Rumour to stop drought finance denied

Press, 2 June 1989, Page 2

Rumour to stop drought finance denied

By

DAVID LUCAS

The Ministry of Agriculture and Fisheries has quashed rumours that the Government’s carry-on finance package for drought-affected farmers was to be scrapped. Such rumours were untrue and counter-productive, the group director of MAFTech, Dr Peter O’Hara, said yesterday. The Government was fully committed to delivering the assistance voted under the

scheme. Details of the carry-on assistance package, under which the Government would pay the interest costs for two years on additional seasonal' lending to farmers, were announced on March 16. The $36 million scheme has not been taken up by financiers or farmers, however, because of its narrow eligibility and concerns over financier security.

A proposal aimed at simplifying and broadening the scheme was presented two weeks ago to the Minister of Agriculture, Mr Moyle. A subsequent lack of progress in modifying the scheme has been criticised by farming leaders. Mr Moyle announced on Wednesday that a redrafted carry-on package would be presented to the Cabinet next week. Dr O’Hara said the matter

was being treated urgently because it was important to get right any modifications. This must be achieved as quickly as possible to’ overcome the uncertainty and stress caused by inaccurate rumours. "The key matter to be determined is how to deliver that assistance so it will do the most good. The emphasis must be on looking forward to what farming will achieve and not back at what the drought has done,” he said. __________