Dear Valued Interested Persons,
On the 22nd of July 2019 Senator The Hon Bridget McKenzie was kind enough to send a letter to OBA Consulting – we look forward to working with Bridget and
her Department as The Australian Agriculture sector seeks to grow to $100 Billion:
In June 2019 OBA Consulting submitted a proposal to the Federal Government suggesting Cattle Drought insurance be addressed on a similar basis as the Australian Reinsurance Pool Corporation, here , addresses losses consequent to acts of Terrorism.
Notwithstanding ongoing criticism from various sources over the dissemination of the $3.1 Billion Drought assistance package much vaunted before the recent Federal Election the NSW Government recently committed $500 Million in drought funding here
Brett’s views, previously expressed, on bailout packages are as follows:
Bailout measures are reactive and retain reliance on the Government to compensate Farmers post loss;
Government investment in premium subsidies that assist those that take the prudent steps to transfer exposure to loss via insurance or other means of risk transfer prior to loss greatly assists Farmers to ‘plan for loss’;
In relation to the circa 500,000 head of cattle with a book value of circa $500,000,000AUD lost consequent to flooding in QLD in February 2019 the $3.1AUD billion North Queensland Flood Recovery Package from the Government only addresses QLD Farmers and is reactive;
A solution is required nationally that assists those that adequately ‘plan for loss’ for the 27,000,000 head of cattle in this great country of ours nation-wide;
My view is NOT that the Government is not providing financial assistance to Farmers – it is providing financial assistance – the problem is the financial assistance is at the wrong chronologic end of the problem (ie post loss);
Costs associated with premium subsidies prior to insurance or risk transfer solutions being taken out, which ultimately safeguard those who take the prudent steps to mitigate their financial exposure to extreme weather risk are needed and are far more productive and efficient that bailout packages post catastrophic losses which can often suffer significant dilution by the time they reach the Farmers pocket consequent to supply chains and other factors – an issue I have seen firsthand for other recipients of funds as National Insurance Manager at Australian Red Cross from 2009 – 2012;
As many of you will be aware on the 18th of July the NSW Government also released the following in relation to Income Protection for Farmers with respect to Drought here:
The Murray-Darling Basin is again centre stage featuring on ABC online 26th July here
Please find the Climate and Water Outlook, August – October 2019 here
In June Brett and I entered into a Binding Joint Venture with an over-arching MOU to Love, Cherish and ……..
There are some ‘Ground Rules’, notwithstanding both parties are happy with the agreement and terms thereof.