Government decision to expand RIC scheme funding to support SA algal bloom disaster criticised

The government's decision to expand the expand the Regional Investment Corporation’s (RIC) remit to support ecological issues - most pressingly the South Australian algal bloom - has been met with criticism.

Leader of the Nationals Party, David Little Proud, said the Prime Minister’s decision to use funding from the Regional Investment Corporation (RIC) scheme to pay for a new stream - called the Significant Ecological Event program - is another way of reducing the financial pool available for farmers experiencing drought.

“The Nationals are not against funding to fix the algae bloom problem in South Australia – in fact, we support it – but Labor should not be taking funding from the RIC,” Mr Littleproud said.

“The RIC is specifically for farmers including those experiencing drought hardship. It is not there as a source of funding for whenever Labor has a black hole of finances it needs to fill."

“There are no details on the Significant Ecological Event program, but despite that, the Prime Minister has said he will fund this program from the pool of funding within the RIC. This announcement inevitably will mean less support is available for farmers.”

Mr Littleproud added the government still hasn’t signed off on no-interest loans for drought or flood affected farmers, despite calls from The Nationals to do so, which is supported by farmers and industry organisations.

There is $4.057 billion left in the RIC pool of funding, and of that, $3.62 billion has been settled in loans, plus there are new applications in the pipeline after a busy start to the year with new drought loans.

“RIC predicted another $300 million in loans this financial year, in March 2025, but drought conditions are still happening, so it is likely to end up being more. Labor also hasn’t committed to funding beyond 1 July, 2026, for the RIC, or provided answers after the review.

“Our farmers should not be the ones who always miss out whenever there is an environmental disaster. Labor should fix the algae bloom, but not to the detriment of the agriculture industry.”

The National Farmers Federation has also commented on the new RIC product – saying the process leading up the announcement has been unclear.

“The RIC is a key plank in Australia’s drought policy,” the NFF said in a statement released yesterday.

“The Government can – and should – consider its role and products to ensure it remains fit for purpose. We also acknowledge the impacts current events in South Australia are having on producers and the seafood industry.”

“However, the process that has underpinned today’s announcement is unclear.”

“Just last month, the NFF and a number of members called on the Government to commit to extending the RIC’s loan capacity beyond June 2026 so it could continue its core purpose of supporting farm businesses to build resilience for drought and other events. As yet, no formal commitment has been made,” the statement continued.

“The Government has also not responded to the Independent Review of the Regional Investment Corporation Act 2018, which looked at the RIC’s role, scope and products, despite it being handed down more than a year ago.”

“The NFF worked in a considered manner with both the independent reviewer and the Government as the RIC was reviewed.”

The statement concluded saying the announcement of a new RIC product at a press conference, with little supporting detail and before a response to the independent review, challenges the need for stability in drought policy development. At the very least, it emphasises the need for further details to be provided.

The NFF said it looking forward to co-hosting the upcoming National Drought Forum next month saying it will be the perfect opportunity for the government to commit to the RIC and respond to the RIC review, to provide clarity to Australian producers.