Drought aid for farmers

Press, 1 September 1982, Page 8

Drought aid for farmers

NZPA Adelaide The Australian Government yesterday announced two drought a’id measures for farmers'and called on the states to implement a sixpoint plan to help the rural sector.

The Federal Government will provide interest payment subsidies on farmers’ debts where interest rates exceed 12 per cent. It will also give a 50 per cent subsidy on purchases of fodder for livestock.

The plan was announced by the Prime Minister (Mr Malcolm Fraser) after a Cabinet meeting at Adelaide. Meetings have been called for today with the main banking groups to initiate the subsidy payment scheme. In return for the Commonwealth help the states have been asked to raise the

limit on carry-on loans to $40,000 or double their current level, whichever is the greater. The Federal Government will require that money be given to the states for drought loans be lent by the states at no more than 4 per cent.

They will also be asked to give a 100 per cent water cartage subsidy, a 75 per cent freight subsidy on transport of fodder for livestock, the right for local government to sink water bores and be fully reimbursed, and - to implement carry-on loans for small businesses in droughtdeclared areas. In Canberra the Bureau of Agricultural Economics said that survey data showed that about 80,000 properties — or 60 per cent of Australia’s farms — were now in the grip of drought.