The KAP is calling on drought-affected producers from across Queensland to assist with the case for a reconstruction board.
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A number of committee hearings including one today (Tuesday) in Cloncurry will give rural residents the chance to discuss the KAP's Rural and Regional Adjustment (Development Assistance) Amendment Bill.
"Debt is one of the biggest burdens our producers are shouldering, there is a clear need for an alternative loaning facility," Member for Mount Isa Rob Katter said.
Mr Katter said average debt in regional Queensland was increasing, but the current model provided little benefit.
"There have been efforts across both major parties in the last few months to try and come up with improvements, but in the years before that they haven't lifted a finger,” he said. "Through the KAP bill the drought concessional loans of increased capacity will be the key component to assisting and uplifting these towns.”
Mr Katter said he was strongly opposed the government's softer alternative mediation bill, and said the loaning facility he proposed has proven to be a success.
"The Farm Debt Mediation Bill is a nice suggestion, but we need a big tool that can provide financial stimulus to agriculture in the state, to allow it to become the economic provider it was in the past," Mr Katter said.
"This has been tried and tested before, this is not a radical idea, we've done it before through the QIDC which was a benefit to the taxpayer.
"I believe this bill creates a vehicle that can accommodate a separate loan book which will act as a circuit breaker for this cycle of debt.”
Member for Dalrymple Shane Knuth said while he supported the intention of the Government's bill which will be debated simultaneously, a reconstruction board was the only way to deal with this structural issue.
"Current loaning facilities don’t have the capacity and will not help restock Queensland and bring life into the towns, neither will the government's mediation plan," Mr Knuth said. "It's a Clayton's solution; the only way forward is through the adjustment facility.”
The Finance and Administration Committee will be holding public hearings on both the Farm Business Debt Mediation Bill 2016 and the Rural and Regional Adjustment (Development Assistance) Amendment Bill 2016 in Cloncurry Tuesday from 10-11.30am at TAFE Queensland North, Cloncurry Campus, 35 Ramsay Street,