L E E K E R N A G H A N
AUSTRALIAN OF THE YEAR 2008
- The year in review -
I met Joe, his wife and two little girls at the Wimmera Machinery Field
Days site not far from where the family farm used to be. With a tremble
in his voice every now and then, Joe explained to me how the drought had
affected his family. They worked until there was nothing left to give.
Each year the dust clouds blew across the Wimmera /Mallee plains and then
they realised they couldn't hold on. They lost their home, their way of
life and the farm the family had lived and worked on for generations.
Joe confided to me that he had been treated for severe depression but
the worst was behind him now. He told me he had to continue…he couldn't
give up because his wife and two little girls were depending on him. Joe's
story had a major impact on my heart and my mind and it made me think
of all the other families like his, fighting this battle.
On Australia Day last year I received the greatest honour my country
could ever bestow on me by being named Australian of the Year 2008. On
receiving this award I paid tribute to the spirit of our people, the volunteers
and our farming families battling the most devastating drought in a hundred
years. Whilst I have worked to be the Australian of the Year for all Australians
and all Australia, I said then that I would dedicate much of the year
to visiting, understanding and being a voice for communities affected
by drought. This situation is important to me, as it should be for all
Australians because it's about who we are, our identity, how we relate
to one another and how we see ourselves as Australians in the world.
I have taken up some of the main concerns affecting people in the bush
to the highest levels of office in Australia. In the presence of the Prime
Minister, in a speech at Old Parliament House I said, "I don't believe
we should ever treat our farming families as statistics or numbers to
be crunched on a balance sheet. They are real people..... hard working
Mums and Dads....Nans and Pops and little kids growing up on the land.
They are not looking for a hand out ..... they just want a fair go...
a fighting chance."
Further, I wrote to the Prime Minister in September 2008 urging for
a better understanding of the plight of communities affected by drought
and asking for further action to support them. I wish to extend my heartfelt
thanks to the Prime Minister for acknowledging that more needs to be done
to assist drought-affected farmers. Over the past twelve months I have
also had meetings with the Federal Minister for Agriculture, Tony Burke,
in Canberra, Brisbane and Millmerran in Queensland. I greatly value the
opportunities I have had to have open and frank discussions with the Minister
who I found to be highly genuine and whose knowledge and concern for country
communities was impressive.
Background
In 2008 our Federal Government made a decision to end Exceptional Circumstance
assistance to many drought affected farming regions around Australia.
The termination of EC assistance continues today with many farming areas
currently under review.
I understand that there is a major review of drought policy under way
and I applaud the Government for this initiative. Much opportunity exists
to improve the current situation and to restore hope for those families
and communities who have battled drought and survived.
Following are several issues (but not all) that have been brought to
my attention by hundreds of farming families, industry and community representatives,
rural financial advisers, counsellors and rural aid organisations over
the past twelve months.
Many of these issues I have addressed with various levels of Government
and additionally the Kenny Report into the Social Impact of Drought whom
I had the opportunity to address in July.
Insufficient notice given to moving regions off Exceptional Circumstances
assistance.
After an assessment by the National Rural Advisory Council in Canberra
with input from Canberra-based Bureau of Rural Sciences, an area or region
may receive as little as TWO WEEKS notice that EC assistance will no longer
apply. The lack of sufficient notice and the impact of EC termination
on the family budget cause severe hardship and distress for many families.
Is this fair?
When EC ends, drought affected families may apply at Centrelink for Transitional
Income Support (TIS), which is basically unemployment benefits. TIS is
available for a period of twelve months. To apply, an applicant must fill
out a form consisting of 106 questions. Many people find this not only
daunting but also humiliating given their distressed financial and emotional
state. Rural financial advisers have informed me that eligibility criteria
for TIS is extremely tough, making many farming families ineligible for
assistance.
Many farmers and their advocates in drought affected communities believe
it is important that EC be extended for six or even twelve months
to allow restocking, replanting and re-equipping the farm to be a going
concern.
Fair and reasonable notice of the withdrawal of Drought assistance
would give families time to prepare for the future and will save families
and lives in the bush.
Most people in rural and regional Australia believe EC and TIS
should allow for recovery as much as survival.
When EC is revoked, many different and vital forms
of assistance are lost.
1. Loss of Household Support. This support assisted with
putting food on the table and basic necessities of life.
2. Loss of Health Care Card. Once EC finishes the Health
Care Card also ends and this causes great distress. Farmers then have
to reapply for a low income Health Care Card and go through all the questions
again.
3. Loss of Education Assistance. For farmers with children
at boarding school the farm assets are now added to the calculation for
boarding assistance and this cuts out many people. Parents then have to
consider taking their kids out of boarding school and either end their
schooling, school them at home, or the husband and wife split up and one
moves to a town and sends the kids to a local school.
4. Loss of Interest Rate Subsidy. The Interest Rate Subsidy
has been very important for farmers managing increased debt levels that
occur in times of drought. The interest rate subsidy has also been critically
important to farmers who have invested in plant/equipment and crops to
allow them to better manage natural resources in times of drought. Removal
of the Interest Rate Subsidy hurts many farming businesses and brings
increased stress to farming families already under pressure. Governments
are aware of this and are working to address this.
5. Loss of 50% State Government Rate Rebate. Access to
the 50% State Government Rate Rebate is also lost with the introduction
of the new Transitional Income Support Scheme. The rebate did make a positive
difference and its loss will add to the hardship of farming families recovering
from drought.
6. Off Farm Income. As a result of the drought many farmers
and their wives are forced to work "off farm" to service accumulated
debt, save their farm, and put food on the family table. Under existing
regulations "off farm" income either discounts or results in
the complete loss of assistance when a drought affected farmer takes on
a second job. As the current system stands, any hope a farming family
may have of working their way out of debt is shattered by the current
requirements of EC and the Transitional Income Support Scheme.
Surely we could be more supportive and I understand the Government
is looking at this.
Other Important Issues
There are a number of other important issues that are making life unnecessarily
difficult for our farmers. These include:
Water Charges and Water Allocations.
Farmers are forced to pay for water licenses but the state authorities
will not guarantee they will get the water they've paid for. So many farmers
are forced to pay for water they will never receive.
What other Australians would accept paying a government authority
for something they would never receive?
Drought Counsellors.
Drought Counsellors literally sustain life and hope in many communities.
These Counsellors work on a daily basis with farmers who are feeling disillusioned,
abandoned, and suffering severe depression. Disturbingly, I have also
been informed client numbers have increased significantly for a rural
child psychologist working in the drought affected Campaspe Shire.
I have been informed of uncertainty among Drought Counsellors as
to whether their work will continue to be funded by State Government beyond
June 2009. I have raised these concerns with the Minister.
Milk Price Cut.
Just prior to Christmas Day dairy farmers received notice by fax or email
that the farm gate price of milk would be cut by 13%. For most families,
this news was like a bomb being dropped. I have been advised that this
reduction will result in real terms, in a loss of approximately 20% of
a farmer's annual income. Dairy farmers and other primary producers are
too often paid a small fraction of the retail price for their produce.
It's often hard to see how the consumer is benefiting. Is this
really making us a better Australia?
Is it not now time for the Government to provide to rural producers
some protection in relation to farm gate prices?
Some Farm Facts
Australian farms and their closely related sectors generate $103 billion-
a- year in production- underpinning 12% of GDP. (Based
on modeling by Econtech for the Australian Farm Institute, Australia's
Farm Dependant Economy Report 2005.)
Australian farms produce 93% of Australia's domestic food supply. (Australian
Government Department of Agriculture, Forestry and Fisheries, Australian
Food Statistics 2007.)
Despite the worst drought on record, Australia's farm exports
earned the country $27.6 billion in 2006/07. (ABARE,
Australian Commodity Statistics, 2007)
Agriculture supports the jobs of 1.6 million Australians, in farming and
related industries, across our cities and regions accounting for 17.2%
of the national workforce. (Modeling by Econtech, Australia's
Farm Dependent Economy Report, 2005.)
Farmers care for our country. Each year farmers plant millions of trees
for environmental and conservation purposes. *Australian primary industries
have led the nation in reducing greenhouse gas emissions- a massive 40%
reduction over the past 16 years (1990-2006). *(Australian
Government Department of Climate Change, National Inventory By Economic
Sector 2006, 2008.)
Importantly, despite common misconceptions and the worst drought on record,
Government support for Australian farms represents just 6% of farming
income. By comparison, according to the Organisation for Economic Cooperation
and Development (OECD), in Korea it's 63%, Japan 53%, in the European
Union it's 32%, in Canada it's 23%, and in the United States it's 11%.
Every week in Australia, more farming families are forced off the land.
Action is urgently needed to prevent this sharp decline. Why is
there not similar investment in Australian farms that many of our international
competitors require?
As a nation we need to ensure that Australian farmers can compete
on an equal basis.
Why is this so important to all of us?
Australia has been built on the back breaking hard work, sacrifice, gritty
determination and ingenuity of Australia's farmers. For close to two centuries
the Australian economy has been carried by Australia's farming sector.
But more than this - more than just being a part of the national balance
sheet, Australia's farmers along with our defence men and women have built
our sense of identity and values. It is our responsibility and indeed
our privilege to reach out with generosity of heart and hand to these
extraordinary Australians struggling on the land. Whilst much has already
been done and is being done by government and non-government aid agencies,
perhaps every Australian should ask himself or herself what kind of nation
we would be and what kind of people we would become if our farmers disappear,
as they are. To understand their plight and reach out with a helping hand
is to be fully Australian. They have never given up on us…we should
never give up on them.
Special Thanks
As my twelve months as Australian of the Year draws to a close I'd like
to say how grateful I am to the many people I have worked with and come
to know through my travels around the nation.
I'd especially like to thank the people of Australia for your well wishes
and support and in particular the farmers who opened up their hearts,
their homes and their communities and exposed their feelings and finances
to me.
To my wife Robyn for being the love of my life and my partner in all
that has happened across the year. To my mates out there in music, thanks
for putting up with me spending so much time on this and not so much on
music. Special thanks to Hugh, Glenda and family, and Alan Patching. Enormous
thanks also to my manager Steve White for giving up most of your year
to help me with this. Thanks also goes to Tam, Kirrily, Warren and all
at the National Australia Day Council for your help and support throughout
the year.
I'd also like to thank the senior government leaders for seeing me and
to all those who nominated or voted for me, thank you for the incredible
privilege.
There is no doubt, this is the greatest country on earth but it's the
Australian people who make our country great. We are blessed to live here.
We are blessed to be Australians.
Sincerely, and with very best wishes,
Lee Kernaghan. OAM
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