Dairy Concessional Loans

Mr BELL (Mount Gambier) (14:41): My question is to the Minister for Agriculture. Given that 54 Victorian farmers have accessed $28 million worth of concessional loans, yet only two have been approved in South Australia, can the minister explain why there are so few applications coming through?

The SPEAKER: Splendidly asked. Minister.

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) (14:42): There is a massive difference in scale between Victoria and South Australia.

Mr Bell: Not that big—$28 million.

The Hon. L.W.K. BIGNELL: 3,000 dairy farmers in Victoria and 250 in South Australia, so there is a very big difference in the number of dairy farmers on both sides of the border. There is also a much bigger exposure to Murray Goulburn and Fonterra in Victoria than there is in South Australia.

Mr Bell: They can access water as an asset and it makes the loan ratios better, that's why.

The SPEAKER: I warn the member for Mount Gambier. He has asked his question; he will listen in silence.

The Hon. L.W.K. BIGNELL: There are more options for farmers in South Australia about where they sell their milk. We have—

Mr Bell: A government that wants to work with them.

The SPEAKER: The member for Mount Gambier is warned for the second and final time. He has been given four questions; he should listen to the answer.

The Hon. L.W.K. BIGNELL: We have processors, like Golden North in the member for Frome's electorate up at Laura, we have B.-d. Farm down near Strathalbyn and we have the Fleurieu Milk—

Mr BELL: Point of order, sir: I ask the minister to come back to the substance of the question. I have said there are 54 Victorians and only two here. I am not talking about the rest.

The SPEAKER: Yes, I ask the minister to return to the substance of the question.

The Hon. L.W.K. BIGNELL: I am actually explaining the difference. I am talking about the difference between South Australia and Victoria, and it's all part of it. If we haven't received as many applications as the Victorians have, there are a number of reasons for that, which is what I am going through: we have 250 dairy farmers compared with 3,000 dairy farmers and we have more processors than they do in Victoria. There are a number of different reasons why there would be a difference in the number of people putting their hand up to get some money, and we are working on ways to see if our system here in South Australia can be improved. What we will continue to do is—

Mr Bell: We've got farmers going broke, Leon, and this is no—

The Hon. L.W.K. BIGNELL: We are working with them. We were the first government in Australia to be out there helping dairy farmers. We have been out there, we have appointed someone in the South-East who is the go-to person for these grants. We want to hear directly from the people. We will sit there and we will work through the grant application process. We will work with them on what needs to be done so that we can get the money to them.

We are trying to do that, but I want to urge all dairy farmers, if they need some assistance, to come to us, and we will look at their individual circumstances and see if we can help them. By the same token, as I mentioned before, I congratulate those who have worked out an agreement with their banks to help them out, but for those who can't do that, or haven't been able to do that, we are happy to sit down with them and work it through. If it turns out that the reason they can't get it has something to do with their water licence, then we will look at that but, as I said—

Mr Bell interjecting:

The Hon. L.W.K. BIGNELL: I have asked the question whether we can change it, if that is possible, and a number of other things are under consideration to see if we can have a system that delivers the money to the farmers because that is what we want. We want a sustainable, healthy dairy farm. But just remember, this is not the federal government's fault or the state government's fault, it is the private sector.