Victorian Nationals Senator Bridget McKenzie said today Deputy Prime Minister Barnaby Joyce had acted decisively and quickly to the concerns of dairy farmers who attended a series of Roundtables she chaired late last year in regional Victoria.
The Roundtables were held between 12 – 16 December at Tangambalanga, Congupna, Morwell and Camperdown to hear the views of dairy farmers regarding the delivery of assistance measures, including the Coalition Government’s $579 million dairy assistance package to support farmers affected by reduced farm gate milk prices.
The subsequent report was prepared by the Department of Agriculture and Water Resources and the Department of Human Services.
“I heard from a number of dairy farmers who attended the Roundtables in the Kiewa Valley, in Shepparton, Camperdown and in Gippsland about long waiting times for benefits, lost documents and the mountain of forms.
“I reported their frustrations back to the Deputy Prime Minister, who had asked me to Chair the Roundtables and he has implemented immediate measures to make it easier for dairy farmers experiencing hardship, to speed up payments of the FHA.
“These included amendments to the Farm Household Support Act to more precisely define farm assets when assessing eligibility as well as removing the requirement to serve an Ordinary Waiting Period or Liquid Assets Waiting Period before people can receive payments,” Senator McKenzie said.
“However the feedback received during the four Roundtables was broader and included concerns about dairy processor behaviour, the need for social and other supports, dairy industry representation and industry structure, strategy and politics.
Senator McKenzie said these roundtables are further evidence of the Coalition Government's commitment to support Australia's dairy farmers.
“$45.5 million in Dairy Recovery Concessional Loans have been approved for Victorian dairy farmers and there are currently 378 Victorian dairy farmers receiving the Farm Household Allowance, an increase of 263 since 2 May 2016, Senator McKenzie said.
“In another example of strong action by the Coalition government, the ACCC is conducting a detailed inquiry into the dairy industry that will investigate the operation of the industry, arrangements in the supply chain and the impact of issues such as $1 a litre milk.”
VICTORIAN DAIRY ROUNDTABLES REPORT
Monday, 12 December Tangambalanga Community Centre, 29 Kiewa East Road, Tangambalanga
Tuesday, 13 December Congupna Community Centre, Katamatite Shepparton Road, Congupna
Thursday, 15 December Morwell Bowling Club, 52 Hazelwood Road, Morwell
Friday, 16 December Camperdown Football Club, 15 Adeney Street, Camperdown
Prepared by Department of Agriculture and Water Resources
This report has been prepared by the Department of Agriculture and Water Resources with input from the Department of Human Services. It reports on issues raised by stakeholders and the responses given during the roundtables. Government will consider the issues raised by stakeholders during these roundtables in the course of reviewing relevant programmes and administrative arrangements.
In the week commencing 12 December 2016 Senator Bridget McKenzie, on behalf of the Deputy Prime Minister, conducted four dairy roundtable meetings in regional Victoria. The purpose of these roundtables was for farmers who had experienced problems in accessing measures under the Australian Government’s May 2016 Dairy Support Package, and/or had questions about the measures, to relay their experience and seek further information.
Each roundtable included more than an hour of feedback time where participants were given the opportunity to tell their story and ask questions in an open forum. Additionally officers from the Departments of Agriculture and Water Resources (the department) and Human Services (DHS) and other organisations such as the Rural Financial Counselling Service (RFCS) and Rural Finance were available for over an hour after each roundtable discussion for participants to raise specific issues.
This included farmers being able to discuss and request information about their own applications for the Farm Household Allowance (FHA).
Each roundtable meeting attracted 20-40 farmers and members of farm communities. In addition local accountants, volunteer community support organisations, social services, local and state representatives and respective federal members also attended the meetings.
Roundtable participation, including community members, by district were approximately:
Tangambalanga – 22
Congupna – 25
Morwell – 17
Camperdown – 45
Whilst the majority of views and issues raised in relation to the government’s support package for dairy farmers were about issues associated with accessing the support, it was noted on several occasions that where participants had been able to access FHA or dairy concessional loans the measures had been useful and beneficial.
This report will focus on the government support package and particularly FHA and concessional loans. However the feedback received during the four meetings was broader and included concerns about dairy processor behaviour, the need for social and other supports, dairy industry representation and industry structure, strategy and politics.
The key themes that emerged in relation to the government’s support package were:
interaction with DHS (Centrelink)
the FHA application process
the farm financial assessment process
processing times for FHA applications
options to deal with ‘crisis’ situations
case management during the application process
treatment of water and other assets
inability to pursue off-farm income whilst maintaining access to maximum FHA payments
assistance available after FHA
support for non-Australian farmers
support to retain farm employees
concessional loans.
Each of these themes are discussed further below. A comprehensive register of all individual issues
raised over the four meetings is at Attachment B.
At each meeting, farmers who indicated they had specific issues in progressing their FHA application/ assessment were encouraged to work directly with one of the DHS representatives on-site to resolve the issue(s) or agree a process for resolution.
DHS staff engaged with over 80 customers during the round tables, with advice and support
provided on how to claim FHA, what financial and non-financial supports are available to
them and general information relating to DHS’ services.
One on one intensive support was provided to 23 customers during the sessions, with a
number of FHA claims being finalised as a result of working with DHS representatives at the
sessions. Back payments to these customers have now been made.
DHS also made a number of follow up calls to customers both in attendance and some who
were unable to attend to offer further assistance through social work services and referrals
to other service providers.
DHS provided intensive support to eight customers in Tangambalanga, three in Congupna,
two in Morwell and two in Camperdown in addition to providing support and general
information to many other members of the local communities.
Discussion – Themes and responses
The following table captures the key themes that were raised by stakeholders in relation to FHA and other government assistance. The responses indicated
are the responses given during the roundtable meetings or subsequently agreed between departments.
Theme Response
Interaction with DHS (Centrelink)
Each round table included a number of stakeholders who reported
unsatisfactory service from DHS and Centrelink. This included staff
not being able to provide accurate or consistent information about
FHA, long waiting times on assistance hotlines, rudeness and a
perceived lack of respect.
In all cases where service provided had been below normal
expectations DHS apologised and committed to rectifying the
situation by ensuring training and information materials for service
centre staff was up to date and accurate, looking at processes and
communications approaches to ensure they are timely and
respectful.
FHA application process
Farmers, accountants and farm community members noted that the
forms to access FHA were complex and long. The need to enter
identification information in full on each form and the lack of ‘prefilling’
was also criticised. Farmers and farmers’ partners noted they
needed to spend many hours to complete the forms—time not spare
whilst running a farm. A number of reports were made of IT
problems and forms not saving properly.
Several applicants noted that they had provided the same documents
or information on multiple occasions. Communication between DHS
and applicants was reported as a problem with letters from DHS
arriving too late to action or not at all. Generally there was a view
that there is need for a more user-friendly application process.
Both DHS and the department committed to undertake a review of
the FHA and generic social security forms that FHA applicants are
required to complete to wherever possible remove duplication, as
well as redundant or non-essential questions.
DHS agreed to look at the online application process to see if there
are any improvements that could be made.
DHS agreed that binary eligibility questions (such as Australian
residency / citizenship) should be moved to the front of the
application.
The departments will continue to refine communications materials
relating to FHA to simplify key messages and clearly articulate
requirements.
DHS agreed to look at the communication protocols they use in
relation to FHA applicants.
The Farm Financial Assessment (FFA) process The department and DHS have agreed to work on moving the FFA
process outside what newly granted FHA recipients could construe to
be part of the ‘application’ period. This will mean FHA recipients have
access to case management assistance when undertaking the FFA.
The department and DHS will also undertake a review of the FFA
process to ensure it is as efficient as possible and is generating the
expected outcomes and benefits for FHA recipients.
Processing times for FHA applications
DHS noted that the average time for applications to be processed
should be 28 days for simple applications and 42 days for complex
applications.
DHS also noted that the complex structure of farm businesses means
it can take time to process claims and that certain information is
required to satisfy the design of the programme.
In all cases where service provided had been below normal
expectations DHS apologised and committed to rectifying the
situation by ensuring training and information materials for service
centre staff was up to date and accurate, looking at processes and
communications approaches to ensure they are timely and
respectful.
Options to deal with ‘crisis’ situations The department is exploring the benefits and costs of
complementary ‘crisis’ payment mechanisms that would be linked to
but not be an extension of FHA.
Case management during the application process DHS agreed to explore providing a single point of contact for the
application process.
The department (and DHS) are working with the RFCS to update the
existing protocol to ensure counsellors are able to provide a
complementary service to DHS officers in assisting clients during the
FHA application process.
Treatment of water and other assets During the roundtables Senator McKenzie announced that the
Deputy Prime Minister had made a new Minister’s Rule to clarify the
treatment of water assets. This rule commenced on 17 December
2016.
FHA policy
A number of participants noted the FHA application process should
be designed better to accommodate complex farm business
arrangements (such as trust structures). Additionally, participants
pointed out the restrictions around off-farm income are not
conducive to the programme achieving its objective of encouraging
The department will consider these issues in its ongoing FHA
improvement process, noting that the Deputy Prime Minister has
already agreed to consider removing the liquid asset and ordinary
waiting periods.
recipients to access greater off-farm income to improve their
situation. The treatment of liquid assets and waiting periods was also
questioned, particularly in relation to the sale of assets generating a
‘false’ income. It was also suggested that where a farmer is on FHA
any employees of the related farm business should be automatically
eligible for Newstart (or Youth) Allowance.
Assistance available after FHA Departmental officers explained during the meetings that the current policy is for FHA to be available for three years.
The department is working with DHS to ensure all possible services
are being provided during FHA clients third year to allow a successful
transition. This includes investigating transition mechanisms to the
post-FHA phase for individuals who have exhausted their three year
entitlement, access to other support payments, RFC services,
employment placement services and developing post FHA business
plans.
Support for non-Australian farmers Upon the department exploring the feasibility of access for non-Australian farmers to the concessional loans scheme, it was
found that while expanding the eligibility of concessional loans
schemes to NZ citizens operating dairy farm businesses in Australia
may provide benefits to some NZ citizens, it would also risk
exhausting the $250 million allocation in 2016-17. On balance, the
department considers it is reasonable to maintain the status quo.
Departmental officers explained during the meetings that, because
FHA is tied to the broader social security system (where
non-Australians are not eligible for universal support), enabling
access to FHA for non-Australian farmers would require a decision at
the social security system level to change the restriction.
Concessional loans The department will develop a communications plan to ensure
farmers, trusted advisors and relevant service providers have access
to clear information about concessional loans and how they can be
accessed.
Other Issues
During all four roundtables stakeholders were critical of the actions of some dairy processors
(enforcing retrospective price cuts) and sought information about the government’s position and what action it might take. The general response in relation to this was that the ACCC and ASIC inquiries into the action taken by dairy processors was the appropriate mechanism to fully
understand the actions of the processors and government would respond to its findings and
recommendations in due course. In addition, at the Government’s request the ACCC is conducting a detailed inquiry into the dairy industry that will investigate the operation of the industry, arrangements in the supply chain and the impact of issues such as $1 per litre milk. Attendees were encouraged to participate in the ACCC inquiry.
Whilst mostly limited to one roundtable (Camperdown) a number of stakeholders expressed strong views about the structure of the dairy industry, the representation arrangements and also the utility of dairy levies. Senator McKenzie noted that these are industry issues and encouraged attendees to participate in industry organisations to be satisfied with the elected officers in industry representative bodies to ensure farmers views and interests are appropriately represented. In terms of the dairy levy, the government has recently responded to industry’s own calls for improved flexibility and efficiency in the dairy levy setting arrangements. The amendments to the Dairy Produce Act 1986 which passed the Parliament this year and the making of the Dairy Produce (Dairy Service Levy Poll) Instrument 2016 which took effect on 20 December 2016 were at industry’s request and followed a thorough consultation process that demonstrated strong support from dairy farmers for the changes. The changes include a mechanism which allows farmers to disagree with a levy decision and request a levy poll be held if they can gather support from 15 per cent or more of levy payers.