PRESS STATEMENT
GOVERN11NTS APPROVE LOANS TO FLOODED BUSINESSES
JOINT STATrEMENT BY THE ACTING PRIME MINISTER,
THlE lION. L. 11. BARNARD, AND QUEENSLAND
PREMTER, Hri~ lON. J. BJEL1M-E-PETERSEN . L. A.
Thc Australian Government has agreed to a proposal
from the Queensland Government for the provision of loan
finance to business firms suffering physical loss as a direct
result of the recent floods.
2. This measure has been accepted as eligible under
the arrangement for reimbursement of State expenditure in
excess of $ 2 million annually.
3. The following are broad details of the scheme of
flood relief for businesses.
4. Amount and Terms : Assistance will be by way of
loan tip to a maximum of $ 25,000 for any one applicant. The
loan will be for 3-5 years with interest at the rate of
Interest for the first year will accrue and be
payable 12 months after the date of the loan. The loan will
be repayable in equal six-monthly instalments of principal
and interest over the remainder of the loan period.
6. Each application will be judged on its merits as
to need, amount of loan and subsequent viability.
7. Eligibility : Applications will be considered
from sole owners, partnerships, firms and private companies.
Public companies do not qualify. eo e12
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8. Applicants must have sustaincd. substantial damage
by flooding to building% plant, equipment and stock or have
had their financial liquidity severely affected.
9. To be eligible for assistance, an applicant must
be unable to effect repairs or replacements and get back into
viable operations from his own resources or from normal
financial sources. The applicant must be able to demonstrate that
with. this assistance he has the prospects of re-establishing
his operations on a viable basis.
11. Mr Barnard and Mr Bjelke-Petersen said it was
agreed that the extent of assistance would be based on a
careful assessment of the applicant's financial position,
including any insurance recoveries. Applications would be
received from tomorrow ( Monday) by the State Department of
Commercial and Industrial Development. Applications would
be processed by a committee under the chairmanship of Sir
David Muir.)
12' 0 This scheme of assistance is in-addition to
measures previously accepted by the Australian Government
as eligible under the arrangement for reimbursement of State
expenditure in excess of $ 2 million annually. These
include: Relief of personal hardship and distress.
Grant or loan assistance to owners of dwellings
damaged or destroyed by floods. 0 ./ 3