Media Releases

The Victorian Coalition Government has formally appealed the end of Exceptional Circumstances (EC) assistance to food and fibre producers in flood-affected areas of Victoria.

 

Minister for Agriculture and Food Security Peter Walsh wrote to Federal Labor Minister Joe Ludwig yesterday calling for the continuation of EC assistance in a number of shires including Gannawarra and Campaspe, said Member for Rodney Paul Weller.

 

Mr Weller said EC assistance for the farmers across the Rodney Electorate was due to expire tomorrow.

 

 “The Baillieu Government is strongly opposed to the lifting of EC declarations in the agricultural areas worst affected by unprecedented summer rainfall and resulting floods,” Mr Weller said.

 

“We have made that view clear to the Gillard Government on a number of occasions.

 

“The financial impacts of a decade of drought coupled with the effects of this summer’s devastating rains provide an overwhelming case for the continuation of Federal assistance.

 

“Flood and rain-affected producers meet the necessary criteria as specified under the EC system.”

 

Mr Weller said the end of EC potentially left a large number of farm families exposed to hardship and without an adequate safety net.

 

“The summer rainfall has been a one-in-25-year event. Some food producers have not been able to resume farming and the majority of farmers are struggling to recover,” Mr Weller said.

 

“Many families are under increased pressure as a result of the rain and flood events following multiple years of drought.

 

“The Gillard Government must not abandon Victorian food and fibre producers who have borne the brunt of this year’s damaging rainfall and heavy flooding.”

 

Mr Weller said his colleague Peter Walsh, Minister for Agriculture and Food Security, was still in negotiations with the Commonwealth to obtain further support for flood-affected agricultural areas under the Natural Disaster Relief and Recovery Arrangements.

The Nationals Member for Rodney Paul Weller has raised concerns over the massive rise in management and administration costs at Goulburn Murray Water over the past four years.

Annual reports for the company show management and administration costs have risen from $10,172,000 to $20,848,000 between the 2004/05 and 2008/09 financial years.

Mr Weller said the exorbitant rise was of great concern to irrigators and others looking to invest in irrigation farming in the GMW region.

“I have sought an explanation from the Water Minister as to how these costs could rise so significantly in just four years,” he said.

“CPI rises of 3.5% per year during that period would result in a rise to less than $12 million and these increases are way above and beyond that.”

Mr Weller said he had raised a Question on Notice in State Parliament today requesting an explanation from the Minister to assist irrigators and potential investors to understand the need for such steep rises.

“I have asked for a breakdown of these costs which include board costs, the cost of operating consultative committees, executive staff salaries and related costs, other administrative staff salaries and related costs and consultant’s fees,” he said.

“I have also sought an explanation as to the approximate increase in CPI over the four year period where the expenditure items have increased by more than 10 percent.

“Considering that there will be less water in the GMW region in future due to the Federal Government’s Water buyback and the State Government’s climate change predictions, irrigators have a right to know whether these costs will fall so the management and administration cost per mega-litre doesn’t blow out to levels that will deter further investment in the GMW region.”

The Nationals Member for Rodney Paul Weller has urged the Brumby Government to deliver projects in the Gannawarra Shire that will deliver at least 100 new permanent long-term jobs for the region.

In State Parliament last night Mr Weller said the shire had been hard hit by job losses as a result of the government’s decision to declare Gunbower Forest a national park and yesterday’s announcement by Murray Goulburn Co-operative that it was closing its cheese-making facility at Leitchville.

He said the Bracks and Brumby governments’ environment, water and drought policies had been disastrous for the Gannawarra Shire.

“When the government declared 80 per cent of the Gunbower Forest a national park, it took jobs in the timber and cattle industries away from the region.

“And because the Victorian Labor Government has failed to implement drought support for farmers which will hold the milk flow for northern Victoria at a level that can sustain all the milk factories, Murray Goulburn has been forced to close its Leitchville plant which could result in the loss of a further 80 jobs.”

Mr Weller said the government’s water policies had also taken their toll on the region.

“The dairy industry well knows that last year and the year before losses in the Goulburn Murray Water irrigation district were less than 400,000 megalitres, yet the government continues to insist that it can save 425,000 megalitres through Foodbowl Modernisation,” he said.

“The dairy industry has no confidence that the government can achieve these figures, and the dramatic drop in milk flow has proven that.”

Mr Weller said it was imperative that the Minister for Regional and Rural Development act to promptly return jobs to the Gannawarra area.

“If the Minister fails to act, the outcome for the communities of Gannawarra Shire could be quite disastrous,” he said.

“We all know when jobs are cut you can have flow-on effects that lead to further losses, then services leaving the area which lead to further losses and the downward spiral continues.

“I ask the Minister to instruct Regional Development Victoria to deliver projects that provide 100 full time permanent jobs in the Gannawarra Shire so we do not see communities decimated due to the government’s inaction.”

The Nationals Member for Rodney Paul Weller has blamed poor water policy by the Brumby Labor Government for the closure of Murray Goulburn’s cheese mill factory at Leitchville.

Murray Goulburn announced today that it has been forced to close the Leitchville site due to a severe decline in milk production in northern Victoria over the past eight years.

Approximately 80 staff will be affected by the closure.

Mr Weller said poor water policy by the Brumby Government had failed to give dairy farmers the confidence to invest in the future.

“The government has failed dismally to have policies in place to support agricultural industries in northern Victoria,” he said.

“In 2005, 147 workers at Tongala’s Nestle plant lost their jobs as a result of a major company restructure, last year more than 100 staff at HW Greenham & Sons lost their jobs due to the major reduction in cattle numbers across the region - and now this.

“Premier Brumby is doing nothing to give dairy farmers in northern Victoria the confidence to keep going.”

Mr Weller said milk production in northern Victoria had dropped from 3 billion litres in 2001/02 to a forecast 1.75 billion litres this year.

“That decrease amounts to a 40% drop in eight years,” he said.

“A decrease of that size has to have an impact and now we are seeing the flow-on effect in our manufacturing and agricultural support industries.”

Mr Weller said he had been advised by Murray Goulburn that staff at the Leitchville plant would be offered opportunities at other Murray Goulburn sites and would be assisted with retraining.

He said it was critical that the government play its part in supporting that process.

“The dairy industry crisis in northern Victoria is a direct reflection of the Brumby Government’s inaction during years of prolonged drought and water policies which are giving farmers no confidence to invest in the sector.

“The government has sat on its hands while the dairy industry in northern Victoria has shrunk so let’s hope it does all within its power to assist Murray Goulburn and all affected workers at Leitchville through this difficult time.”

The Brumby Government has slashed drought support to Victorian farmers at a time when it should be increasing assistance to help the industry recover, The Nationals Member for Rodney Paul Weller said today.

Mr Weller criticised the Victorian Labor Government over its decision to cut its drought support package from $115 million in 2008 to just $47 million this year.

He said the Premier’s justification for winding back the package would not sit well with country Victorians.

“Premier Brumby has tried to justify the funding cut on the basis that conditions were worse last year than they are at the present time.

“We may have seen some good rains in some areas in recent weeks but it will take a long time for that to translate into income for farmers.

“The Premier still doesn’t get the simple fact that when it rains, it does not rain money, and there will continue to be a desperate need for financial support.”

Mr Weller said the $38 million in new drought support measures would benefit some farmers but far greater support was needed.

“Farmer debt in central and northern Victoria has tripled since 2000, dairy prices are 25% lower than they were last year and there has been a significant downturn in other commodity prices, he said.

“Instead of supporting farmers through this period, the government has slashed its support, including cutting the municipal rate subsidy from 50% to 30% and dropping the Small Towns Development Fund.

“By cutting drought support funding, the Brumby Government is showing just how out of touch it is with the real financial position of Victorian farmers this year.”

Mr Weller said Labor should have announced its drought support package on July 1 to assist farmers in making critical decisions on their futures.

He said the late announcement had forced many farmers and their families to endure unnecessary hardship, anxiety and stress.