AgForce Queensland has expressed its alarm at calls for funding to the Rural Financial Counselling Service (RFCS) program to be cut by up to 20 per cent.
The recommendation, which has concerned primary producers and farm groups across Australia, was made through the National Rural Advisory Council (NRAC) review of the federally-funded RFCS.
The RFCS provides invaluable assistance to primary producers experiencing hardship.
With current climatic conditions in Queensland, AgForce said it would expect funding to increase or at least be maintained at current levels.
AgForce CEO Charles Burke said while the prevailing view throughout the report confirms there is an ongoing need for the RFCS, it was frustrating to see a purely economic rationale for the majority of recommendations.
“The findings show that while client numbers have dropped in some regions and increased in others, on the whole there remains strong demand for RFCS services,” Mr Burke said.
“This is why it is so difficult to comprehend why the report is so heavily focussed on cost cutting.”
The available academic data within the report confirms that financial hardship is an ongoing issue in the primary industries, and that the RFCS has been effective in providing crisis assistance, business improvement services, and referrals to other professionals, debt mediation and pre-referral succession planning services, which Mr Burke said are essential to those in isolated areas.
“AgForce Queensland understands that a large proportion of the state’s primary producers have little to no access to these types of specialised financial services and it is important to note there is no other remote assistance program currently on offer in Queensland,” Mr Burke said.
“In times of drought and economic hardship like we are currently experiencing, the need for a program like the RFCS has never been higher.”
Throughout the consultation period, the NRAC observed some service providers currently have excess capacity, but rather than fill this capacity by improving program structure and efficiency, the recommendation was to reduce funding.
“The fact that this program is providing a service over and above what was originally anticipated underlines the fact that there are large gaps in financial services provided in rural Queensland,” Mr Burke said.
“Both short and long-term effects of potential funding reduction must be fully considered before any changes are made to the current service delivery model.
“On the whole, we are disappointed with the details of the report.
“AgForce Queensland urges Federal Minister for Agriculture Barnaby Joyce to further engage with stakeholders to ensure this effective program continues.”
