Farming concerns over Victorian Budget

AGRICULTURE figures have been left underwhelmed by the Victorian Budget, with claims it has pushed the wider industry up against the wall.

The regional development budget was halved from $211.5 million to $106.6 million in the budget.

Roads were also set to suffer – maintenance funding was reduced by $260 million.

The government claimed in the budget its $770 million road asset management spend for 2023-24 was 35 per cent higher than the annual average from the previous decade.

At least $6.6 billion was to be spent on road asset management over the next decade.

Funding for agriculture was given a 34 per cent cut compared to last year’s budget, and Agriculture Victoria could be set for more job cuts and service reductions with Premier Daniel Andrews forecasting a further 4000 public service jobs to go.

VFF president Emma Germano said regional Victorians were being made to pay as a consequence of the government’s decisions.

“(While Treasurer Tim Pallas’) speech talked a lot about paying down debt, it failed to mention the debt owed to regional communities who kept Victoria from recession in the middle of the COVID-19 pandemic,” Ms Germano said.

“Mr Pallas also failed to mention that debt levels for the state of Victoria will continue to escalate over the next five years.

“Regional Victoria contributes almost 15 per cent to the state’s economy and is the home of about a quarter of all Victorians, but has been left reeling with only five per cent investment in the State Budget.”

The government said the budget had $5 billion in measures for rural and regional Victoria.

Ms Germano said the future years of inequity in infrastructure spending would increase the cost of doing business for farmers and food prices for consumers.

“Whilst major infrastructure projects in Melbourne have blown out by over $500 million, regional communities are left to pick up crumbs off the infrastructure table,” she said.

“(An extra $2.8 billion for the) 10-year road maintenance program isn’t long term funding certainty, it is playing make-believe. It does nothing to give road asset managers the certainty needed to plan works and line up contractors to fix our roads now.

“Failure to fix the state’s rotten roads will just mean more pain for farmers, supply chains and regional Victorians.”

Ms Germano said she was also concerned important government responsibilities such as protecting agriculture from biosecurity threats will be put at risk by reduced funding to Agriculture Victoria.

“Despite some short-term investment for biosecurity funding, the large reduction to the agriculture portfolio’s budget will lump added strain on the biosecurity system. Victorians just can’t afford for this strain to reach breaking point.”

Dried Fruits Australia chair and dried grape grower Mark King said his organisation backed the VFF’s stance.

Mr King said rising costs, on the back of a challenging growing season, meant the horticulture sector needed support now more than ever.

“While under increasing pressure from rising costs and weather-related challenges in growing, the industry needs all the support it can get in terms of increasing efficiency and productivity along the supply chain,” he said.

“This means making sure our roads are in acceptable condition and ensuring funding is maintained to adequately protect our industry from biosecurity threats.”

The government said its biosecurity spend would include $17.5 million for skills training and equipment to prepare for a rapid response to any emergency animal disease detection.

There was $3 million earmarked for farm safety programs, $10 million for the Distillery Door program, $5 million for the Wine to the World program and $5 million in hospitality scholarships.

Minister for Agriculture Gayle Tierney said the government “was backing our world-class agriculture industry and the Victorians who rely on it, helping farmers access new markets at home and overseas and future-proofing the sector against pests and diseases”.

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