FARM foreclosures, branch closures, outrageous ATM fees – is it any surprise banks in the bush are about as popular as a root canal?
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The ANZ’s decision this week to place a 12-month moratorium on forced farm sales in areas crippled by drought will at least restore a modicum of faith in lending institutions.
The move, which came amid mounting political and community pressure, will act as a critical circuit breaker for many landholders in North West NSW.
As some areas enter a fourth wretched year of drought, and with farmers buffeted by rising costs of production, depressed markets and plummeting property prices, the sense of relief knowing land won’t be claimed back by banks in the short term will be palpable.
The ink had barely dried on the new agreement before the free marketeers began banging on about governments and banks “propping up” unviable businesses.
And while it may be true industry downturns will make some farms unviable, it’s equally true that drought is a natural disaster, and should be treated as such.
Others are accusing the ANZ of using the issue as a publicity stunt.
Banks are massive, money-gobbling corporations, and corporations, by their very nature, rarely have a soul.
But whether it was compassion or opportunism that sparked the decision, the important thing is it was made.
Agriculture Minister Barnaby Joyce also deserves credit for “shirt-fronting” banks on the issue.
Mr Joyce has faced his fair share of criticism locally during his first term in the lower house, but his performance as agriculture minister has been commendable.
When the Coalition came to power, drought policy between the federal and state governments had lapsed.
In little over a year, Mr Joyce has travelled the length and breadth of the nation, unlocked more than
$700 million in drought concessional loans and put more than 4000 extra families on farm household assistance.
And he’s managed to do the near-impossible – convincing a major bank to put people before profits.
It’s now incumbent upon other banks to take the ANZ’s lead and do the same.