Rural and Regional Adjustment (Development Assistance) Amendment Bill 2016

Introduced: 26/5/2016By: Mr R Katter MPStatus: Discharged

Regional Queensland Business & Economy Cost of Living

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Plain English Summary

Overview

This bill proposed turning the Queensland Rural Adjustment Authority into a new Rural and Industries Development Bank with the power to borrow money, lend commercially, and restructure debts for farmers and rural businesses. Introduced as a private member's bill by Mr R Katter MP, it was later discharged and did not become law.

Who it affects

Primary producers, graziers, and small businesses in rural and regional Queensland who struggle to access finance from commercial banks would have been the main beneficiaries.

Key changes

Rename the Queensland Rural Adjustment Authority to the Rural and Industries Development Bank
Give the authority the power to borrow, raise, lend, and invest money (including through State or Commonwealth-guaranteed securities)
Allow the new bank to directly give financial assistance rather than only administering existing schemes
Enable debt restructuring for primary producers and small businesses
Bill was discharged and did not become law

How this affects you

Regional Queensland

•Farmers and rural businesses would have had access to a government-backed bank offering tailored loans and debt restructuringClause 7The authority's functions would include directly giving financial assistance and giving other financial assistance to approved applicants.
•The bill was designed around feedback from 13 regional towns from Normanton to St George and Mareeba to BundabergA multi-party Taskforce travelled Queensland and received 109 written submissions and 400 attendees before recommending a Rural and Industries Development Bank.
•The bill was discharged so no new rural bank was created and existing QRAA arrangements remain in place

Business & Economy

•Rural small businesses would have been able to restructure debts and access commercial loans through a state-run lenderClause 4Financial arrangements would include borrowing, lending, investing, restructuring a debt, and restructuring the business of a primary producer or small business.
•The new bank would have been able to raise wholesale finance through State or Commonwealth-guaranteed securitiesClause 4
•None of these expanded lending powers took effect because the bill was discharged

Cost of Living

•Farmers facing unviable debts from drought, flood, or falling land values would have had a new avenue for debt restructuringThe explanatory notes describe industry participants needing debt restructure due to exceptional seasonal conditions, flawed government policy, and deflation of capital values.
•Producers who fall outside commercial bank lending criteria but are otherwise viable would have had a financing optionNo market exists for producers and others who fall outside tight financial guidelines but who can still present a case for a viable future.

Bill Journey

Introduced26 May 2016

First Reading

Committee

Committee Report28 Nov 2016

Committee report tabled

Second Reading

Referenced Entities

Legislation

Rural and Regional Adjustment Act 1994

Organisations

Queensland Rural Adjustment Authority Rural and Industries Development Bank

Sectors Affected

Agriculture Financial Services

Classified using AGIFT/ANZSIC Australian government standards