Media Release

KAP Federal Leader and Member for Kennedy Bob Katter this week made a submission to the Economics Legislation Committee on the Reserve Bank Amendment (Australian Reconstruction and Development Board) Bill 2013, which will take over bad debts and ensure the sustainability of Australian agriculture.

The aim of the bill, initially introduced by Mr Katter last year is to create an entity tasked with examining, reconstructing and improving the financial status of the Australian agricultural sector and its associated industries and infrastructures.

“The Bill will establish an Australian Reconstruction and Development Board under the Reserve Bank of Australia.

“The Reserve Bank already has the necessary regulatory framework, powers and relevant duties to be able to constitute the ARDB as a third board within the Reserve Bank of Australia,” Mr Katter said.

His submission relied on the past success of Queensland Reconstruction Board and Agricultural Bank before it was privatised plus various case studies. The submission warned that “without an ARDB Australia risks losing our cattle industry, our dairy’s herd, our wheat industry and our sugar industry”.

“The historical evidence on an ARDB consistently indicates that the Government will make money, not lose it, through repayments when profitability is returned by the tax revenue that will be earned when profitability returns to a business.

“Open the door to survival – the ARDB; or open the door to an immoral land occupation and the death of some of this country’s finest and most contributing Australians – our farming and rural people,” Mr Katter said.

The current legislation in the Upper House has been introduced by Senators John Madigan and Nick Xenophon and is based on a bill introduced by Mr Katter last year.

In 2011 Mr Katter began pressuring for former Federal government to form a rural financial round table. In August 2012 the Treasurer agreed to this following a Question Without Notice in Parliament from Mr Katter and consequently a meeting was held with agriculturalists, farmers, senior representatives from the major banks, accountants, the then Treasurer and then Minister for Agriculture.

“Much of rural Australia is struggling under an insurmountable debt burden. Reliable sources continue to quote that between seven and 20 per cent of farmers are facing foreclosures within two years,” Mr Katter said in August 2012 about the financial crisis facing our primary industries.

To ensure the impetus did not wane, in June 2013 Mr Katter introduced laws to establish within the Reserve Bank a rural reconstruction and development board which would solidify long-term sustainability in Australia agriculture and protect hundreds of years of knowledge built by our nation’s food-producing men and women.

Although Senate submissions have official closed, late submissions may be accepted with permission from the secretary. Please contact the senate enquiry secretary on 02 6277 3540.