THE future of the Rural Financial Counselling Service is secure until the end of the year.
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A question mark was hanging over the service after a report by the National Rural Advisory Council commissioned last year recommended the service’s funding be cut by 20 per cent and its services be centralised.
Federal Agriculture Minister Barnaby Joyce announced last week that funding was secure until December 31 and said it was important the program continue.
“The RFCS provides a critical service to our farming communities, especially during tough times like periods of drought,” he said.
“We have listened to feedback from current RFCS service providers and other stakeholders on the NRAC review and it’s very clear there are different requirements for this service across regional Australia.
“The Coalition government therefore does not support a mandated single service provider model for each state.
"I felt it was particularly important that the different needs of different regions continue to be reflected in the future programme.”
Mr Joyce hinted at further cuts to the service's funding after the December 31 deadline.
"We will also offer the 14 current service providers an extension of their current contracts to 31 December 2015 to allow the government time to implement some of the changes recommended by NRAC in a considered manner ahead of the next funding round," he said.
North Central RFCS executive officer Clare de Kok said the decision meant the organisation's core funding had been assured.
"It's going to mean a slight reduction in funding for us," she said.
"We will have to have a look at how our programs can be best implemented."
We will have to have a look at how our programs can be best implemented.
- Clare de Kok
The NRAC report which recommended funding be cut stated that 1654 Victorians used RFCS in the 2013-2014 financial year.
The report said RFCS had suffered from "mission creep" over the years.
“This has seen the types and level of assistance provided by some service providers, generally when seasonal conditions are good, become more in-depth, time consuming, less related to issues of hardship and, in some cases, provided to clients not experiencing financial hardship.
“In addition to excess capacity, NRAC has made a series of recommendations that should result in considerable gains in service efficiency.”
Small forestry businesses have now also have access to the RFCS.
They will be included as part of the service under the next funding round on the same basis as other rural businesses.
