Bob Katter (Kennedy, Independent) Share this | Hansard source

My question is to the Minister for Agriculture, Fisheries and Forestry. Whilst the Australian people, particularly those 70,000 employed in the beef industry, appreciated yesterday’s stand by the government to protect Australia from mad cow disease, the government’s decision, however, to abolish EC drought funding could only be logical if agricultural development banks still existed. Since the Commonwealth Development Bank, the Commonwealth Bank, the Primary Industry Bank of Australia, the AIDC, the state banks, the QIDC and the Rural Bank of New South Wales have all been sold off, could the minister advise how our agriculturalists are expected to ride future trade and interest rate cycles and the perennial drought and flood cycles when there are now no financial mechanisms left to facilitate survival? The minister would be aware that Australia’s commercial banks in adverse circumstances invariably apply punitive interest rates, often exceeding 20 per cent. In light of this, can the minister advise how the government can justify farmers currently being charged 8.5 per cent whilst Reserve Bank interest rates are only 3.5 per cent, particularly when American and European competitors, who are enjoying a 42 per cent subsidy tariff assistance, are being charged only a 4.9 per cent interest rate?

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