Media Release

KAP Leader and Federal Member for Kennedy Bob Katter today joined with Senators John Madigan and Nick Xenophon in a call for an Australian Reconstruction and Development Board (“ARDB”) to address crippling levels of farm debt in Australia.

A Public Senate Hearing in Canberra today heard from QUT School of Economics and Finance Senior Lecturer, Dr Mark McGovern, Economist Ben Rees as well as Rowell Walton of the Rural Finance Roundtable Working Group, all of whom joined the calls for a Government led ARDB.

Mr Katter said that the situation had reached crisis point.

“I don’t use the “S” word anymore. In one fortnight alone before Christmas there were 3 people who did away with themselves, all associated with the cattle industry.

“And it seems like no one cares. The Government has made some loans at a profit – 1.5% for themselves – and the terms and conditions are so ridiculous that no one can get them.

“That same day I was speaking to 3 people who had debts of $50 million, so what is $100 million actually going to do?

“At the moment the Government are really condemning the vast bulk of the services of Australia to be owned by foreigners, and you’ll be living in a land where you’ll effectively be serfs working for foreigners. And that’s just as true for manufacturing as it is for farming.”

Mr Katter said that the simple answer was for an ARDB and that there was precedent for the move.

“For all of Australian history, Governments have set up Reconstruction Boards and in their entire history not one single Reconstruction Board has lost money.”

In 2013 Mr Katter introduced the Reserve Bank Amendment (Australian Reconstruction and Development Board) Bill 2013. A similar Bill was introduced into the Senate and is being considered by the current Senate Hearing.

The laws are contingent on commercial banks writing off up to half of existing debt (for which half that value becomes a tax concession), enabling the ARDB to buy the bad debt at the discounted value and offer farmers refinancing at interest rates lower than commercial lenders.

Mr Katter said he congratulated all of the persons who’d put forward submissions and attended the Hearing to show their support for the agricultural industry in Australia.

“In particular I praise my very good and longtime friend, Rowell Walton, previously one of the top grain producers in Australia”.