Royal commissioner makes more time to ‘properly’ investigate banks’ treatment of farmers
THE financial services royal commission is setting aside more time to probe the big banks’ treatment of farmers as pressure mounts over the tight deadlines for the inquiry.
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THE financial services royal commission is setting aside more time to probe the big banks’ treatment of farmers as pressure mounts over the tight deadlines for the inquiry.
Commissioner Kenneth Hayne, QC, has moved to drop natural disaster insurance from the topics to be scrutinised in the current round of hearings, to devote more time to farm finance.
Mr Hayne revealed on Tuesday that he had decided to address disaster insurance during a round of hearings — on general insurance issues — scheduled for September.
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“It is better that I pull the pin now and shift natural disaster over into September to give us enough time to deal properly with farming issues,” he said, speaking at the fourth round of hearings underway in Brisbane.
The commission will now spend this week looking entirely at farm finance — a theme that will spill into next week, before it examines financial issues affecting indigenous Australians as this round of hearings moves to Darwin.
Mr Hayne is working to a tight timetable, with the federal government expecting an interim report by September 30 and his final report by February 1.
In another day of drama on Tuesday, maverick federal MP Bob Katter interjected just before the lunch break, demanding to know how the commission would protect farmers “in the future”.
Mr Hayne told Mr Katter he would have to wait for his report. “I understand your concerns. You are not the only one who is concerned, Mr Katter,” he said.
“There are a lot of people out there concerned — I understand and appreciate that.”
Earlier in the day, counsel assisting the commission Rowena Orr, QC, tabled confidential documents on the treatment of a third and fourth-generation farming family in western Victoria by ANZ.
The documents revealed the bank pressured Arthur and Rhonda Cheesman, their son Reuben and his wife Katrina to offload all their assets as they struggled to make loan payments.
Ms Orr presented documents to ANZ head of lending services Benjamin Steinberg showing the bank wanted all the property sold, including all houses and sheds, despite the effect it would have on the family.
Mr Steinberg said the bank should have shown more empathy. “I find it sad that that happened. I’m struggling with it,” he said.
“If this was done today it would be done … it would be dealt with in a different way.” It was also revealed ANZ sent a default notice to a struggling West Australian couple a few weeks after the husband suffered a heart attack, before later giving them six months to repay their entire debt.
The commission also looked at the case of grazier Charlie Phillott and his son, who took their story to media after being forced off their Carisbrooke Station in central western Queensland. ANZ later apologised and returned control of the farm to the family.
Ms Orr on Monday showed how ANZ thought it could become the nation’s second biggest agribusiness lender through its $2.2 billion acquisition of the Landmark loan book in 2010.
Mr Steinberg on Tuesday said the bank did not work constructively with Charles Phillott Jr after the Landmark takeover to solve his financial difficulties.
“We issued a notice on our customer effectively terminating the facilities and requesting repayment of them,” he said.
Asked by Mr Hayne if the bank acted in an ethical manner, Mr Steinberg said: “I think’s it’s fair to say we didn’t.”
The response was met with applause from members of the public watching the proceedings outside the hearing room.
WITH AAP
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