Banks must stand behind their Murray Darling basin customers during the current water buyout crisis
15th October, 2010
I am appalled by reports that banks might move to foreclose on their irrigator clients and local businesses affected by Labor's buyback of water entitlements.Over recent years banks have been much better at supporting farmers struggling to overcome the stresses of drought. They must now be decent citizens and not add to the burden communities face in this crisis.
Banks have been almost the only winners out of Labor's water buyouts. Most of the money paid for licence buybacks has simply been transferred into higher bank profits.
Despite assumptions in the Gillard Government’s paltry economic analysis of the impact of the buyouts, most of the money received by farmers has been used to pay down bank debts - usually on the insistence of the banks. Very little has been invested in local towns and very few displaced farmers have found jobs locally. Once the irrigation water is cut off there are no jobs. Businesses are closing too.
Once banks have foreclosed on enough of their customers, they will also leave town.
Murray Darling Basin communities have already paid a high price for the Government’s bungling of its water buyouts. Neither former minister Penny Wong nor new minister Tony Burke will visit or even talk to affected people. They have not explained the science behind their water management plan and the economic modelling is farcical.
It has taken massive shows of public anger in irrigation towns to even attract the attention of the Government to the impact and tragedy of this debacle.
It is time for the Government, the banks and the people of Australia to make a public commitment to the people of the Basin that we value their contribution as the food bowl of the nation and we care about their future.
