Hawke's Bay fruit grower Paul Paynter has criticised the government's loan scheme for cyclone-affected growers and farmers. He claims it helps the banks more than those whose livelihoods were destroyed. The NZ government will support banks to grant lower-interest loans of up to $10 million over five years, and carry 80 percent of the credit risk. If the bank will not lend, the government will lend up to $4 million, deferring interest for 10 years - but only if the land is at least 30 percent damaged.
Hawke's Bay Growers had previously asked for $750 million to cover costs created by Cyclone Gabrielle. Paynter, owner of The Yummy Fruit Company, said the businesses with the best chance of survival are those whose damage is between 20 and 30 percent. His business lost about 30 percent of its growing area due to Gabrielle.
In a recent interview, he said: "This scheme is very good about making the taxpayers give the banks some security and a guarantee of their loans, and I think the banks should be commended for being so very clever to get this across the line. But it doesn't actually help the people rebuild their houses or reestablish their income."
Source: rnz.co.nz
