Media Release

KAP Leader and Federal Member for Kennedy Bob Katter has described the Federal Governments Drought Relief Package announcement as “signing the death warrant of agriculture,” with 70% of Queensland suffering at the mercy of a drought of biblical proportions.

“We are being treated like mongrel dogs and that we should have a bit of bite about us; stand up and fight like tigers,” said Mr Katter.

“Whilst what the LNP has released today is essentially a good gesture and a step in the right direction, it is the very minor tip of the iceberg and much more is needed.

“Day after day graziers cannot afford to send their children to school, put food on the table or pay their mortgage.

“How is this package going to help a sixth generation cattle family that I spoke to yesterday, who is facing the choice of paying their mortgage or feeding their starving cattle?

“If the family pay their mortgage, they have no money to feed cattle and no alternative but to shoot the cattle. Shooting cattle means shooting their livelihood. If they feed their cattle; the banks will foreclose on their property. In either situation, their livelihood is gone,” said Mr Katter.

“We now estimate we have a Queensland farmer committing suicide every three weeks.

“I cannot see the government’s $10 million for mental health going anywhere near addressing the needs of geographically isolated communities such as Julia Creek - a town of 400 people, nearly 700km west of Townsville.

As an indication of how dire the situation is, Lifeline estimates that at least 16 farmers have tragically taken their own lives in Queensland in the last year.

“The lack of rain and live cattle ban has been diabolical for our cattle industry. This has further been exasperated by the skyrocketing value of the dollar, escalating costs of production, lack of and high cost of adgistment, our uneven terms of trade and spiralling rural debt.

“In early 2012, the average farm debt in Queensland was $700,000 this has now surged to an average of $1.2 million per farm.

“Even if Queensland gets a substantial slice of the pie here, we estimate that this funding commitment would save a mere dozen farmers,” Mr Katter said.

Mr Katter said that whilst the $320 million Drought Relief Package “is sincerely appreciated, we will be negotiating with the Government for the following elements that do not exist, namely –

• Injection of cash flow - small grant of money up front to those Australians living in drought declared regions of Australia;
• Significant investment in mental health services; and
• The establishment of an Australian Reconstruction and Development Board (ARDB) which would entail commercial banks writing off up to half of the existing debt (for which half of that value becomes a tax concession), enabling the ARDB to buy the bad debt at the discounted value and offer farmers refinancing at interest rates, lower than commercial lenders.

After 5 months in the saddle, the LNP Federal Government today announced a $320 million Drought Relief Package including $280 millions in concessional loans; $10million for pest management scheme; $10.7 million for mental health services and $12million emergency water infrastructure scheme.