Bill Byrne
March 22, 2017
From July 1, banks will not be able to foreclose on Queensland farming properties without offering mediation.
The Queensland Government’s new Farm Business Debt Mediation Bill 2016, passed in Parliament on Tuesday, will require financial institutions to offer debt mediation to farmers who are in arrears.
“The Government is committed to supporting our $17.32 billion primary industries sector,” Agriculture Minister Bill Byrne said.
“Farming in Queensland is not a straightforward process.
“Queensland’s agricultural sector is vulnerable to external pressures, such as climate and market forces, global financial events and changes in domestic rural credit policies.
“We want to ensure farming families experiencing financial difficulty are treated fairly by financial institutions when they are faced with the daunting prospect of selling property assets to repay loans.”
Mr Byrne said the primary objective of the new law was to provide a process for the efficient and fair resolution of farm debt matters.
“Mediation is a confidential process and an alternative to expensive and drawn-out legal processes,” Mr Byrne said.
“The legislation is not intrusive – it does not prevent financial institutions and producers from using informal negotiations to resolve their disputes.
“But if informal talks fail the lender will have to offer mediation before starting enforcement action.”
Farmers have an option to decline the offered mediation.
The Queensland Rural and Industry Development Authority – the new name of QRAA from July 1 – will oversee the process and accredit mediators.
