NEWLY-elected member for Parkes Jamie Chaffey is calling on Labor to bring back interest-free loans from the Regional Investment Corporation for farmers impacted by Australia’s drought and floods.
Mr Chaffey said farmers across Australia have been simultaneously devastated by recent floods as well as drought.
“In 2020, the Coalition introduced a two-year interest free period for loans up to $2 million for farmers experiencing hardship during the drought,” Mr Chaffey said.
“The zero per cent interest rate applied to new and existing drought loans and to refinance existing debt from a farmer’s commercial bank, to give farmers some breathing space, saving them cashflow and giving them time to restock and replant.
“It stopped a lot of farms from going bankrupt. It is clear recent rain and drought events are really hurting farmers, which is why I am calling on Labor to revisit this RIC loan product once again.”
Leader of The Nationals, David Littleproud, has written to Agriculture Minister Julie Collins, requesting support for the thousands of farmers dealing with floods and drought.
Mr Chaffey said current assistance doesn’t go far enough and farmers would get much-needed reprieve by having access to a $2 million loan with an initial two-year interest-free period, then three years interest-only, then five years principal and interest.
“There have been many significant events across Australia, including the floods in Western Queensland and the mid-north coast of New South Wales, Cyclone Alfred and the drought across Southern Australia,” Mr Chaffey said.
“Over the past few months there have been many flooding events in the Parkes electorate, from Wanaaring in the north-west to Moree in the north and many communities in between that have lived through the devastating effects of loss of stock, damage to infrastructure and the financial burdens of picking up the pieces to rebuild.
“The real impacts on those affected by natural disasters is not truly recognised when the Labor government sit on their hands and delay the natural disaster declarations to allow support to flow to those in need.
“The process must improve to achieve more timely action. Our farmers are feeling significant pain, and it is now time to make this loan product available for the farmers affected,” he said.
