The banking royal commission looked towards agriculture financing this week, with farmers sharing their experiences and ANZ admitting to breaches of the banking code of practice and ASIC's debt collection guidelines.
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Far South Coast Farmers’ Network coordinator Wayne Schaefer said the current investigation is a worthwhile exercise.
“Farmers have to look at long-term investments, sometimes over 10 years, and banks are looking at short-term profits and returns, so they don’t always match together because farming has many variables, like droughts,” Mr Shaefer said.
Farmers have to look at long-term investments, sometimes over 10 years, and banks are looking at short-term profits and returns...
- Farmers’ Network coordinator Wayne Schaefer
“Anything that is looking at good practice has to be an improvement.
“It’s difficult enough to be profitable.”
On the Monaro, former Bombala mayor Bob Stewart said a government policy involving a transport rebate would help farmers “get things across the line”.
He said one local farmer had questioned why a “big four” bank had closed its doors in the town, despite regularly registering multi-billion dollar profits.
Eden-Monaro MP Mike Kelly said the investigations should have been conducted sooner, and the royal commission is “finally giving the banks the wake-up call they need to deal with our farmers fairly”.
“I have heard countless complaints and anger from farmers at my stalls at country shows across our region and at my mobile offices about bank behaviour,” Dr Kelly said this week.
“It is disappointing that the government voted against the royal commission for so long, as it has finally provided farmers with the opportunity to be able to tell their stories about how the banks have negatively impacted their lives.
“My family have been farmers in this region for 170 years and I am well aware of the ups and downs that come with farming, particularly with the extreme weather being caused by climate change.”
He did however remain tight lipped on his thoughts on possible reform proposals stemming from the investigation.
“We will have to wait for recommendations from the royal commission regarding the admissions of code and debt collection guidelines,” he said.
The commission's hearings have taken place in Brisbane Magistrates Court.
Next week the commission moves to Darwin’s Supreme Court of the Northern Territory, where it will investigate the interaction between financial services entities and Indigenous Australians.
