ACCESS TO FINANCE IS A CRITICAL WATER REFORM ISSUE WHICH MUST BE ADDRESSED AT COAG MEETING Sydney, 11 August, 2003: The Australian Bankers’ Association (ABA) was pleased to see that the participants at the Agricultural Finance Forum last week agreed that water reform was the number one issue impacting on farmers’ ability to access finance in the future. The ABA has been concerned at the limited approach by some State Governments, to date, to address the impact of water reform on access to long-term finance for the agricultural sector. The ABA agrees with the Chair of the Agricultural Farm Finance Forum, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, Senator Judith Troeth, that the “’bankability’ of water access entitlements will become an important determinant of future investment in Australian farming.” David Bell, Chief Executive of the ABA, said it is critical that the Council of Australian Governments (COAG) meeting later this month considers issues relating to water reform and that it agrees to address access to finance for rural communities. “Water reform will affect the terms and conditions on which farmers will be able to access mortgage finance,” Mr Bell said. “Farmers need to be able to access finance at its lowest commercial cost so that they are able to viably invest in long-term sustainable best practice water use.” “Water access entitlements need to be able to be mortgaged and have similar status as freehold land when used as collateral for the purpose of accessing long-term secured finance.” For further information: Heather Wellard ABA Public Relations Phone: 02 8298 0411 Mobile: 0409 830 439 ENDS