Treasurer convenes rural debt banking roundtable

Treasurer Curtis Pitt today convened a State Government rural debt banking roundtable to tackle rural debt in Queensland.

Senior executives from Australia’s major banks were represented on the roundtable along with the Australian Bankers' Association, the Queensland Rural Adjustment Authority (QRAA) and Queensland Treasury Corporation.

Mr Pitt said he was encouraged by the commitment from government, banks and the agricultural sector to work together on policy solutions.

“It was clear that all lenders, big and small, recognised that there is a problem with rural debt in Queensland,” he said.

“But we also discussed the opportunities which exist to grow Queensland agriculture and agricultural exports – particularly into Asia.

“The banks indicated a willingness to share data to get a clearer picture on the size, scope and characteristics of debt in regional Queensland.

“This data would be incorporated into a rural debt survey to establish the extent of drought-related rural debt in Queensland.

“The last rural debt survey was conducted in 2011 and conditions have changed since then, and the data needs to be updated.”

Mr Pitt said farming businesses were different to other commercial enterprises and had different financing requirements.

“I’ll be writing to Australian Prudential Regulatory Authority (APRA) about the unique seasonal and intergenerational nature of farming, to argue the case for the unique requirements of farmers to be taken into account,” he said.

“As a government, we acknowledge these are tough times exacerbated by the drought, and that new policy responses must be considered.”

In addition to the rural banking roundtable, the State Government has also established a Rural Debt and Drought Taskforce.

The taskforce is chaired by the Member for Mount Isa Robbie Katter, with cross-party representation including the Member for Ipswich West Jim Madden.

Minister for Agriculture Bill Byrne said rural debt was a serious issue in regional Queensland which required urgent attention.

“Farmers throughout Queensland are facing serious challenges because of the debt load they’re carrying,” he said.

“We’ll work with industry, banks and other stakeholders to ensure Queensland farmers can make it through these tough times.”

Mr Pitt said the Palaszczuk Government announced a $52.1 million drought package earlier this year as part of its first State Budget.

“Together with $154 million in financial assistance from the QRAA in the last financial year, initiatives such as this provide some relief to farming families,” he said.

Media contact: Martin Philip 0427 919 548