Scott Morrison to deliver $1 billion loan relief for drought-hit farmers
Broadcaster Alan Jones has unloaded on a federal government plan help drought-stricken farmers by delivering $1 billion in interest-free loans, accusing Prime Minister Scott Morrison of failing to understand the situation.
NSW
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Alan Jones has lashed out at Prime Minister Scott Morrison’s plan to offer $1 billion in interest-free loans to drought-stricken farmers and businesses, claiming it is simply a moneygrab by a federal government that will begin charging interest a few years down the track.
The 2GB broadcaster slammed the plan which Mr Morrison said last night would provide cut-price cash to buy feed and fix fences while as much as $267 million in new council grants would support jobs in areas devastated by the big dry.
“These people have got no idea. The drought has broken them and after the first few years they’ll be up for interest,” Mr Jones said this morning.
“I don’t know who the PM is listening to. He says he’s been on the ground and interest-free loans will make it cheaper.
“This shows a complete lack of understanding of farmer’s plight... we’re losing track where farmers have to pay back interest.
“This is government making money out of farmers’ grief... the PM is bloody pigheaded.”
Mr Morrison launched the relief plan last night, saying more needed to be done as the drought continued to bite regional communities.
“We have been back on the ground listening to farmers and their communities, and this package is a direct response to their feedback,” Mr Morrison said.
At the moment farmers can borrow up to $2 million from the government Regional Investment Corporation (RIC) with the first half of the 10-year loans interest-only before reverting to principal and interest.
The current rate is 3.11 per cent. Now the loans will be interest-free for the first two years, interest-only for the next three then principal and interest.
The $200 million of drought loans the RIC has already written will be able to refinanced on the improved terms.
“Interest-free loans will make it cheaper for farmers to buy fodder, transport stock, build water infrastructure, agist cattle, mend fences or refinance existing debt,” Mr Morrison said.
“Farmers will not have to pay a cent for the next two years, and even after that, interest only on a discounted rate.”
The RIC will also set up a new product for small businesses. Those with less than 20 employees that it judges to be affected by the drought will be able to borrow up to $500,000 on the same terms as farmers.
“Rural communities can’t function without these small businesses, that’s why we are stepping in to provide this extra support,” Mr Morrison said.
The government expects $1 billion will be lent over four years to farmers and small businesses under the new terms.
The 122 councils across Australia that have already received $1 million drought grants will get another $1 million each. Fifty-five of these are in NSW.
Nationally, six that have yet to receive any grant will also get $1 million; several are in NSW.
And as much as $139 million of additional funding for ready-to-roll road projects will be made available.
Meanwhile, $200 million will be redirected from the Building Better Regions fund to provide up to $10 million per project.
None of the measures require parliamentary approval and should be immediately available.
“We will continue to keep providing more support as the drought rolls on,” Mr Morrison said. “Our drought plan is not set and forget.”