Government funding cuts spell job losses and branch closure for the Central West Rural Financial Counselling Service
09-June-2011
Federal Member for Parkes Mark Coulton has offered his full support to the Central West Rural Financial Counselling Service as they announced they will be required to put off up to 12 staff members and close the Gilgandra office from July 1 this year, as a result of a funding shortfall of up to $800 000.
“This has been a difficult decision for the organisation. With over the 1190 clients the last thing the organisation needs is to further stretch their resources.”
The funding shortfall has been a result of the Federal Government reducing its funding for the next four years from $2.5 million to $1.7 million. Also, the Federal Government announced that all unspent money these organisations delivered at the end of a financial year, will be taken off them, preventing this money to be carried over.
“The Central West RFCS has worked hard to provide this surplus to allow for their financial security. This surplus has been delivered due to the efficiencies of the organisation and therefore the organisation should be able to spend this as they see appropriate.”
Mr Coulton will make representations to the Minister for Agriculture, Senator Joe Ludwig to urge that this decision be reversed and that RFCS are able to keep any unspent budget. Mr Coulton will also approach the Minister to seek that the Government increase the overall funding to the RFCS.
“The Rural Financial Counsellors provide a free and valuable service to farmers and agriculturally based small businesses, not only in times of crisis, but also when times are good seasonally. This includes succession planning assistance,” Mr Coulton said. “This is not considered a handout – it is an investment to keep farmers viable. The farmers more than pay back the Government through increased productivity.”
“We have seen how reliant this country is on agriculture after a fall in GDP due to the natural disasters that occurred this year. This is not the time to be pulling out the rug from this organisation and the people that depend on it.”
“It is important the Minister ensures this program keeps operating and that these organisations are not under resourced. I would ask that he reconsiders this decision immediately.”