South Australia’s Lenswood Cold Stores Co-Operative has had a A$1.3m debt wiped by the state’s government.
The write-off, which involved loans approved under the state’s Loans to Cooperatives Scheme, comes as the government looks to support apple and pear growers in the Adelaide Hills who suffered severe storm damage to their crops for third year in succession prior to Christmas (2018).
“The state government recognises the hardship the apple and pear industry is facing after consecutive seasons impacted by hail and as a result has agreed to approve the A$1.3m debt waiver for Lenswood,” said South Australia’s minister for primary industries and regional development, Tim Whetstone.
“This will facilitate Lenswood having a better structured finance model which will help it maintain its day-to-day business.
“The industry has reiterated the need to support Lenswood and this government has taken action to waive the co-op’s loan and in turn support it to continue providing a valuable service to industry.”
The South Australian government has also appointed a dedicated family and business support programme mentor to connect affected Adelaide Hills growers with assistance services.
Apple and Pear Australia’shead of government relations & advocacy, Jeremy Griffith, said the move to abolish the debt was a “good start”, before renewing calls for a subsidised hail netting scheme, similar to one already in place in New South Wales.
“It is good to see the government supporting the apple and pear industry,” Griffith said. “Hopefully this signals the start of state government support for the implementation of a netting scheme that will help protect orchards throughout the state.”
