Michael McCormack (Riverina, National Party, Minister for Small Business) Share this | Hansard source

I rise to speak on the Farm Household Support Amendment Bill 2017 and add to the contributions from many of my colleagues, including the member for Gippsland, who just spoke, and the members for Murray, Mallee, Calare and others. It is an important bill. It seeks to change the definition of 'assets' so that farmers who would otherwise have been ineligible for the farm household allowance support are now able to access it. That is so important for the farmers I represent. It is so important for the farmers that the member for Gippsland represents as well as those salt-of-the-earth cockies who the member for Eden-Monaro, my neighbouring colleague, represents and those who the minister at the table represents in that fine Victorian seat of Wannon.

As outlined in the explanatory memorandum, the Farm Household Support Amendment Bill 2017 will amend the Farm Household Support Act 2014 to ensure that recipients of farm household allowance are not required to serve an ordinary waiting period or liquid assets waiting period before they can begin receiving the FHA. It also clarifies the asset test treatment of certain assets necessary for the operation of the farm enterprise. As the member for Gippsland just enunciated, we want to give farmers a hand up, not a handout. And that is what farmers want, as well. Those people who continue to produce food and fibre are doing it very well. Even in times of drought, they act for and on our behalf, and keep this nation fed and clothed. Full marks to them.

The FHA program gives farmers and their partners a maximum of three years' income support to meet basic household needs while they make decisions about the future of their farm business and take action to improve their circumstances. It is tough. Farming is very tough. And I would know. My father was a farmer. His father before him was and, indeed, so was his before him. All farmed in the Junee-Marrar areas of the Riverina. I represent a large part of New South Wales. It covers not just the Riverina but also now the Central West—those great areas of Parkes, Forbes and Cowra. They are great wheatgrowing areas, and great cattle- and sheep-producing areas. I am not unfamiliar with the difficulties faced by farmers and the despair they find themselves in during difficult times. That could be, as I mentioned before, times of drought. It could be times of floods. Certainly, Forbes suffered from some dreadful floods in recent months. As well as pestilence, fires, floods—all those things really greatly affect the farmer income. I know that during those times the farmers certainly need every bit of help. As I said, farmers work the land. They care for their animals. They put food on our tables. It is vital that the government provide support and assistance to help those out who look after and provide for us. I am the first to rebuke anyone who criticises farmers for complaining about the lack of rain, the price of grain or for choosing to live where they do, often under very dire and very trying circumstances.

Farmers are not guaranteed a fixed income. They are price takers not price makers. At the moment, prices are good. I commend the seasons for that. The seasons have been kind to us in recent years. But I also absolutely pay credit to the Minister for Agriculture and Water Resources, the Deputy Prime Minister and leader of the Nationals, for the work that he has done in setting the policy parameters and policy settings to ensure that farmers have the very best opportunity. Certainly, with this legislation, as well, I pay credit to Senator Anne Ruston for her work and the chair of the coalition's backbench committee, indeed, the member for Barker. I was in the member for Barker's electorate just last week, in fact, on my small business roadshow. I took the chance to talk to many of his small business owners, including farmers. Not everybody always recognises that farmers are small businesses, but they are. I know the hard work that the member for Barker is putting into his electorate to make sure that farmers have a voice in this place, that farmers get the very best representation and that the work they do does not go unrecognised in the South Australian electorate that he represents so very fiercely and so very well.

There are many impacts by so many factors on farmers and their way of life, whether that be changes to market forces, the increase in the value of the dollar, the drops in the price of wool, grain, livestock and land. Fortunately, we have seen the good times in recent times. That is not so much for the price of wheat at the moment. It would be better if it were a lot higher. But the effects to farmers and their families is detrimental. And that is why this legislation is so important.

I have always valued the principle of giving someone a hand up rather than a handout, whether this be for the socially disadvantaged, those lacking in skills and knowledge or those struggling financially. It also applies to farmers. Farmers are not asking the government to give them a welfare handout—they are not—but a hand up so to: help them out and support them with their basic household needs while they get their affairs in order in those tough times—as I mentioned before, fires, floods and droughts, and all those sorts of things; to make the necessary business decisions that they need to in order to get back on their feet; and to, essentially, improve their long-term financial viability situation.

The farm household allowance is delivered by the Department of Human Services. I commend the minister for the work that he has done as well in this regard. It is paid fortnightly at a rate equivalent to Newstart allowance or youth allowance for those under 22 years. A healthcare card is provided to recipients. Support is also provided through a dedicated case manager—and they are so important—to help recipients assess their situation and develop a plan for the future. I know that with this particular bill the coalition has fully consulted with key stakeholders—with, as the member for Gippsland mentioned before, the National Farmers' Federation and others. I know that the chairman, Fiona Simson, is fully cognisant of what this bill entails.

These amendments to the Farm Household Support Act have been introduced to clarify the definition of farm assets used in the running of farm businesses—they are complicated and complex matters—such as water assets and shares in a farming cooperative when assessing eligibility. The amendments address the issue of such assets necessary for the operation of the farm enterprise, falling within the definition of non-farm assets, which has stricter asset limits and which can prevent some of the rightfully eligible farm businesses from receiving payments. Changing the definition of 'assets' means more farm businesses in my electorate of Riverina and the Central West will be eligible to receive assistance, with farm assets such water being treated in the same vein as other assets needed to run a farm business, including land and machinery.

Before the coalition introduced the farm household allowance in 2014 there was no support payment generally available to farmers in hardship outside of the very worthwhile, very good and very necessary exceptional circumstances drought program. It was abolished by the former Labor administration, which gave farmers hard times. It left farmers on their own.

More than 7,000 claims have been granted nationally since the FHA was introduced, giving farmers access to one-on-one case support—I mentioned how crucially important that is—activity supplements and income support. I am very pleased to stand here in support of this amendment. I am very glad it will ensure that recipients of the farm household allowance are not required, once assessed as eligible, to serve a liquid assets waiting period before they can start to receive the farm household allowance. I am hopeful, in fact I am confident, that this amendment will make things easier for farmers and their families in my electorate, whether they are in Peak Hill or Mangoplah, West Wyalong or Young. It is important that we as a government continue to stand up for the regions and those who live and work in them.

I would like to put on record some of the statistics so far. As I mentioned, there have been more than 7,000 claims. In fact, as at 24 February 7,133 farmers and partners received grants. The current number of people receiving payments at the same date is 4,794 farmers and partners. Total payments made in this period, covering 1 March 2014 to 31 January this year, including the interim farm household allowance, is $162.3 million. I would argue that that is an investment. It is an investment in our future and our farmers, and therefore it is an investment in our regions. The amount of support over three years is up to $74,474.40 for a couple and up to $41,238.60 for a single.

These measures are part of the government's commitment to continuously improve delivery of the FHA to better meet the needs of farmers who can benefit from this form of assistance. Farmers can know with confidence that this coalition government recognises their work and their importance and acknowledges what they do on behalf of this nation. The new concessional loan scheme supports farm businesses dealing with and recovering from drought. We put that in place.

The agricultural white paper is a $4 billion investment in our farmers. We are helping farm businesses to achieve better farm gate returns. We so often hear our policies mocked and knocked by those opposite in question time. When the member for New England, the Minister for Agriculture and Water Resources, when he gets up and extols the virtues and importance of increased, record prices of grain, beef, cotton and all the other commodities that he talks about so often in question time, I wish sometimes that those opposite, particularly those from the city electorates—I know the member for Eden-Monaro gets it—but particularly some of those opposite from city seats whose RM Williams boots, if indeed they ever wear them, have never seen a bit of farm dust or bulldust. They talk bit about it sometimes, but their boots have never seen it. They need to sometimes get out of the bubble that is this place and their city electorates and understand and recognise the important role our farmers play and give the agriculture minister a bit more credit when he gets to his feet and extols the virtues of the record prices that have been achieved in recent times. I appreciate that the member opposite, the member for Eden-Monaro, is nodding his head. He understands and appreciates it too.

Growing markets—the fact that we have been able to broker trade agreements with Japan, South Korea and China is so critically important. I know that the Prime Minister met the Indonesian President on the weekend. Hopefully, through the trade minister, we will be able to broker a deal with our biggest neighbour very soon. I know that the member for Moncrieff is also in very detailed talks with India at the moment. That is ongoing and that is fantastic. Growing markets enable us to be able to sell our goods and our farm products even further afield.

The member for Gippsland, the Minister for Infrastructure and Transport, spoke about the importance of the $50 billion rollout of infrastructure. That is a record amount spent by the Liberal National coalition government, and not just in city areas—also in regional electorates. It is so important to get those road networks and the inland rail built and all those things that are going to be able to get our farmers produce to markets quicker to help farmers.

We are removing technical barriers to trade. We are supporting innovative agriculture. I know the Prime Minister talks often about innovation, but there is no better area to talk about innovation than in farming. Our farmers are the most innovative in the world. They are the very best in the world at their craft. They always have been, they are at the moment and they always will be. We are providing a better tax system for farmers. I am glad that the instant asset write-off is in. As the small business minister I know how important that is. On skills and labour, I am glad we got the backpacker tax situation sorted. That was important. The WET rebate was important. We certainly helped the Australian Grape and Wine Authority promoting Australian wine overseas. They produce the finest wine in parts of the Riverina and the Murrumbidgee Irrigation Area that I once represented very proudly.

Getting back to this important bill, the Farm Household Support Amendment Bill 2017 is important. It gives help to those salt-of-the-earth people who we know, we love, we respect and we want to continue for them to do what they do for our outstanding country. We understand and acknowledge the important contribution they make, and this bill does just that.

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