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Less than a quarter of north Qld flood recovery funding was weak. Was offering debt the area?

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Less than a quarter of north Qld flood recovery funding was weak. Was offering debt the area?

The Federal Authorities is attempting work out why less than a quarter of the $300 million it released in the wake of the north Queensland floods was taken up by farmers, two years after the disaster.

Key aspects:

  • The Federal Authorities is attempting to work out why less than a quarter of the money released after the 2019 floods has been taken by graziers
  • Professor Bruce Chapman says governments must rethink offering farmers more debt
  • The Cloncurry Shire mayor says tiny rain after the floods is the main reason why producers are now now not taking up the grants

Finest $66 million has been claimed by north Queensland farmers.

Early Newspaper

In the months after the floods, $400,000 grants had been offered to primary producers, who necessary to match the funding with their gain money.

Governments offering farmers debt in the face of disaster has reach beneath fire sooner than with loans offered to assist producers in drought receiving a combined response.

That challenge has reared its head again, with Shane Stone from the National Drought and North Queensland Flood Response and Recovery Agency admitting earlier this week that of us had points matching the grant.

Professor Bruce Chapman from the Australian National University, who has been studying the Authorities’s response to disasters for a number of years, said he was now now not stunned to hear the dollar-for-dollar grants had been unpopular.

“They’ve bought to discover that money one way or the other and the way you would normally discover that money is via a bank loan,” Professor Chapman said.

A lone sheep stands in a dry paddock.

Professor Bruce Chapman says governments must rethink the way it offers loans to farmers for disasters.(ABC Southern Queensland: Nathan Morris)

With many farmers in drought feeling the same way about the prospect of borrowing money, Professor Chapman has proposed governments offer primary producers loans they can pay back when income recovers — similar to HECS loans for varsity college students.

“We’d like something totally different, we need a bridging arrangement for small trade or for farmers to be able to outlive the poor instances,” he said.

“Or now now not it is now now not to replace the banks, the banks may well assist finance it. But as a complement when instances are really severe.”

Mayor says latest gadget will work

With more than 500,000 head of cattle killed by the floods, the dollar-for-dollar grants have played an important role for some graziers who lost almost all the pieces.

Two men stand next to teach other talking, one is the Prime Minister.

Cr Campbell says graziers are now now not taking up grants because the area has gone back into drought.(ABC Rural: Eric Barker)

Cloncurry Shire mayor and grazier Greg Campbell has taken some of the Authorities offering.

But he said with tiny rain after the floods many properties had gone back into drought and had been light flippantly stocked.

“Specifically with our family, we haven’t accessed as a lot as what is on offer because we haven’t bought the feed to sustain any more cattle at the second.”

Cr Campbell said with sustained low interest rates most graziers in the area would now now not have a area borrowing money to access govt grants if the season turns around.

“Especially on the back of how stable cattle costs are at the second, and money’s relatively cheap to borrow,” he said.

“The agricultural sector carries a fair bit of debt, nonetheless it may well be a fairly apt trade pass to be able to access these grants.”

Push for better infrastructure

A sign on the Flinders Highway pointing to Cloncurry and Julia Creek

The Cloncurry Shire mayor says he would win to peer any money left over redirected to other tasks in the area.(ABC Rural: Caitlyn Gribbin)

Aside from the push to assist graziers rebuild their herds after the floods, the area has been collectively pushing for upgrades to infrastructure admire roads, rail, and telecommunications.

The National Drought and North Queensland Flood Response and Recovery Agency has answered with a $58 million fund instantly targeted at infrastructure spending.

Cr Campbell said he would win to peer any money left over from the dollar-for-dollar plan redirected to other tasks in the area.

“We now have confirmed, via the flood, the handiest agency to gain issues happening on the ground is via councils,” he said.

A spokeswoman for the National Drought and North Queensland Flood Response and Recovery Agency said it was sticking with the dollar-for-dollar grants at this level.

“We’re assured that as stipulations make stronger of us will discover themselves in a better place to take advantage of the grants,” the spokeswoman said.

“We now have also prolonged the closing date to purchase a lot-necessary breathing space and allow of us to make the handiest that you can contemplate of selections for their trade and their families.”

The spokeswoman said any reallocation of the funding necessary to be a decision for the Authorities.

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Less than a quarter of north Qld flood recovery funding was weak. Was offering debt the area?