Once again, I see that when the rural sector has business problems, it has its hand out for welfare from the government. Rural socialism (of the risks and losses) strikes again – of course when it comes to the good times, everyone wants to keep the profits and for the government to butt out.
The government today announced a $30m assistance package to those affected by the ban on live cattle exports to Indonesia. Those affected would be able to apply for an immediate cash injection of $5000 and make a further claim for up to $20,000 of financial assistance. No means test will apply to the package because it was "a hardship grant" for business, unlike the income subsidy arrangements announced previously.
I’m struggling to see why the cattle industry deserves special payments from government at a time like this. They blame the government for suspending exports to Indonesia, but the reality is that the problems that led to the ban seem to have largely been ones that the industry’s own marketing and export body, Meat and Livestock Australia (MLA) (owned by producers), either turned a blind eye to, or was incompetent in failing to detect over a period of some years. So if producers and others in the industry are suffering losses, it is MLA where they should be looking to for compensation, not taxpayers in general.
If I own a shop and my market collapses, especially if I am complicit in the causes of it, does the government come to my aid? Apart from providing standard Centrelink benefits, no. So why are cattle producers different? Why do their businesses deserve special treatment? Can’t they manage their own ups and downs in the course of business?
