The state Liberal opposition has committed to establishing mandatory farm debt mediation, if elected in 2018.
It comes a week after Qld passed similar legislation to NSW and Vic that requires creditors to give farmers at least 21 days’ notice with the offer of farm debt mediation before foreclosing on their farming business.
Opposition agriculture spokesperson David Ridgway introduced a bill in the middle of last year to provide similar powers.
It received crossbench support in the Legislative Council but was voted down by the state government, which insists the Farming Dispute Industry Code, administered by the Office of the Small Business Commissioner, is sufficient.
Mr Ridgway says the state government has denied SA farmers the same protection enjoyed by their east coast counterparts.
“It is ridiculous that the Weatherill government is attempting to assert its voluntary Farming Dispute Industry Code is working effectively, when it has never been used since its inception in 2013,” he said.
“The fact the code has never been used is in itself evidence the code isn’t working and reiterates the need for a mandatory farm debt mediation model.”
Mr Ridgway said his bill was supported by all stakeholders, including the banks, farmers and industry.
But Small Business Minister Martin Hamilton-Smith said it was disappointing the opposition had not done its research because it would quickly realise that sufficient levels of power exist in SA to resolve farm debt disputes.
“The opposition is proposing to create legislation which will overlap existing powers and create further red tape,” he said.
“What is worse is that they keep pedalling the line that mediation under the present farming code is not mandatory.”
“They are simply ill-informed and would do well to ensure they correct their ongoing error.”
Mr Hamilton-Smith said he had been advised during the time of debate on the Farm Debt Mediation Bill, no farmer had lodged a dispute with the Small Business Commissioner about farm debt.
Small Business Commissioner John Chapman questioned the need for more legislation when the farming code provided extensive legal powers and had not been used in relation to farm debt.
“We would welcome the farming community to contact us if they have any debt issues,” he said.
