July 24, 2016
The State Government will introduce legislation to establish a farm debt mediation process to resolve financial disputes between banks and farmers.
Agriculture Minister Leanne Donaldson said the Farm Debt Mediation Bill 2016 would be an important component of the government’s strategy to reduce financial stress in rural communities.
“In the State Budget we announced a $36 million Rural Assistance Package to assist farmers whose incomes and profitability have been severely impacted by drought,” the Minister said.
“A number of measures have already been implemented, such as exemption from stamp duty on the inter-family transfer of farms and grants for climate risk and financial management planning.
“Legislation is needed to establish a process that will require banks and farmers to resolve financial disputes through an official mediator.”
Ms Donaldson said removing the need for expensive and drawn-out legal processes to resolve financial disputes would be a huge benefit to farmers in debt.
“The Rural Debt and Drought Taskforce reported that numerous issues were raised where farmers felt they had been unfairly treated by banks.
“The Australian Bankers’ Association has encouraged Queensland to consider legislation to provide consistency and certainty in line with mediation models currently operating in New South Wales and Victoria.
“Legislated mediation would be an important step and I hope it will attract bipartisan support in the Queensland Parliament.”
