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SA councils call for financial relief as rural debt mountain grows
SA councils call for financial relief as rural debt mountain grows

ABC News

time2 hours ago

  • Business
  • ABC News

SA councils call for financial relief as rural debt mountain grows

Crippling debt is growing by the day for drought-stricken South Australian farms with local councils pleading for state government intervention in the form of rate relief. Despite recent rains, the past three years of poor rain have seen farmers continue to borrow to cover their overheads. After 90 per cent of his crops failed last year, Appila farmer Andrew Zanker, in South Australia's Mid North, said he was reliant on loans to pay bills. "Everything that we pay [for bills] at the moment increases our debt month by month," he said. By the end of the year, Mr Zanker expects he will be overdrawn by hundreds of thousands of dollars. Dean Johnson, Kimba mayor and president of the Eyre Peninsula Local Government Association (EPLGA), said providing council hardship relief was difficult because local governments were already "battling" sustainability issues. "We want to support our primary producers as much as we can, but we've still got to provide the services that they need to keep their communities growing," he said. According to the Essential Services Commission of South Australia, the District Council of Tumby Bay and the Flinders Ranges Council are unsustainable or projected to remain unsustainable. Despite the findings, Flinders Ranges Council Mayor Ken Anderson said it was trying to alleviate as much financial pressure as possible. "Our focus is on trying to make savings in these hard times, across the board for everybody," he said. Mr Anderson said that, although the budget had not been finalised, his council was hoping to limit its rate rise to below 4 per cent. Both the EPLGA and Flinders Alliance of Councils have called on the state government to provide further and more targeted support to assist councils and primary producers. In a letter to Premier Peter Malinauskas, the Flinders Alliance called for a 12-month waiver of state government-imposed levies and taxes, such as the landscape levy and emergency services levy. The alliance has also requested that the state government subsidise rates for affected local governments. "For those councils with primary producers that can demonstrate financial hardship resulting in the inability to pay rates, the state government [should] 'spot' councils for the rates that cannot be paid," the letter read. The request echoed similar calls from the EPLGA that said in a letter to the government that councils were "bearing the cost" of certain hardship measures, such as deferring rate obligations. "These additional financial pressures further strain council resources, which are limited," it said. Streaky Bay farmer Dion Trezona said deferred or delayed payments still represented a bill for landholders and impacted councils' cash flow. "Especially for your prime production land holders, those rates should just be picked up by the state government just to give us a hand … and not have another bill come through your household," he said. Minister for Primary Industries Clare Scriven said the government was open to the idea, but it would mean one of the 20 different streams of grant funding available under the $73-million support package would have to be cut. "We developed that with primary producers, with peak bodies and with regional stakeholders," Ms Scriven said. "It was based on the feedback that we were hearing about what was needed by farmers and by regional communities. "It's not clear to me where anyone thinks that should be cut to be able to fund this, so I guess that's something that would need to be clarified."

South Australia shaken by jobs challenges and Premier Peter Malinauskas must be at top of his game
South Australia shaken by jobs challenges and Premier Peter Malinauskas must be at top of his game

News.com.au

time5 hours ago

  • Business
  • News.com.au

South Australia shaken by jobs challenges and Premier Peter Malinauskas must be at top of his game

South Australia's foundations are being shaken by global and natural forces, with tempestuous times ahead. In a tumultuous past fortnight, bedrocks of the state economy, employing thousands of people, have been plunged into doubt. Santos, the state's biggest company by far, is the target of an almost $30bn takeover bid by an Abu Dhabi raider, casting great uncertainty over the future of its Adelaide head office. The $368bn nuclear-powered submarine project centred on Adelaide is under threat from a 30-day United States review assessing its alignment with President Donald Trump's America First agenda. Despite some heartening rain, the drought continues to ravage the state's farms – SA primary industries generate $17.1bn annually. State debt was forecast to soar to $48.495bn in the state budget unveiled on June 5, after which the influential S & P Global Ratings warned big new spending ahead of next March's state election could trigger a credit rating downgrade. The purse strings will continue to be tested by the Whyalla steelworks and mine, as the budget set aside $384m in state and federal funds for a potential six-month extension of the state-induced administration. The Malinauskas government might have repeatedly ruled out an ownership stake in Whyalla's steelworks but a $2.4bn state/federal rescue package leaves both on the hook until a new owner is found. Public sector unions are restless. The SA Salaried Medical Officers Association on Thursday rejected a 10 per cent pay rise over three years and recommitted to walking off the job on Wednesday. These are extraordinary and foundational challenges, of varying degrees of concern, to the state economy and, most particularly, the potential for today's aspirational young South Australians to find well-paid, challenging jobs. The risk of Santos's head office leaving Adelaide should not be dismissed lightly. A foreign takeover, as my colleague Giuseppe Tauriello observed on Wednesday, would significantly diminish the last corporate heavyweight left standing in South Australia. Santos dwarfs other SA companies for jobs, investment, sponsorship and general corporate clout. It is four times the size of the state's second biggest firm, Argo Investments, and more than eight times the size of third-ranking Codan. Business success matters in a state where the population is overwhelmingly concentrated in the capital, and most jobs are underpinned by state and federal government spending of some form. Santos and partner Beach Energy in January officially opened a nation-leading Moomba carbon storage project, billed as kickstarting a $600bn industry and hailed by Premier Peter Malinauskas as a 'historic day for our state'. Mr Malinauskas responded to the Santos takeover bid by declaring his government's 'priority at all times is to ensure that South Australian jobs remain in South Australia, and to maintain Santos' headquarters in Adelaide'. This will be a test of his government's mettle and resolve, along with its legislative levers that include ministerial approval for a change in controlling interest of a petroleum resources licence holder, like Santos. Opposition Leader Vincent Tarzia, in his Tuesday budget reply speech, predictably painted a bleak picture of a state ravaged by debt, skyrocketing costs, unaffordable homes and a floundering health care system. Nine months out from the next state election, he vowed to deliver a 'debt management plan' to ensure this was at 'a sustainable level'. Mr Tarzia declared the state was 'at a crossroads'. He was right, although the future is always uncertain. Mr Malinauskas has a strong story to tell on economic confidence, a historically low jobless rate and the state's standing in the nation. But he will be justifiably wary of overconfidence ahead of the state election, even if his opponents are at a historically low ebb in their standing. The state is facing some serious challenges and the Premier will need to be at the top of his game.

Colorado drought update: Little change this week, but rain may be on the way
Colorado drought update: Little change this week, but rain may be on the way

CBS News

time11 hours ago

  • Climate
  • CBS News

Colorado drought update: Little change this week, but rain may be on the way

Colorado's latest drought update brings little overall change, according to the U.S. Drought Monitor released Thursday, June 19. CBS In northeastern Colorado, there was a small but positive shift: conditions have improved from moderate drought to abnormally dry. While it's not a complete recovery, it marks a slight step in the right direction. However, more serious drought concerns persist across western Colorado. Portions of Delta, Mesa, and Montrose counties remain locked in extreme drought. Soil moisture remains low, vegetation is drying out quickly, and the risk of wildfire is elevated in these areas. CBS This week, Colorado did receive some beneficial moisture, especially in parts of the Denver metro area and Eastern Plains. But due to the Drought Monitor's data cutoff on Tuesday morning, that rain isn't reflected in this week's analysis. Looking forward, we're tracking a system that could bring much-needed rain to parts of the state early next week.

Eritrea: Commemoration of World Drought and Desertification Day
Eritrea: Commemoration of World Drought and Desertification Day

Zawya

time16 hours ago

  • General
  • Zawya

Eritrea: Commemoration of World Drought and Desertification Day

World Drought and Desertification Day was commemorated at the national level at Embasoira Hotel, Asmara, on 17 June under the theme 'Restore the Land – Unlock the Opportunity.' The event, organized by the Ministry of Agriculture, was attended by experts from the Ministries of Agriculture and Land, Water and Environment, the Forestry and Wildlife Authority, Higher Education Institutions, stakeholders, national associations, and farmers. In his keynote address, Mr. Semere Amlesom, Director General of Agricultural Extension at the Ministry of Agriculture, highlighted the Eritrean Government's commitment to combating drought and desertification and emphasized the need for collective action to restore degraded land. He further noted that drought and desertification are among the main causes of biodiversity loss, poverty, forced migration, and conflict, and that restoring the land is essential to addressing these issues and reversing their consequences. The event featured presentations on various topics, including Eritrea's commitment and experience in combating drought, land degradation, and desertification; land use change and its impact on poverty and livelihoods; conservation and sustainable land-use management practices; agroforestry systems for restoring land; environmental impact assessments of agricultural farms; and the role of date palms in restoring degraded land, among other relevant subjects. The participants, emphasizing the importance of continued efforts to address drought and desertification, called on stakeholders to work in partnership to achieve the intended goals. As the world continues to grapple with the challenges of climate change, it is essential to accelerate the implementation of sustainable land-use practices and conservation measures. Distributed by APO Group on behalf of Ministry of Information, Eritrea.

Heatwave latest hit to farmers struggling with increasingly extreme weather
Heatwave latest hit to farmers struggling with increasingly extreme weather

Yahoo

time21 hours ago

  • Climate
  • Yahoo

Heatwave latest hit to farmers struggling with increasingly extreme weather

The heatwave is piling more pressure on farmers who were already struggling to produce food in the face of the very dry conditions. Much of the country is sweltering in a heatwave, with temperatures set to climb above 30C in many places over the weekend and an 'amber' heat-health alert issued warning of 'significant' impacts for health services. For farmers, the heatwave threatens to worsen the outlook for food production already struggling off the back of a record-hot and the driest spring in decades that has left north west England and Yorkshire in drought and other regions in prolonged dry conditions. The hot, dry spring came after a record wet spell which left many farmers struggling to sow crops last autumn, and led to warnings earlier this month of potentially the worst harvest on record for major arable crops if conditions did not improve. Farmers say the heatwave, following the dry spring, is putting 'real pressure' on farms across the country, and warn it will affect not just this year's harvest, but food availability into next year. They are warning of the need for investment in more resilient water supplies to help them cope with the more unpredictable extremes that climate change is bringing. National Farmers' Union (NFU) vice-president Rachel Hallos said: 'As the Met Office forecasts a heatwave this weekend, it's yet another reminder of the increasingly unpredictable and extreme weather our farmers and growers are facing. 'After warnings of thunderstorms at the start of the month, this switch to hot, dry weather reinforces just how urgently we need long-term planning and investment in water resilience. 'Drought puts immense pressure on crops, livestock and grass growth and threatens the availability of homegrown fruit and veg. 'Investing in water infrastructure – from on-farm rainwater harvesting to more flexible abstraction rules – will help farmers manage these extremes, grow more fresh produce here in the UK and reduce reliance on imports from other water scarce countries.' Martin Lines, chief executive of the Nature Friendly Farming Network (NFFN), who farms in Cambridgeshire, said: 'The ongoing heatwave, following an already dry spring, is putting real pressure on farms across the country. 'Crops are struggling, harvests are coming earlier and lighter, and many farmers are seeing yields fall without any meaningful uplift in prices to offset the loss. 'What's worrying is that this doesn't just hit the current harvest – it will affect food availability into next year too.' He warned most farms do not have infrastructure to store water, and without rainfall they do not have reserves to draw on, and he called for long-term support for water storage and better planning across river catchments. He also said nature-friendly farming plays a 'vital role' in building resilience to weather extremes. 'Practices like improving soil health, using cover crops, and integrating habitats into fields are helping farmers stay productive while cutting back on inputs. 'More support would help farms go further – it's practical, makes business sense, and helps protect the land they rely on,' he said. Earlier this week, the Environment Agency warned England faces 'huge' water shortages of billions of litres a day by the middle of the century to provide for public water supplies as well as for areas such as food and energy production, without action to cut leaks, curb use and build new infrastructure.

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