Media Release

This morning KAP Member for Kennedy, Bob Katter has seconded the Federal Opposition’s motion for the immediate establishment of a Royal Commission into banking.

This comes the day after Mr Katter tabled a notice of his intention to present a Bill titled Banking Commission of Inquiry Bill 2016 – calling for a Royal Commission into Financial Institutions, which is seconded by fellow crossbencher Mr Andrew Wilkie MP, Member for Denison.

Mr Katter first called for a Royal Commission in May 2015. This was months prior to the Greens motion on the issue and almost a year prior to the ALP’s commitment.

After years of ordinary Australians reaching out to Mr Katter with stories of loss, intimidation and denial of justice, an Inquiry of the highest order has been called as the first Motion of the 45th Parliament

In the House, Mr Katter spoke about the high number of agricultural foreclosures in western Qld, “you can’t begin to imagine the pain and misery coming out of our little towns because of the banks.

“People have been meeting their interest and repayments and they are still sold up by the banks even if their contracts say they can’t.

“The banks performance has been appalling. They have inflated house prices out of the price range for ordinary people. They have lent money where it should never have been lent and again and again acted in complete breech of the contractual obligations

“If you tell me there’s not a massive crash coming here, then I say you’re a numbskull

“The banks have to accept some significant blame for the decline of the Australia’s economy,” said Mr Katter.

##ENDS##

Motion seconded by Mr Katter today:

Scandals in the banking and financial services industry have led to:

Retirees having their retirement savings gutted;

Families being rorted;

Small business owners losing everything;

Life insurance policy holders being denied justice; and

Agricultural assets being improperly foreclosed on;

Despite several inquiries, new powers, new resources, and a Financial Ombudsman Service, the rorts and the rip offs continue;

It is clear from the breadth and scope of the allegations that the problems in this industry go beyond any one bank or type of financial institution, or group of receivers;

Labor, Greens, crossbench, Liberal and National parliamentarians have supported a thorough investigation of the culture and practices within the financial services industry through a Royal Commission which is the only forum with the coercive powers and broad jurisdiction necessary to properly perform this investigation;

Therefore, calls on the Government to listen to the many victims of banking and financial scandals who are calling for the immediate establishment of a Royal Commission.

Background on rural debt crisis and Banking Royal Commission:

The Rural Financial Roundtable followed 12 months of pressure from Mr Katter on the Federal Government and Australian financial leaders, precipitated by a rally in North-West Qld in late 2011.

In August 2012, the then Treasurer agreed to the Roundtable following a Question without Notice in Parliament from Mr Katter.

In October 2012 the Rural Financial Roundtable met with Acting Prime Minister/Treasurer; Agriculture Minister and key stakeholders such as farmers from across Australia, food security and economic academic experts, realtors, financial institutions, financial counsellors etc.

In June 2013, Mr Katter introduced laws to establish within the Reserve Bank a rural reconstruction and development board to take over bad debt will ensure the sustainability of Australian agriculture and provide a lifeline to primary producers in the grip of the deepening rural debt crisis. The legislation is the result of the Rural Finance Roundtable and North West Cattlemen’s Crisis Summit.

In June 2013 a delegation from the Rural Finance Roundtable working group met with both sides of government to present the legislation.

Senator Madigan and Xenophon introduced legislation into the senate which mirrored Mr Katter’s original bill. The Senate Committee, with a majority ALP and LNP members refused to recommend a Reconstruction Board. Senator Madigan and Xenophon were committed to a Reconstruction Board approach.

December 2014 – Winton ‘Last Stand’ Crisis Summit into rural debt called by Rob Katter, State Member for Mount Isa and Chaired by media commentator Alan Jones– Charlie Phillott senior becomes the face of the rural debt crisis, having been removed from his property ‘Carisbrooke’ by ANZ Bank.

14 May 2015 Mr Katter calls for a Royal Commission into bank’s conduct.

September 2015 – Charters Towers Rural Debt meeting called in response to farmers cry for action.

September 2015 – Winton grazier Charlie Phillott given back his farm and ANZ Bank CEO Mike Smith apologies for its actions to Mr Phillott to Michael Usher on Channel 9’s 60 Minutes.

Recent History

February 2015 KAP identified the Reconstruction Board as a key priority to both the ALP and LNP in the QLD 2015 Hung Parliament Negotiations.

Robbie Katter, KAP State Member for Mount Isa, was appointed Chair of the Queensland Government’s Rural Debt and Drought taskforce. A series of public hearings were conducted across Queensland and the final report will be released in the near future.

Banking Royal Commission a priority in the 45th Parliament for Mr Katter