Struggling farmers in debt will be protected from banks moving in on them to foreclose under new laws passed in State Parliament this week.
Member for Burnett Stephen Bennett said the legislation, which received bi-partisan support last night, requires banks to offer debt mediation to farmers who found themselves in arrears before taking enforcement action.
“We recognise that more needs to be done to provide better services to assist farmers facing debt issues, particularly in drought-affected areas,” Mr Bennett said.
“This is about helping those farming families who are experiencing financial difficulty by ensuring they are treated fairly and with respect.”
Mr Bennett said the LNP delivered milestone changes by successfully moving amendments to establish a Farm Debt Restructure Office, which would tackle farm debt head-on.
“The Farm Debt Restructure Office will provide a process for the efficient and equitable resolution of farm business debt matters between mortgagees and farmers,” he said.
“A key aspect of delivering a resolution to farmers will be providing professional staff to aid farmers in financial distress with advice and ways to improve their profitability.
“We’ve acted because we are aware of the lack of professional debt restructuring services and the lack of suitable loans, and we believe our changes will help rectify those issues and help struggling Queensland farmers.
“I’m proud to be part of a team that stands up for farmers who are doing it tough.”
Mr Bennett said the LNP’s amendments would also see banks and other rural lenders compelled to provide data on lending and associated debt.
The new laws will take effect from July 1 and will be overseen by the Queensland Rural and Industry Development Authority.
ENDS.
Wednesday, 22nd March 2017