House of Assembly: Thursday, October 20, 2016

Contents

Dairy Concessional Loans

Mr BELL (Mount Gambier) (14:28): My question is to the Minister for Agriculture. Why doesn't PIRSA recognise water licenses as an asset for the purpose of assessing dairy concessional loans?

The Hon. L.W.K. BIGNELL (Mawson—Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Tourism, Minister for Recreation and Sport, Minister for Racing) (14:28): I thank the member for Mount Gambier for the question. As I understand it, the way the assets are assessed in South Australia is that it's taken as dryland farm that has water on it, so it is seen as a complete asset, as opposed to some other states where they take the dryland farm as one asset and the water licence for that asset.

Mr Goldsworthy interjecting:

The SPEAKER: The member for Kavel is warned for the second and final time.

The Hon. L.W.K. BIGNELL: I am just explaining what the case is here at the moment. I have written to the Minister for Water and Resources to see if we can look at changing the way things are done here. I have also written again to—

Mr Whetstone interjecting:

The SPEAKER: The member for Chaffey is called to order.

The Hon. L.W.K. BIGNELL: I've also written again to the federal Minister for Agriculture, Barnaby Joyce, because—

Mr Whetstone interjecting:

The SPEAKER: The member for Chaffey is warned.

The Hon. L.W.K. BIGNELL: —to repeat a request I made earlier in the year, that is, that the federal government administer all of these schemes around Australia so that there is consistency right across—

Members interjecting:

The Hon. L.W.K. BIGNELL: Thanks for the interjection. I just said I've written to the minister—

Ms Sanderson interjecting:

The Hon. L.W.K. BIGNELL: —to ask if we can change it. No—

The SPEAKER: The member for Adelaide is called to order.

Members interjecting:

The Hon. L.W.K. BIGNELL: Well, they are not our rules. They are not our rules. So, what we are doing is we are having a look at that. Having grown up in the South-East on a dairy farm—

Mr Whetstone interjecting:

The SPEAKER: The member for Chaffey is warned for the second and final time.

The Hon. L.W.K. BIGNELL: —I'm acutely aware of how hard our farmers work, particularly our dairy farmers, and how hard it's been since the processors that they deal with, Murray Goulburn, and Fonterra from over in New Zealand—let's remember, the state government and the federal government aren't the bad guys in this. We are the ones in there trying to help. If the—

Members interjecting:

The SPEAKER: The member for Mount Gambier is called to order.

The Hon. L.W.K. BIGNELL: We are looking at the inconsistencies and if there's a better way of doing it. What I must also say is that we were the first government in Australia when these farmers were hit so hard around Australia by Murray Goulburn and Fonterra to get out there with a package. It was a $60,000 package to help people with the mental health issues that we know come with such a huge financial shock. There was also financial counselling offered up to people as well to help them get across it. What we would like to see is more people apply. We've only had six applicants so far, and we know that there are over 250—

Members interjecting:

The Hon. L.W.K. BIGNELL: There's six who have applied: two have been successful, one has been rejected, and the others are under consideration. What we want to do is have people apply so that we can then work out, if there's a reason they are not getting it, what that reason is, but you can't count an asset twice. So, if it has already been counted—

Mr Bell: It's not counting it the first time. You're counting land value.

The Hon. L.W.K. BIGNELL: My understanding is that it is being counted because they are taking into consideration a farm that has water on that farm. That's my understanding. I've asked some more questions, and we want to get to the bottom of this because what we want to do is make sure we get these farmers who have been dealt such a cruel blow by the private sector—by those people who buy their milk and then at their whim just say, 'We're not going to pay you the amount we promised we would pay you, and we want back payment for the past 46 weeks.' They have been treated appallingly, we want to help them and we will work through the issue.