australia drought pilot and the 2013 intergovernmental agreement on national drought program reform, a process in which I participated, formerly having agriculture responsibilities in Queensland. In that role at the time, I knew full well—when our state was dealing with unprecedented drought on top of a significant bushfire season in North Queensland across some of the extensive pastoral holdings, leading up into the cape for example, and of course the continued backlash from the former Labor government's decision about the live cattle export trade to Indonesia—that our state LNP government at the time stood up to support farmers, with an unprecedented package for those needing assistance, given all of those circumstances. I remember quite well when the bill that is the basis of these amendments was debated in this House in 2014. On behalf of Queensland farmers at the time and graziers, and those even in my own region of the Darling Downs, I thanked the coalition government then and I do so again now as a member of that coalition government.

The farm household allowance is not just about drought. It recognises farm families can experience difficulty in different ways and at different times. The allowance is delivered by the Department of Human Services and is paid fortnightly at a rate equivalent to Newstart allowance or youth allowance for those under 22 years of age. A healthcare card is provided to recipients and support is also provided through a dedicated case manager to help recipients assess their situation and, most importantly, to develop a plan for the future. Eligible farmers and their partners are able to access up to three years of payment. That is designed to give farm families time to get back on their feet and have the opportunity to take steps to improve their circumstances—as I said, based on a plan for the future.

Here we are now at a stage where, based on ongoing consultation regarding farm household allowance, the government has continued to listen to the concerns of farmers and is, therefore, introducing these amendments. They are about, as we have heard, improving the delivery of the payments to make it easier for those who are experiencing hardship, whilst appropriately maintaining a robust application and assessment process.

The amendments will more precisely define the farm assets used in the running of these farm businesses that are under pressure—such as water assets and shares in farming cooperatives—when assessing eligibility. When determining the eligibility, they will be properly treated in the same light as land, equipment and machinery that are simply needed to run a farm business. As we have heard, they remove the requirement to serve an ordinary liquid assets waiting period before people can receive payment. Therefore, those in need will now be able to receive payments at the earliest possible opportunity.

I certainly am pleased that thus far the Farm Household Support Scheme has provided support to a significant number of farmers, farm families and their partners right across the country. In my own state of Queensland, very recent statistics indicate that 2,014 farming operations have been granted the assistance of a farm household allowance under the Farm Household Support Scheme during the life of the scheme. That is about 30 per cent of those granted across the nation. I am advised that, at present, we have 1,293 farming families in Queensland receiving assistance. That is about 25 per cent of the national figure. That is particularly important. That ongoing assistance right across the country is very much appreciated, certainly in my region.

I noted earlier that the member for Hunter suggested in his speech that farmers do not want assistance or loans. We certainly know that farmers would prefer not to have to seek assistance or be offered assistance from the government, but the circumstances that prevail in some of our farming operations and businesses across the nation—and they are the lifeblood of our nation, the lifeblood of our international trade, as current statistics prove—are such that assistance does need to be provided to support them, to support regional communities and to support our economy. I remind the member for Hunter that we have delivered $622 million in approved loans to 1,161 farmers. Prior to our coming to office, only eight loans had been granted under Labor.

On the other side of the coin, in terms of future development for agriculture, he also suggested, especially in his reference to horticulture, that we have no plans to open trade. I think I can fairly say that no more ridiculous statement has been made in this House, because the simple facts are that we have delivered three key free trade agreements. We have ensured that new import protocols enabling nectarines to be imported into China from Australia are in place. New protocols for table grapes in 2014 resulted in a 244 per cent increase in exports to Japan in the 2015 year, and new protocols in September 2016 for melons and pumpkins imported into Japan benefit 380 rockmelon, watermelon and honeydew melon growers and about 800 pumpkin growers. We are seeing similar protocols being achieved for horticulture, particularly citrus, imported into Korea.

The comments from the member for Hunter are typical of those opposite who do not understand what it is like to be under pressure in regional communities throughout our country. They do not understand, as this side of the House does, what it is like to stand with farmers who suffer from bushfires—as I did in North Queensland a few years ago—and to stand with them on their drought-affected properties and their flooded properties. These are farmers who say, 'We don't want to put our hand out. We just want to remain productive. But please keep us going such that we can support our families, our towns, our communities, our states and the national economy.'

When the coalition government came to power in 2013 there was simply an empty cupboard on drought policy. Labor had abolished the longstanding exceptional circumstances drought support policy. Not only that, it had effectively cut the department of agriculture's budget in half. They abolished Land & Water Australia, for example, and threatened the longstanding policy of matching farmers' research and development levies to support our research and development corporations. People should remember that it was Labor who asked the Productivity Commission to review the rural research and development system in our country. Clearly, they wanted to access those taxpayer funds contributed by producers so they could go towards their other priorities, which certainly would not have considered farmers or regional Australia.

By contrast, the coalition government has confirmed that farmers' research and development funds will be prioritised. The funds of those levy payers will be prioritised towards projects with the intention of boosting farmgate returns. We have strengthened the R&D system, and here I refer, amongst other things, to the $190 million Rural Research and Development for Profit initiative.

It is particularly important to reflect on the fact that during this debate many speakers have mentioned that farmers are not looking for assistance. They do not want to have to put their hand out, but because we, as a community and as a nation, depend on them and depend on their productivity going forward, we recognise—and they ultimately recognise—that we need to keep those businesses going, hence my reference to R&D support for agriculture from the coalition government. That is the important other side of the coin, if you like. Sure, we need to step up and provide support when support is necessary in times of drought, flood and other circumstances that from time to time provide great crisis conditions throughout regional Australia in this great country. But, at the same time, we must continue to drive productivity.

I have stood with farmers, I have stood with graziers—and I can refer to many examples in Central Queensland—who, with tears in their eyes, with their teenage children home from school because they cannot afford the expense of keeping them at school in their senior years because they cannot afford to employ anyone else to assist them on the farm, have said to me: 'John, we don't want to ask but we do need some help. Help us through and, most particularly, please continue to focus on productivity in agriculture throughout Australia, with research and development, be it in our cotton industry, our horticulture industry or our grains and beef industries, particularly in the north, where this government is so focused on the development of Northern Australia, such that we can continue to support the economy of Australia as it drives trade and as it drives relationships with those countries who are demanding our product. Please continue those trade relationships as well.' That is what they have said to me. That is what farmers, graziers, horticultural producers and dairy farmers all across this country who encounter difficult circumstances from time to time are saying to our government, and that is why our government is standing up and continuing to deliver for them.

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