A STATE opposition bill seeking to offer struggling farmers greater financial security passed the Legislative Council last week with cross bench support.
But it faces a battle in the House of Assembly, with the government refusing to back it.
The Farm Debt Mediation Bill 2015 would make mediation mandatory before a creditor could foreclose on a farming business. It is modelled on NSW and Vic legislation which has been in place since 1994 and 2011, respectively.
The government says the voluntary farming code of practice reached between the Australian Bankers Association, PIRSA, Rural Financial Counselling Service of SA and defunct SAFF in 2007 is still effective, but the opposition says mediation administered through the Office of the Small Business Commissioner has never been used for farm debt.
Opposition agriculture spokesperson David Ridgway says with many dairyfarmers and drought affected SE farmers in a precarious financial position it is important this legislation is put in place in SA soon.
“We have got to give businesses in SA every opportunity to succeed,” he said. “It is not something which needs any taxpayer funding but gives farming businesses support, so why would the government not support the same legislation as is available in other states? It just makes no sense.”
“It is hard to get all the figures but there have been about 50 mediations and foreclosures from farm debt in the last 4-5 years so it is not like it is not happening, it is just that the Small Business Commissioner is not involved.”
Minister for Small Business Martin Hamilton-Smith did not respond to Mr Ridgway’s suggestion the farming code was rarely used but in a statement said there were alternative dispute resolution services available through the Office of the SBC.
“The SBC’s office has more than adequate powers in this area and he would welcome anyone who has issues with their bank or financier to contact his office,” Mr Hamilton-Smith said.
