Low-interest loans and retrospective bushfire grants should be included in the Brumby Government’s $10 million Bushfire Business Investment Fund, Shadow Minister for Bushfire Response and Leader of The Nationals Peter Ryan said today.
“Bushfire-ravaged businesses have struggled for more than a year since the fires and have been unable to access generous donations from the Bushfire Appeal Fund due to government tax laws, so today’s announcement of a stimulus package is welcome but overdue,” Mr Ryan said.
“There are serious concerns businesses will not be able to meet the eligibility criteria because government grants will only cover up to 50 per cent of the project capital costs.
“The practical reality for many businesses wiped out from the fire is that they simply do not have enough cash flow to get back on their feet again.
“Unfortunately many businesses desperately wanting to rebuild won’t be in a position to even apply for assistance through the Bushfire Business Investment Fund.”
Mr Ryan renewed the Victorian Liberal Nationals Coalition’s call for the Brumby Government to fund a $500,000 low-interest loan for bushfire-affected small businesses and primary producers.
“Today’s announcement further highlights the need for the government to increase its low-interest loan, as currently businesses can only access a $200,000 loan at a concessional rate of 3.2 per cent per annum for the first five years.”
“If increased loans were available in addition to the grants it would kickstart many businesses that have ceased to operate or have been badly affected and give them the best chance to start back up.”
Mr Ryan said it was also a concern that the Bushfire Business Investment Fund grants were not being offered retrospectively.
“It appears that those businesses which could no longer wait for government support and therefore independently scraped together the funds to re-establish their business are now being unfairly penalised,” Mr Ryan said.
“These businesses should be eligible for government grants so long as they can demonstrate the funding is going towards business costs and paying down bushfire-related liabilities.
“If the Brumby and Rudd Governments are serious about supporting businesses in bushfire-affected communities in Victoria then extended low-interest loan support and retrospective payments need to be part of the recovery package.”
Media contact: Sonia Heath (03) 9651 8526
