'Up the creek in a barb wire canoe'

14 Apr, 2015 02:00 PM
Comments
8
 
MP Bob Katter is furious with rural baking practices.
We’d be happy to paddle our own canoe, I just wish we weren’t up the creek in a barb wire canoe
MP Bob Katter is furious with rural baking practices.

FUELLED by a “a firestorm of anger and resentment” over farm foreclosures, MP Bob Katter today said farmers will take banks to the High Court in order to win the battle against intimidatory banking practices.

The 60 Minutes Sunday program “Farmers Fight Back” depicted part of the foreclosure process on Bruce Dixon's Cuballing farm in Western Australia’s southern wheatbelt last month along with the foreclosure of Rodney Culleton, Williams. It focused on ongoing criticism of changed loan conditions stemming from the Australia and New Zealand Banking Group (ANZ) takeover of the former Landmark rural loans book.

Mr Katter said the techniques used to get farmers to “voluntarily” give up their properties were extreme and unnecessary.

“Banks do not just foreclose, they’re using duress and even misrepresentation to get people to agree to terms without putting them into receivership,” he said.

“The veil of secrecy which surrounds their dealings with farmers when taken away will reveal, in my opinion, gross obscenities.

“We are determined that it will be illegal to get people to sign contracts of confidentiality using inducement and duress. We will see them (the banks) all the way to the High Court”.

ARDB a missed opportunity

The implementation of the Australian Reconstruction and Development Board (ARDB) – supported by Mr Katter - was knocked back by a federal Senate inquiry earlier this month.

The report tabled by a Senate economics legislation committee inquiry into the escalating rural debt crisis, instigated in 2013 by independent Senators Nick Xenophon and John Madigan, recommended the Senate not pass the ARDB Bill.

However, it contained a strong dissent from Senator Xenophon accusing major bank lenders of failing to recognise the severity of the rural debt crisis.

“Whether the banking industry wants to admit it or not, Australia is in the midst of a rural financial crisis,” Senators Xenophon said.

“More and more farmers are hitting the wall and there has not been a proper response from the government in relation to this.”

Mr Katter, who had pushed a similar Bill in the Lower House to make the ARDB a subsidiary of the Reserve Bank of Australia, said he was tired of the talk-fest and hypocrisy on rural debt.

“It is a waste of time having white papers and green papers into agricultural debt, all that politicians are doing is making themselves look like they care,” he said.

“I defy anyone to point out to me a white paper that has produced a positive result in the last 20 years and they have cost tens of millions of dollars.”

Mr Katter wants more transparency in banking, and asked the Treasurer to require all banks and lending authorities to provide to Parliament the complete wording of confidentiality clauses inserted into lending documentation in the last two years.

“We’re not asking for a bailout, in fact the last time this was done in Queensland on a major scale in sugar, the government made a profit,” he said.

“But this is the first time in Australian history where a crisis of this size has arisen without the remotest effort to put in place an ARDB.

“I don’t mind free market fundamentalists the LNP and ALP saying paddle your own canoe - we’d be happy to paddle our own canoe, I just wish we weren’t up the creek in a barb wire canoe,” Mr Katter said.

Drought fuelling debt crisis

The one-in-100-year drought gripping a broad swathe of eastern Australia has exacerbated the rural debt situation, with ANZ promising a 12-month moratorium on farm repossessions in northern and western Queensland and North West NSW before Christmas.

"We are acutely aware of the impact this is having on farmers, their families and on farming communities," chief executive officer for ANZ Australia, Philip Chronican said.

Queensland farm group AgForce said primary producers across the state continued to suffer from the worst drought in a generation, and urged the federal government to rethink its drought assistance policy and recognise that “existing frameworks miss the mark”.

At a meeting with Agriculture Minister Barnaby Joyce yesterday, AgForce chief executive officer Charles Burke, along with representatives of the National Farmers' Federation and NSW Farmers, reiterated the need for drought policy reform. The lobbyists presented Mr Joyce with a set of urgent recommendations aimed at addressing the barriers to those in genuine need of federal assistance.

"Queensland producers are operating under an unprecedented set of conditions that are well beyond their control or capacity to prepare for and need further effective assistance," Mr Burke said.

"These recommendations are not new and many have been raised previously with the Minister, his office and the Department when existing drought schemes were first introduced and again last year."

Senator Madigan said while natural disasters had contributed to the debt crisis, successive governments had failed to address the issue.

“Enough is enough,” he said. “No other country in the world ignores their farmers and ignores their rural communities like Australia does and it’s about time governments of all persuasions woke up to what is happening.

“There is a bushfire raging in rural and regional Australia and these people aren’t even looking at the fire - they’re sitting in the lounge chair ... thinking everything’s going to be okay.

“Well, it’s not going to be okay. Let’s stop the fire before it burns anyone else.”

Left in the lurch

The 60 Minutes report claimed farmers were “alone in battling this national crisis because federal and State governments have completely ignored them”, with some taking matters into their own hands.

“Some refusing to leave; others even forcing their way back onto their properties,” reporter Michael Usher said.

Bank tactics pit farmer against farmer - "and it’s getting ugly,” he said.

“There’s a bushfire raging across rural Australia; a firestorm of anger and resentment that’s erupted into open warfare.”

ANZ issued a statement after the broadcast, saying in part:

"Taking possession of a farm is always the last option after all other avenues, including farm debt mediation, have been exhausted and we work with farming customers over several years to try and resolve their financial situation.

"We recognise there are farmers doing it tough in other parts of Australia and we will do all we can to work with them to get them back on their feet.

"ANZ has more than 20,000 farming customers throughout the country and we’re committed to supporting the sector through both the good and tough times."

The bank also noted non-viable businesses had a significant impact on local communities with many smaller suppliers remaining unpaid, while the sale of these businesses injected capital back into the local economy.

Mr Katter said at the ‘Last Stand’ December meeting in Winton, Queensland, farmers overwhelmingly rejected concessional loans as they don’t want more debt, and the government's policy fostered negative patterns.

"So far all this government has done for farmers is offer another $100 million in concessional loans."

He said that unless the Agriculture Minister delivered "action and not words, he knows as well as everyone else in the industry that there will be no Australian farmers left".

- with Colin Bettles

FarmOnline
Date: Newest first | Oldest first

READER COMMENTS

Bushfire Blonde
14/04/2015 6:45:46 PM

The Qld Government sold the QIDC for a profit after it had done a hell of a lot of good for the Qld economy so pray tell me Federal Senators what is wrong with Canberra setting up an ARBD? Is it because the trendy Liberals don't want to upset their banker mates who have been charging too much Interest for far too long and hence ruining a LOT of good solid businesses run by little Aussie battlers?
upsidedown
14/04/2015 10:44:05 PM

this government will go down as the cruellest and most insensitive to the unfolding national crisis in agricultural communities throughout australia since federation, farmers are relying on charities to feed their starving stock and themselves, no wonder the late Malcolm Fraser resigned from the liberal party, as for the national party, they stopped representing the interests of rural australia thirty years ago
Bushfire Blonde
15/04/2015 7:44:19 AM

Yes USD, shame on the whole lot of them - it is just as well that we have Alan Jones, Nic, Bob and John batting for us - Jonesy is not backward in bowling up a few bouncers - listen to him online at 2GB.
RWH
15/04/2015 9:12:29 AM

More huff and puff out of Mr Katter, the majority of farmers are not complaining, interest rates are at historical lows. You borrow money, you have to pay it back - whether it is from a Government bank or a Private bank - no different. Just like all the rest of us in the economy, foreclosure rates in small business are likely running at 4 or 5 times that of the farm sector, and most don't own the assets (ie land) that generate the income. While your at it, bring back all the government controls and kill the free market!
Detail Please
15/04/2015 10:34:09 AM

Could a reporter please ask Katter et al what the actually amount of subsidy would be to each individual farmer so that they won't go broke. Also how many would be eligible. By subsidy I mean direct payments, concessional loans or debt retirements. Lots of slogans that make people in the city feel sorry for people's misfortune. I think reality may set in when actual figures are outlined. The Land - please ask some questions.
had_enough
15/04/2015 9:36:18 PM

@RWH-TROLL! Farmers borrow from one bank, then the bank on-sells to another bank, which devalues the farmers land, then forecloses! How is that fair? @Detail Please-TROLL - Details please? Stop making the farmer out to be the bad guy. Our farmers are the backbone of this country. The govt makes laws which benefit the banks! What do YOU contribute to the economy? What is your profession? Who do you work for? Stop bagging those who want to CONTRIBUTE. You contribute NOTHING but baseless & hollow arguments.
Kerri Pitts
16/04/2015 3:34:52 PM

The problem that has occurred is that a farmer comes into a 'lender' and has a bank valuation… rural clients can only borrow 60% of valuation, unlike residential customers who can borrow 85% or 90% of the valuation. Then the lender, or another entity that they have sold the mortgage onto, undertakes another valuation, and surprise the valuation is substantially lower, which means that it no longer meets its lending criteria, because the valuation means that the loan is 70% to 80% of valuation. The farmer in question has kept paying the repayments in full and on-time, but foreclosure follows.
Anna Keogh
21/04/2015 8:36:36 AM

How about we let the farmers share their stories, of massive interest rate hikes, 18%, on technical defaults, clauses written into contracts that are impossible to achieve. Good on you Katter, good to see you haven't been emasculated like the rest of our politicians.

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 

COMMENTS

light grey arrow
I'm one of the people who want marijuana to be legalized, some city have been approved it but
light grey arrow
#blueysmegacarshowandcruise2019 10 years on Daniels Ute will be apart of another massive cause.
light grey arrow
Australia's live animal trade is nothing but a blood stained industry that suits those who