Media Release

KAP Leader and Federal Member for Kennedy has responded to the ALP’s call yesterday for a Royal Commission into misconduct in the banking and finance sector, saying this should have happened a year ago when he called for a Royal Commission on 15 May 2015: http://www.bobkatter.com.au/module/latestNews/view/535/katter-calls-for-royal-commission-into-bank-lending-practices/media-releases

Mr Katter has a proven track record in fighting the unethical banking practices on behalf of his constituents, in particular related to the rural debt crisis gripping regional Australia, following the issue being brought to his attention a rally in North-West Qld in late 2011.

For the past five years a number of cases have been raised with Mr Katter, with the most renowned being Winton grazier Charlie Phillott, 81, who was kicked off his property by ANZ Bank, but fought back and won.

Mr Katter supported him in his fight as he has many others who’ve found themselves in the same positon and reached out for help from Mr Katter’s office.

Having been inundated with stories like Charlie’s, on 15 May last year Mr Katter called for a Royal Commission into Australia’s banking and finance sector and his views haven’t changed:

“We absolutely should have a Royal Commission into the finance sector. The time has come not for a Parliamentary Inquiry, but for a public inquiry.”

“In the United States, ‘non-recourse’ lending exists. When you can’t make your repayments and the banks sell up the house, the banks can only get what the house is sold for. The banks take the loss of any shortfall.”

“In Australia, the customer takes the shortfall.”

Mr Katter is sick of the LNP’s Government’s inaction on this issue:

“And the Government is running around congratulating itself that their banking institutions are solid, yeah they are solid because in Australia because whenever the banks stuff up, the poor bloody mortgagee gets flogged. In the United States, the banks share the flogging. As they should.”

It is understood Mr Katter’s call for a Royal Commission was the first in Australia, two months prior to the Greens motion on the issue and almost a year prior to the ALP’s promises.

Background

· 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 Phillot 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 - QLD

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

The Reconstruction Board is now being proposed to be introduced in Queensland and within the already existing Queensland Rural Adjustment Authority (QRAA).

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.