August 10, 2011

 

Australia plays down financial support suggestion

 

 

The Australian federal government has played down a proposal that it is going to provide an additional AUD70 million (US$72.3 million) financial aid for the struggling live cattle sector.

 

According to News Limited on Tuesday (Aug 9), the government is working on a new aid package that will allow producers to apply for up to AUD300,000 (US$309,929) in grants or low-interest to no-interest loans.

 

It would potentially come on top of the AUD30 million (US$31 million) hardship package that the government announced in June.

 

But a spokeswoman for Agriculture Minister Joe Ludwig dismissed the report.

 

"All that we have is the AUD30 million (US$31 million) assistance package that was announced in June," she said.

 

"There is nothing to confirm."

 

The AUD320 million (US$330.6 million) industry was dealt a major blow when the government suspended trade to Indonesia for a month, ending in early July, to improve animal welfare standards.

 

The government's own estimates state that the suspension cost more than 320 jobs and stranded almost 400,000 head of cattle earmarked for delivery to Indonesia.

 

The new compensation package reportedly allows farmers to apply for as much as AUD300,000 (US$309,929) in working capital over the next 12-18 months, while the earlier hand-outs were capped at up to AUD25,000 (US$25,827) per business.

 

Northern Territory Chief Minister Paul Henderson this week criticised the existing compensation as barely a drop in the bucket and urged the government to stump up more money.

 

Although the ban was lifted in early July, the first shipments of cattle are only about to leave port in Darwin.