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This Digest was prepared for debate. It reflects the legislation as
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CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer and Copyright Details
Rural Adjustment Amendment Bill
1998
Date Introduced: 2 July 1998
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: The amendments outlined in
this Digest commence on Royal Assent.
To introduce the
Farm Business Improvement Program (FarmBis).
The major amendments proposed by the Bill give
effect to the Government's decision, announced in it's September
1997 rural policy package titled Agriculture - Advancing
Australia (AAA), to introduce the Farm Business Improvement
Program (FarmBis).
As stated in the AAA package, the FarmBis
program is intended to:
... provide a framework for promoting a positive
approach to change across the farm sector. It will assist all those
involved in the farm business, including employees, to build on
their existing skills and improve farm business profitability and
sustainability.(1)
As stated by the Minister in the Second Reading
Speech to the Bill, the objectives of FarmBis are threefold:
-
- first, to increase farmer participation in learning activities
which will enhance the profitability, sustainability and
competitiveness of their business
-
- secondly, to develop greater acceptance of the benefits of
continuous learning and skills development, and its relevance to
the changing management needs of a competitive farm sector,
and
-
- finally, to enhance farmers capacity to identify and access
appropriate learning activities, and over time, influence more
flexible delivery of such activities.
Assistance under FarmBis program is intended to
be provided through direct financial contributions towards the cost
of programs and training activities in which farmers participate.
The activities supported are intended to include skills
development, farm business and financial planning and advice, farm
performance benchmarking, quality assurance, marketing, risk
management, rural leadership development and natural resource
management.(2)
FarmBis is to consist of two components, that
is, a Federal and State based component. The Minister in the Second
Reading Speech states that:
It is anticipated that the majority of FarmBis
funds will be allocated through the State based component to fund
State/industry/community agreed priorities in relation to training
and education within their regional communities and the rural
sector. A partnership agreement between the Commonwealth and each
State will set out the requirements for program objectives,
performance, monitoring, funding and other obligations.
A total of $50 million has been allocated over
three years by the Commonwealth to fund FarmBis.
The Government's rural policy package has
invoked a mixed response from farmers. However, it appears that the
bulk of the nation's farmers support the package. In respect to
FarmBis, it is reported in The Sydney Morning Herald of 21
July 1998 that
The farmers particularly applauded the element of
the plan soon to be launched - the Farm Business Improvement
Program (FarmBis).
A more cautionary reaction to FarmBis has come
from the Victorian Farmers Federation. It is reported in The
Age of 15 September 1997 that:
The Victorian Farmers Federation's policy director,
Mr Clay Manners, welcomes most aspects of the package, but is
concerned about plans to replace the Rural Adjustment Scheme with
the 12-month FarmBis education and skills training course.
The adjustment scheme had helped farmers when no
other help was available and its cancellation would leave a
gap.
'Farmers will be very sceptical about education and
training being seen as the panacea,' Mr Manners says.
Amendments to the Rural Adjustment
Act 1992
Item 9 of Schedule 1 of the
Bill inserts a new Part 4 (proposed sections
22AA-22AG), dealing with the Farm Business Improvement
Program (FarmBis), in the Rural Adjustment Act 1992 (the
Principal Act).
Proposed section 22AA provides
the Minister with power to enter into an agreement with an
individual for the Commonwealth to make them a grant relating to
the FarmBis. A grant is subject to such terms and conditions as the
Minister determines and must contain provisions relating to:
-
- performance requirements
-
- outcomes/targets
-
- performance indicators
-
- review and evaluation.
Payments are to be made out of money
appropriated by the Parliament.
Proposed sections 22AB and 22AC
provide the Minister with power to delegate his/her power under
proposed section 22AA and makes an amount
repayable by a person under an agreement a debt due by them to the
Commonwealth.
Proposed section 22AD provides
that the Commonwealth may enter into an agreement with a
State/Territory relating to FarmBis. Proposed sections 22AE
and 22AF deal with FarmBis payments to a State/Territory.
Commonwealth payments to a State/Territory under an agreement
relating to FarmBis may be made on terms and conditions contained
in an agreement and must, unless the Minister determines otherwise,
contain provisions relating to:
-
- performance requirements
-
- outcomes/targets
-
- performance indicators
-
- review and evaluation.
Payments made under an agreement are to be
provided on the basis that the Commonwealth and a State/Territory
each contribute 50% of the assistance provided under a scheme of
support relating to FarmBis, except where the Commonwealth and a
State/Territory jointly determine otherwise. Payments are to be
made out of money appropriated by the Parliament.
Proposed section 22AG makes an
amount repayable by a State/Territory under an agreement a debt due
by them to the Commonwealth.
1. Department of Primary Industries &
Energy, Agriculture - Advancing Australia.
2. Minister for Primary Industries and Energy,
Media Release, 14 September 1997.
Ian Ireland
26 August 1998
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 1998
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1998.
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