Actions are urgently needed to break the downward spiral impoverishing too many rural Queenslanders – and a new report shows the way, says a QUT economist.
Dr Mark McGovern, from QUT’s Business School, was on the 12-member Rural Debt and Drought Taskforce, which has received over 120 written submissions and consulted with rural communities across the state since it was established by the Queensland Treasurer last November.
“The tone of those meetings was one of widespread concern, clear financial and personal stress bordering on desperation, and too many needless tragedies - this from hard-working Queenslanders, on-farm and in town, who are doing the best they can but have largely been caught up in circumstances beyond their control,” Dr McGovern said.
“It’s a situation that’s mirrored around the country but ongoing drought has made the stresses particularly acute in Queensland – stresses that have been exacerbated by the foolish removal of previous drought support arrangements by COAG in 2013 without any transition arrangements.”
In a newly released report, the taskforce has proposed 14 recommendations to stabilise and reinvigorate Queensland’s primary industries and rural communities, including a royal commission into dubious financial conduct.
“There are comprehensive systemic and market failures occurring within rural finance,” Dr McGovern said.
“It’s not a simple story of a few foolish farmers or bankers – we’re talking about a comprehensive failure that needs to be investigated thoroughly.
“While we heard some clear examples of proper financial conduct reported, we also received repeated reports of serious financial misconduct.”
Dr McGovern said he expected the Queensland Parliament to support all recommendations.
Key recommendations involve:
- establishing a Rural and Industries Development Bank
- developing an independent Farm Debt Reconstruction Authority
- facilitating the uptake of primary industries income protection and like schemes
- initiating a Royal Commission to investigate practices, product flaws and systemic failures that have corrupted prudent rural finance
- providing more realistic natural disaster arrangements to help deal with drought.
“Together, these recommendations provide a circuit breaker to give rural enterprises a fresh start,” Dr McGovern said.
“Business-as-usual responses just won’t fix the problems rural communities currently face, like farm fire sales and impoverished townships.
“All recommendations are well argued in the report. The taskforce addressed the terms of reference well, conducting extensive consultation and analysis.
“I particularly note the cooperative and collaborative spirit between taskforce members. I commend everyone involved for all their hard work in developing this major report in such a tight timeframe.
“I look forward to seeing government action in the near future. Rural problems are deepening across the state. They need to be addressed urgently.”
Media contact:
Kate Haggman, QUT Media, 07 3138 0358, kate.haggman@qut.edu.au
After hours Niki Widdowson QUT Media team leader, 0407 5585 901, media@qut.edu.au
