The Tasmanian Liberal Government’s Farm Debt Mediation (FDM) Bill 2024, which passed the House of Assembly today, demonstrates that there is no greater backer of our primary producers than the Liberals.
Minister for Small Business and Consumer Affairs, Michael Ferguson, said the Bill stems from the recommendations of the 2019 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
“The FDM scheme provides a structured negotiation process in which an accredited mediator assists farmers, who are often small business owners, and their creditors in resolving issues related to farm debts,” said Minister Ferguson.
“This scheme aims to complement early, informal negotiations by offering an additional layer of protection for farmers when informal approaches fail to resolve disputes.
“Our 2030 Strong Plan for Tasmania’s Future also backs in our primary producers with measures like removing red tape that hinders the provision of on-farm housing for workers, regulatory reform for agritourism operators, and addressing restrictions on the development of housing on agricultural land.
“We are also pleased to offer farmers who may be in financial difficulty funding support of up to $3,000 to participate in the mediation process.”
Under the new scheme, mediation must be undertaken before a creditor can initiate enforcement action under a farm mortgage. Both farmers and creditors have the right to initiate mediation, ensuring a balanced and fair process.
Liberal Member for Lyons, Mark Shelton, said until now, farmers have primarily relied on financial counselling and informal negotiation services provided by organisations such as the Rural Financial Counselling Services, funded by both Tasmanian and Federal Governments.
“The new scheme mandates that the costs of mediation are equally shared between the farmer and the creditor,” said Mr Shelton.
“This initiative demonstrates the Government’s commitment to supporting farmers and ensuring fair treatment in financial matters, aligning with our broader goals of economic stability and rural development.”
