“It’s a pretty simple question”: Today host Deb Knight grills Deputy PM over drought plan
Deputy Prime Minister Michael McCormack was grilled by Today host Deb Knight who demanded that he answer a “pretty simple question” about the government’s drought relief package.
According to the $1 billion plan, the Regional Investment Corporation (RIC) farm drought loans of up to $500,000 will now be interest-free for two years, interest-only in years three to five and principal-and-interest for years six to 10.
This differs from the current conditions as they are interest-only for the first five years and principal and interest for the remainder of the 10-year loan term.
The loans will be available to small businesses who are dependent on agriculture and under similar conditions to the new drought loans. The loans cover businesses such as harvesting and shearing contractors, livestock transport providers, stock and station agents as well as agricultural equipment and repair providers that employ 19 workers or less.
“Should they wish to take a loan out, interest free over two years, they can do that up to half a million dollars,” the Nationals leader said on Today.
“Many drought-affected regional businesses, and that’s what I’ve been hearing, it’s not farmers, it’s about ag-related businesses, they can take out that loan under the RIC. They can invest in themselves in their futures, should they so wish and they don’t have to pay any interest for two years.”
“Whether it’s councils, whether it’s regional businesses or whether it’s farmers, we’ve provided the assistance that they’ve asked for.” @M_McCormackMP on the billion-dollar funding package being given to drought-stricken farmers and regional communities. #9Today pic.twitter.com/KQlR0lJy9r
— The Today Show (@TheTodayShow) 6 November 2019
However, Knight pointed out that it would take a lot longer than two years for many farmers and businesses to get back on their feet.
“Will you look at extending it beyond two years for those who need it?” she said.
“We will see about that,” said the Deputy Prime Minister.
“We have been monitoring the drought very closely. We have got people who live in these drought-affected communities. I live in a drought-affected community. I hear it every day, I report back as does the Drought Minister.”
Knight then asked why he couldn’t commit to making it available.
“What we have been doing with this drought is making a stepped payment and stepped packages all the way through,” Mr McCormack said.
Knight said, “It’s a pretty simple question. Will it be available? Yes or no?”
Mr McCormack replied, “The fact is we are making it available.”
Knight asked, “Beyond two years?”
Mr McCormack said, “We will see if it’s required beyond two years. If it’s required beyond two years. If it’s required beyond two years, well, of course, as a responsible government, as a government with the drought very much in mind, of course we will continue assistance. That’s what we do. That’s what we have done the whole way through. We have always monitored this drought and provided the assistance the whole way through as it’s been needed, as it’s been asked for.”
Knight pointed out that the drought measures in place did not include “exit packages” that have been requested by the National Farmers Federation to help farmers get off the land.
“It’s not — there are things that we will continue to look at,” Mr McCormack said.
“We want our farmers to stay on the land. Importantly, we want there to be a future in agriculture. Agriculture is not broken, by no means whatsoever. Agriculture still has a huge part to play food security in our nation is one of our most important things. We will continue to make sure that that food security is there. We will continue to make sure our farmers have incentive to stay on the land, to do the job they have always done for our nation.”
Under the plan unveiled by Prime Minister Scott Morrison on Thursday, millions of dollars will be released to local councils for job-creation projects to help out drought-affected farmers.