BANK OF AUSTRALIA
Owned managed by the Commonwealth Government of Australia
AUP – Australia United Platform submit the policy proposal to the Australian public that a Bank of Australia a Commonwealth Government owned bank be established with long-term finance and fair interest rates for primary industry and for the benefit of Australia and Australians.
We believe the best way to avoid any impact to the economy is to re-establish a government owned sovereign bank called Bank of Australia like the Commonwealth Development Bank of Australia and the Primary Industry Bank of Australia that existed all the way up to the early 1990’s.
A new government bank must be established that recognises that a farming business’s LVR (Loan to Value Ratio) is not what should determine if they should be wound up or not.
For example, take a farm of 1800ha that is worth $1.5 million.
In a good season with a 3 ton/ha yield, with a modest wheat price of $250 per ton, the farm could produce 5400 tones of wheat worth $1.3 million.
Subtracting costs of $300 thousand the farm would be left with around $1 million profit.
In one good year, a farmer can climb out of debt if they are allowed to trade out of their financial difficulty.
The aim of a new Bank of Australia a government bank should be to keep farmers on the land and farming their properties correctly as a good year will always come and to encourage agriculture development in Australia.
AUP – Australia United Platform would also call to immediately issue an Australia wide moratorium on farm foreclosures and property sales across all agricultural sectors and to appoint a Royal Commission into banks and their agents with the power to order compensation for the victims and imprison individuals who have engaged in illegal and unethical conduct.
A Commonwealth Government owned Bank of Australia would also incorporate re-investing into Australian infrastructure requirements.
© Australia United Platform 2012