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Aus firm calls out ‘unfair’ assistance scheme
An Australian law firm has spoken out about what’s being dubbed a “flawed and unfair” assistance system to farmers and agribusinesses struggling financially during the drought.
Emma Musgrave
Creevey Russell Lawyers said federal government assistance to farmers and agribusinesses during the drought is “seriously flawed and unfair" and should be reviewed by the new Drought Finance Taskforce, being chaired by federal Treasurer Josh Frydenberg.
“These farmers maintain this is inequitable because they are the ones who have shown initiative and a willingness to try to work their way out of the drought,” said Mr Bell.
“They are the ones suffering the stress of working two jobs to keep things going. That seems a pretty compelling argument for the assistance model to be adjusted to deal with this unfairness.
“We expect farmers are very relieved that Fiona Simson, president of the National Farmers Federation, has been appointed to the Taskforce as she has an acute awareness of the plight of drought-stricken farmers.”
Mr Bell acknowledged that “while the current government funding may open up some options to farmers to negotiate in relation to distressed loans and provide extra cash flow”, there are other flaws with the scheme “such as the assistance model funding unsustainable rural businesses”.
“A friend, who is both a recently retired chartered accountant with many rural clients and the owner and manager of a significant cattle enterprise, says many rural enterprises are simply not viable on a long-term basis because of where they are situated in terms of receiving sufficient regular rain,” he said.
“While these farmers deserve sympathy, assistance to these enterprises is throwing good money after bad. It would be reasonable to expect that the government will work this out and that funding for unsustainable rural enterprises is certainly not likely to be ongoing. Realistically, the better strategy for these farmers maybe to sell out in the most effective and profitable way.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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