ISSUES surrounding dairy concessional loan guidelines continued when Member for Mount Gambier Troy Bell questioned Agricultural Minister Leon Bignell in Parliament about the refusal to consider water licenses and stock as a securable asset.
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Later Mr Bell said the differences between states was “totally unacceptable”.
“The government talks about wanting to support dairyfarmers, but we have an example where bureaucracy is so onerous, it is putting our dairyfarmers at a disadvantage,” he said.
“I know a few people who have started doing paperwork and they won’t continue because they know they won’t meet the criteria without water and stock.”
Mr Bell is calling on Mr Bignell to make changes to allow water licenses to be allowed in SA as they are in Vic.
Mr Bignell said SA legislation was slightly different.
“While PIRSA does take into account water licences when assessing property value, water licence arrangements in SA do not provide financiers with an ability to register a formal security interest over a water license,” he said.
“Instead of trying to self-assess, any farmer interested in applying for one of these loans should speak to PIRSA in the first instance.”
This comes as Family First MLC Robert Brokenshire contacted federal Agricultural Minister Barnaby Joyce about removing the responsibility of concessional loans from PIRSA.
“I am astounded we have PIRSA once again making it difficult for farmers because they interpret the guidelines for federal loans differently to other states,” he said.
“Water licences are assets – they can be both sold and traded – and it is possible that one day their value could be greater than the land they are attached to.”
Mr Bignell said he would welcome a move to a nationally administered scheme for drought and dairy concessional loans. “In April, I wrote to Minister Joyce asking for his support to establish a working group to look at changes to the scheme’s eligibility and criteria and framework,” he said.