Category Archives: Banking Royal Commission
Scott Morrison PM gives the banks total control over the population
The Labor Party now owns the cash ban law. They have “Albowed” Morrison and the government aside to take charge of the law that, stripped to its essence, will jail Australians for not using banks.
Australians should call Albo and every Labor MP and Senator and demand to know why.
Labor MPs will scream till they are blue in the face that it’s not their law, it’s Morrison’s, but that’s a cop-out. Labor has the numbers to stop this bill, but instead they have fallen in behind the government to recommend in the final report of the Senate inquiry, released Friday, that Parliament pass the bill.
The most disappointing and dishonest part of Labor supporting the final report, and not issuing a dissenting report as the Greens did (an excellent job), is that it was Labor Senator Kimberley Kitching, who was on the Senate inquiry, who tweeted last Monday, 24 February:
“On the Senate committee looking at this, I was waiting for govt to provide evidence that their #cashban would actually impact current law-breakers (e.g. drug-dealers) rather than just inconvenience the elderly and people who don’t like banks. So far… nothing.”
So how on Earth can Kitching and Labor turn around and support the bill?!
The final report has eight recommendations, most of which are weak. For instance, they recommend reviewing the penalties for one-off as opposed to repeat offenders, but not the draconian jail sentences, which no other country with cash restrictions has. And they recommend moving the exemption for personal and private transactions, i.e. cash gifts to family members and buying a car from a friend, from the regulation, which is easy to change, into the bill, which is hard to change, but they don’t recommend doing the same for withdrawing money from the bank—this exemption is still in the regulation and remains easy for the Minister to drop, effectively trapping people in banks.
The overall problem with these recommendations is they don’t make the bill more effective in combatting the black economy; they are only intended to make the bill slightly more palatable to the Australian public. They can’t make the bill more effective because the government couldn’t provide evidence this law was necessary in the first place, as Labor Senators demonstrated, which is why it should have been rejected outright.
Will Labor insist on the recommendations, or cave?
There is, however, one recommendation that could potentially defeat this policy, but only if Labor insists on it! In the list of eight recommendations, the first is that “the government review existing powers and trends in the digital economy to assess whether the bill is the most effective response to the black economy”. In other words, the government should review whether this law is even necessary, and if it would work.
If implemented, this recommendation would significantly delay the cash ban bill, and possibly even end it altogether, because a genuine review would prove that the claims of KPMG’s Black Economy Taskforce, which recommended the cash ban, were dishonest. That report is a fraud: the late Michael Andrew who chaired the Taskforce—the only Australian to ever rise to global chair of a big four international accounting firm, KPMG, which is notorious for helping its clients in megabanks and multinational corporations evade tax and launder money to the tune of tens and hundreds of billions—had the supreme arrogance and gall to characterise the black economy as a blue-collar problem! His report pinned the blame for tax evasion in the black economy on the likes of tradies, hairdressers, nannies, personal trainers and gardeners, while absolving his former multinational business and its corporate clients. Worse, this report shows that Labor, supposedly the party of blue-collar workers, swallowed it.
It would be shocking to most Australians that this Senate report is not binding on the government, even though it’s from the government’s own committee. And even though Labor politicians signed off on the final report too, the Labor Party is also not bound by it. It is entirely possible for the government to reject the recommendations in the report, and for Labor to cave and support the bill anyway.
The question is: will Labor at least insist on the recommendations, or will they cave, and be responsible for a law that jails Australians for not using banks?
Call Parliament and demand answers
It is crucial that we keep the heat on politicians over this report, and this week flood politicians in Canberra with calls demanding they account for this report. All politicians are in Parliament this week, so the calls people make will be amplified. Here is who must be called:
- Assistant Treasurer Michael Sukkar, who is the Minister responsible for this law. Demand to know what the government’s response to the committee report will be, and whether it will accept all the recommendations. Ph: (02) 6277 7230 Email: Minister.Sukkar@treasury.gov.au
- Labor leader Anthony Albanese. Demand to know:
- Why is it Labor’s policy to jail Australians for not using banks?
- Why is Labor supporting this law even though their own Senators proved there’s no evidence for it?
- Will Labor even insist on all the recommendations, or will it cave and pass it anyway? Ph: (02) 6277 4022 Email: Anthony.Albanese.MP@aph.gov.au
- All Labor Senators and MPs. Ask them the same questions as Albanese, about Labor’s cash ban law to jail Australians for not using banks. Click here for a list of all Senators; click here to search for your MP on Parliament’s website.
Click here for a free copy of the Citizens Party’s financial crisis manual, The next financial crash is certain—End the BoE-BIS-APRA bankers’ dictatorship! Time for Glass-Steagall Banking Separation and a National Bank
Authorised: Robert Barwick‚ 595 Sydney Rd‚ Coburg‚ Vic 3058
Bob Katter, MHR said ‘big brother’ was getting more and more powerful after a Senate inquiry recommended a Bill banning cash payments over $10,000.
“This would be absolutely disastrous for the senate to pass this at a time when people are trying desperately to get their money out of the banks and financial institutions,” said Mr Katter.
“If this passes and you want to get your money out of the banks you simply won’t be able to.”
Mr Katter said the Bill would have dire implications for small businesses during natural disasters when people are unable to use Eftpos due to power and internet outages.
“If you are running even a very small business, $10,000 a week is not an unreasonable figure. During Cyclone Larry Eftpos was down for more than a week,” Mr Katter said.
“It is extraordinary that the Government would consider such an intrusion and destruction of basic human rights and privacy.
“The Parliament has sold the entire nation off to foreign corporations, they’ve bankrupted agriculture and now this is the next step.
“In China there is one CCTV camera for every three people and they are now incorporating facial recognition. In Australia the only people who have guns are the people in uniforms.
“In the famous novels A Brave New World and 1984 they had two way cameras in every household. Well, now we aren’t too far off from that.”
Queensland Katter MP, Nick Dametto said the limit on cash payments would be another assault on Australians’ freedom to be able to conduct legitimate business in a manner of their own choosing.
“This has been sold to us as a way for the Federal Government to control tax evasion but in reality all it does is give way to more control from the major banking corporations,” said the Member for Hinchinbrook.
“Australian currency is owned by the people, not the banks, and it should not be up to the Federal Government to decide how you spend it.”
KAP Leader and Federal Member for Kennedy Bob Katter has slammed a Federal Government Bill which will control how much cash people are allowed to spend as being a danger to the Australian freedoms; a danger which he thinks is greater than the danger to our lives through a terrorism event being carried out in Australia; which the bill sells as being able to reduce.
The Federal Government snuck through and tabled The Currency (Restrictions on the Use of Cash) Bill 2019 on Friday afternoon of the last parliamentary sitting while the House had risen and all Members and their staff were returning home.
The bill carries a punishment of significant fines and jail time of up to two years if a person is caught spending or accepting a cash payment over $10,000. If passed, the bill will come into effect from 1 January 2020.
“The danger here to our freedom is greater than the danger to our lives through terrorism,’’ Mr Katter said.
“Clearly there are a thousand reasons why people like to hide a little bit of wealth; and have access to cash.”
Mr Katter quoted George Orwell in his dystopian novel ‘1984’ saying “Big Brother is watching” and that a person’s right to privacy with some of their wealth is one of the most important rights that Australians have.
“I’m told that for every 10 people in China there is one camera watching. Now whether that’s accurate or not, in most police cases that have caught my interest, I notice that the first thing they go to is the security cameras and people have no idea to what degree they are being watched on a daily basis.”
The Federal Government’s key selling point of the bill is better control of the ‘black economy’; arguing that it will reduce money laundering and the purchasing of weapons on the black market, but Mr Katter warned that an increase in going digital will result in an increase in cyber-hacking and that the bill’s passing will open the flood gates on further restriction of freedoms.
“The Government promotes the bill as a measure to combat funded international and homegrown terrorism yet with the ever-rising digital theft and threat of international cyber hacking I wouldn’t be trusting my bank account or the authorities to protect it, nor should they be controlling it.
“The Government will argue that this is the one and only initiative that they will implement to eliminate the black economy however, once the bill is introduced and passed, they will have the flexibility to dictate many more amendments to the law. It will give the police the power to control your cash over $10,000.
“Once the legislation is in place, they have opened the doors to regulate and change as they see fit.
“The assumption that our cash transactions are due to unsavoury activity allows for the prosecution of the potentially innocent, it has always been innocent until proven guilty?
“I’m sure the Government and policing authorities’ intentions are good but the only people allowed to have guns in our society are the people in uniforms.
“So we have lost the right to protect ourselves and now our right to privacy has been taken away with this bill. Are the Government and authorities going to act responsibly? Yes, most of the time. All the time? No.
“All I see here is the undermining of the great principles of Magna Carta in the rule of law. Through insidious increments, ‘The means that is argued justifies the end’.”
THE Morrison government is attempting to sneak legislation through Parliament to virtually criminalise cash as part of an International Monetary Fund (IMF) drive to bring in negative interest rates, allegedly to “fight recession”.
Negative interest rates mean you pay the bank to hold your money, but cash in hand incurs no such charge.
It means governments will exercise even tighter control over money than they and the central banking system already have.
Draft legislation about to be pushed through Parliament by the Morrison Liberals will outlaw cash payments above $10k under the guise of tax efficiency and combating “the black economy”.
But the Australian lobby group Interests of the People (IOTP) says the real agenda is all about the imposition of the IMF’s extreme global monetary policy in the form of negative interest rates.
“This represents a significant curtailment of civil liberties, and more,” says IOTP.
Australians have less than two weeks to respond and mainstream media appears to have ignored it.
IOTP spokesman John Adams says the Australian Treasury has released draft legislation which was initially announced in the May 2018 Budget by then-Treasurer Scott Morrison.
Nothing was done last year, but the legislation now proposes introduction on January 1, 2020.
“I was skeptical that this ban on (cash) transactions would come in but now that the Coalition has been re-elected, the Coalition with ScoMo and (Treasurer Josh) Frydenberg have decided to push this initiative forward,” Mr Adams said on IOTP’s YouTube channel (“Red Alert: ScoMo declares war on the Australian people”).
Adams says the government is claiming it’s to deal with tax revenue and the black economy but if this was the case, why didn’t they do it a decade ago when the GST was brought in as a way of eliminating the black economy.
“They could have easily introduced certain bans on transactions at that point, but they never did. So why now?
“It’s because not of tax revenue, it’s about interest rates. It’s about the International Monetary Fund. They’ve written a series of technical papers … about how to make negative interest rates work.”
Adams says the IMF wants to make interest rates “deeply negative” e.g. negative 3 to 5 percent, something never done before in human history.
And this would allow the central banks to implement controls on money and people never before implemented in history.
Adams says this will be sold as an initiative to stop the black economy, but in reality it is the first of a series of stages to eliminate cash.
The Treasury announcement came out at 5:12pm on Friday, July 28, in an attempt to limit exposure of it. Mainstream media do not appear to have reported on the plans.
The consultation period ends on August 12th, which points to an attempt by the government to limit exposure of the plans, while allowing them to say “consultation was sought”.
The full interview can be seen at https://www.youtube.com/watch?v=770M2s6ZD8Y&feature=youtu.be&fbclid=IwAR2vEHSudRzJHl7ppoGhm5I8Y3zwR2eqjkD3u5vYyqe13ZyDPkYVzfGMGMg
from CEC, Melbourne
The fight against “bail-in” is on! The Morrison government has released for consultation a new law that bans cash transactions over $10,000. The pretext for this law is to crack down on money laundering and tax evasion in the “black economy”. This is a shameless lie! The formal recommendation to ban cash comes from “big four” global accounting firm KPMG, which is an accomplice of the world’s biggest money launderers and tax evaders. The real purpose for the cash ban is to trap Australians in the banking system, so they cannot escape negative interest rates or having their bank deposits “bailed in”.
Scott Morrison first announced this measure in the 2018 budget, originally to come into force this month, but now scheduled for January 2020. It was recommended in the October 2017 Black Economy Taskforce Report by Michael Andrew AO (who died last month), a former chief of global accounting giant KPMG. The report revealed that the strategy is to: “Move people and businesses out of cash and into the banking system, which makes economic activity more visible, auditable and efficient.” (Emphasis added.) It gives the game away by noting that it may benefit “financial stability and the effectiveness of monetary policy”—code for policies like bail-in and negative interest rates. To achieve this it recommended: “Moving to a near cash free economy. A $10,000 economy-wide cash limit should be introduced.” But $10,000 is just the beginning: in June 2018, just after Morrison announced it, KPMG was already lobbying Treasury to lower the limit to $5,000 or even $2,000.
Deception and stealth
When Morrison released the exposure draft of his bail-in law in 2017, he did so on a Friday afternoon when there would be no media attention. Only a sharp-eyed CEC staffer spotted it and recognised it as bail-in, enabling the CEC to mobilise a massive nationwide campaign against it which continues to this day. The government is being equally sneaky with this law. Treasurer Josh Frydenberg quietly released the exposure draft of the legislation, called the Currency (Restrictions on the Use of Cash) Bill 2019, last Friday afternoon, 26 July, and has allowed only two weeks for public comment.
The exposure draft of the bill has two notable features:
- It bans ALL cash transactions over $10,000, enforced with a penalty of two years jail;
- Division 2 is blank, containing only the words “To be inserted”.
What is the government hiding by releasing an incomplete draft, on a Friday afternoon, and allowing only two weeks for public consultation?
The deception doesn’t end there. In its explanation of the law, the government has sought to make it palatable by emphasising that there will be exemptions to the cash ban, including depositing and withdrawing cash in banks, and, curiously, most consumer-to-consumer transactions, such as for a second-hand car. However, the exemptions are not in the legislation. They are in a separate regulatory instrument to be issued by the Minister after the legislation is passed. This means that they are not permanent, but that in the future, the Minister will be able to scrap the exemptions without requiring new legislation. This is the “salami tactic”: first pass the law in a form that is politically palatable, and then slice off key changes. In a bail-in scenario, for instance, under the current regulation people fearing bail-in may withdraw all of their money from the bank, but the Minister will be able to issue a new regulation that suddenly stops people from withdrawing more than $10,000.
Not about money laundering
This law is emphatically not about controlling money laundering and the black economy. The vast majority of money laundering and tax evasion is done by banks and corporations, not individuals. And who helps banks and corporations do it? The big four global accounting firms, including KPMG, whose boss Michael Andrew recommended this cash ban! The big four literally write the tax laws that enable corporations to evade tax, and dominate the offshore tax havens like the Cayman Islands that exist for tax evasion and money laundering. When Michael Andrew was the global boss of KPMG—the only Australian ever to lead the worldwide operations of a big four firm—two of KPMG’s biggest clients, British banks HSBC and Standard Chartered, were caught in 2012 by US authorities in massive money laundering operations. In other words, KPMG assisted its clients to launder money, but is using money laundering as the excuse to take away the rights of Australians to use cash!
The real reason: bail-in and negative interest rates
Money laundering and tax evasion are nothing new, that they would suddenly require this “solution”. What is new is the plunge in the public’s confidence in the banks, especially since the global financial crisis. But instead of properly reforming the banks to restore the public’s confidence, through policies such as Glass-Steagall, which separates normal banking from the financial gambling that causes crises, authorities around the world have resorted to insane and in fact criminal measures that further destroy confidence in the banks.
The two most egregious measures are the criminal bail-in policy and the insane move to negative interest rates; bail-in steals deposits to prop up failing banks, while negative interest rates force customers to pay to keep their money in the bank. Both are coming to Australia. Morrison snuck his bail-in law through the Senate in February 2018 with only eight senators present in the chamber and no recorded vote. The Reserve Bank of Australia has aggressively slashed interest rates to 1 per cent, and in the banking crisis that is brewing right now they will feel compelled to follow countries like Japan and Switzerland down past zero and into negative territory, as the International Monetary Fund is recommending.
Both bail-in and negative interest rates destroy confidence in the security of bank deposits, which motivates people to take their money out of the bank and hold it in cash. This is the experience in Japan and Europe. So like some European countries, Australia is banning cash to force people to use the banking system so they cannot escape these policies, under threat of two years jail.
Fascism is the use of state power to benefit private corporations; by definition, this is a fascist assault on the freedom of Australians to use cash and not private banks. The CEC is calling on all concerned Australians to demand the government scrap this law and reform the banking system instead!
What you can do
The government has allowed only two weeks for submissions, in order to avoid scrutiny. Don’t let them get away with it! We have until 12 August to swamp Treasury with letters and emails, demanding they drop this law. Write an email or letter today to the Treasury: state your objection to any law that removes your right to use cash, and demand the government restore confidence in the banking system by properly reforming the system, not by trapping people in the system so they can’t escape policies like bail-in.
Email: firstname.lastname@example.org with the subject line:
Submission: Exposure Draft—Currency (Restrictions on the Use of Cash) Bill 2019
Address written submissions to:
Black Economy Division
Parkes ACT 2600
In his 2018 budget Scott Morrison announced a ban on cash transactions over $10,000, originally to come into force in July 2019, but now January 2020.
With this measure, Australia has joined what outspoken former Liberal Party economics advisor John Adams, who is forecasting an impending economic Armageddon, calls the “war on cash”—nations deliberately moving to a cashless society.
Going cashless is commonly promoted as an efficiency measure driven by technology, but it coincides with the global push for “bail-in”—the policy of averting bank failures by seizing the savings and investment funds of depositors and other classes of creditors.
Bail-in is one of a number of sinister developments in the international financial system, including negative interest rates, which drive people to keep their money in cash.
If it’s not in the bank, it can’t be bailed in.
And you can’t be charged for having it there, which is how negative interest rates work.
Morrison snuck a bail-in law through Parliament in February last year, the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018, with only a handful of MPs and Senators present when it passed and no recorded vote.
It authorises the “conversion or write-off”, a.k.a. bail-in, of so-called hybrid securities which are better known as bail-in bonds, which have been sold to hundreds of thousands of unsuspecting mum and dad investors and self-funded retirees. They are at risk of losing, collectively, more than $40 billion.
But the law included a massive loophole that the Citizens Electoral Council’s legal experts, as well as John Adams, Digital Finance Analytics Principal Martin North, and former APRA Principal Researcher Dr Wilson Sy, identified could be used to conduct a back door bail-in of deposits by stealth.
When Pauline Hanson’s One Nation senators notified the government they intended to close this loophole with an amendment that explicitly excluded deposits from any bail-in, the government and Labor Party opposition rushed the bill through the Senate when the One Nation senators weren’t present in the chamber.
Now, as the CEC revealed 4 March, the International Monetary Fund is saying that the 2018 law isn’t enough, and is demanding the government enact a full statutory bail-in regime that explicitly includes deposits. Moreover, the IMF is demanding that the government scrap all democratic safeguards over the bank regulator APRA, by which the Treasurer can give APRA directions and the Parliament can disallow an APRA policy. The IMF wants these safeguards scrapped, so that in the event that APRA orders a bail in of bank deposits in a future crisis, the government will not be able to block the order to protect the public.
This bail-in policy is guaranteed to destroy the public’s confidence that their banks will keep their money safe, and will drive people to take their money out and hoard it in physical cash or other forms.
So what are we seeing around the world coinciding with the rollout of a global bail-in regime? A massive and draconian crackdown on the freedom to use cash.
This is most obvious across the European Union, where the EU bail-in system called the Bank Recovery and Resolution Directive (BRRD) came into force in January 2016.
According to a 25 February 2019 post by John Adams on his website entitled “The New Global Push for Negative Nominal Interest Rates”:
- France has legally prohibited cash transactions above €1,000;
- Spain has legally prohibited cash transactions above €2,500;
- Italy has legally prohibited cash transactions above €3,000;
- the European Central Bank ended the production and issuance of its €500 note at the end of 2018.
Also, the government of India eliminated 86 per cent of all physical cash throughout the Indian economy in 2016 by banning popular denominations of the currency. This created a political uproar in India, and fuelled suspicion of India’s bail-in law which was introduced the following year, the same time as Australia’s. The backlash was so great that the Indian government was forced to withdraw its bail-in law—the first time that has happened.
Sweden is 95 per cent cashless, and Vietnam has a plan to become 90 per cent cashless by 2020.
Another common justification for the war on cash is the need to crack down on the black economy, which is the Morrison government’s excuse. But this isn’t genuine. There are adequate measures in place to track cash-based criminality, which CBA and other banks have ignored, and the same Morrison government shamelessly protects those banks from real scrutiny and real consequences.
The fact remains that limits on cash trap people in banks where they can’t escape bail-in.
Join the CEC’s fight to defeat bail-in and force Parliament to pass the Separation of Banks bill that Senator Pauline Hanson introduced on 12 February, for a Glass-Steagall separation of banking from speculation, which will fully protect deposits from financial dangers and bail-in, and restore confidence in the banking system.
What you can do—fight for the Separation of Banks bill to stop bail-in
- Make a submission to the current Senate Economics Legislation Committee inquiry in support of the Separation of Banks bill. The submissions deadline is 12 April, but do it straight away. Click here for instructions on making a submission.
- Call the chairman and deputy chairman of the Senate Economics Legislation Committee to demand they hold public hearings on the Separation of Banks bill, so that the inquiry is transparent and they can get a proper understanding of the need for bank separation from real experts who are not beholden to the banks.
Chairman: Senator Jane Hume – Liberal
(03) 9428 1773
Deputy chairman: Senator Chris Ketter – ALP
(07) 3881 3710
The Senate Economics Legislation Committee on 14 February initiated an inquiry into the Banking System Reform (Separation of Banks) Bill 2019.
This landmark senate inquiry was ignored by big media which preferred sensationalising the dust-up between One Nation’s James Ashby and its former senator Brian Burston in the halls of the senate.
from Citizens Electoral Council
This is a major blow for the banks, which had assumed that the Hayne Report from the banking royal commission, which did not recommended structural separation, would be the final word on the issue—bank shares soared on the news they wouldn’t be broken up. They celebrated too early, however.
On 12 February, a week after Hayne’s report became public, Senator Pauline Hanson introduced into the Senate the same bill that Bob Katter had introduced into the House of Representatives in June 2018. This bill was carefully drafted by the Citizens Electoral Council based on the USA’s successful Glass-Steagall Act of 1933 and the updated “21st Century Glass-Steagall Act” bill currently before Congress, adapted for Australia’s financial system.
The bill separates traditional commercial banks that take deposits and make loans from all other financial activities. This solves the problems of both vertical integration—the gross conflict of interests involving banks advising their customers to buy products from other businesses the banks also own; and horizontal integration—banks mixing commercial banking with risky investment banking that puts customer deposits, and the whole economy, in danger. The bill also brings the failed bank regulator APRA (Australian Prudential Regulation Authority) under much tighter parliamentary control.
Bank separation has the support of most cross-bench politicians in Parliament, including the Greens, Centre Alliance, One Nation and independents. It is also supported by key backbenchers in all of the major parties. The Labor Party had said they would support it if recommended by the royal commission; however, sticking with that position is untenable. They know that Commissioner Hayne’s terms of reference forbade the investigation of “structure”, which Labor had intended a royal commission would have looked at. Also, even Labor’s senior statesman Paul Keating has strongly criticised Hayne for not recommending structural separation.
(Hayne’s recommendation against structural separation is a scandal: that section in his report includes a blatant lie, and experts familiar with public inquiries have accused Treasury of a “dirty trick” to rig the outcome in favour of the banks.)
The opposition to separation comes from the big banks, the discredited regulators which are captured by the banks, and the leadership of the major parties who take huge donations from the banks. The banks wish to keep the parasitical structure that has enabled them to amass huge profits, not only through gouging their customers but also through gambling with their deposits, which they use to underwrite their huge derivatives bets that collectively amount to more than $40 trillion. There is a revolving door between the banks and regulators: high-powered executives from banks take key positions in the regulators, such as ex-UBS chief John Fraser taking over as Treasury Secretary in 2013-18 and former senior investment bankers holding six of the nine positions on the executive of bank regulator APRA; and regulators retire to plum banking positions, such as former Treasury Secretary Ken Henry becoming chairman of NAB and former RBA governor Glenn Stevens joining the board of Macquarie Bank. And not only do the big banks donate to the major parties, but so does the Australian Banking Association which lobbies for them, as do the Big Four global accounting firms which audit the major banks and have a track record of covering up dodgy bookkeeping by banks all over the world.
Make a submission
This inquiry is the chance for the Australian public to force the debate on banking separation that the royal commission was not allowed to have. The Senate Economics Legislation Committee is taking submissions from the public, so every concerned Australian should make a submission.
Here are some points to note about the Glass-Steagall principle of full banking separation:
- It works, as proved by its success for almost 70 years (1933-99) in America;
- It ends the conflicts of interests of vertical integration, which is the only way to ensure the misconduct exposed by the royal commission can’t happen again;
- It protects deposits from the dangers of speculation, which boosts confidence in the banking system;
- It stops banks from diverting credit into unproductive financial speculation, thus making more credit available for lending to neglected sectors such as small business, industry and farming.
The submissions deadline is 12 April, but don’t delay—make your submission today!
How to make a submission
Written submissions can be delivered to the Committee in two ways: 1) by physical post; 2) online.
- Post your written submission to: Senate Standing Committees on Economics
PO Box 6100
Canberra ACT 2600
Phone: +61 2 6277 3540
Fax: +61 2 6277 5719
Hon Bob Katter MP
KAP Leader and Federal Member for Kennedy
will respond via Facebook video to the release of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry report, as the first politician who called for a Commission back in May 2015.
3:30pm (Qld time)
TODAY (Monday, 4 February 2019)
Staff will upload live video to Bob Katter’s Facebook page re his response to the report’s release and findings.
Please note, Mr Katter is unable to travel from his home in Charters Towers today due to extensive flooding in Townsville and throughout the Kennedy Electorate and the closure of the Townsville airport (hence the Facebook video).
Timeline of the Banking Royal Commission and how it originated:
- End 2012 – Rural Debt Summit – Bob pressures the then Treasurer and Deputy Prime Minister Wayne Swan after a question in Parliament to act on spiralling rural debt. Bob pushes to form the Rural Debt Roundtable Working Group.
- 7 May 2013 – Bob organises rural crisis meeting in Richmond, Central Queensland. Bob forms Gulf Cattleman’s Association to steer the meeting and actions going forward. Federal Member Barnaby Joyce as Shadow Agriculture Minister and (then) Chief of Staff, Matt Canavan attend. Former Senator the Hon Joseph Ludwig (Minister for Agriculture, Fisheries and Forestry) also attends. Focus on the crisis meeting is on debt, drought and live cattle exports. After the meeting is called, but prior to being held, on 27 April 2013 Swan and Ludwig announce concessional loans (in Queensland, administered by QRAA) – package worth $420m Australia- wide.
- 30 June/1 July 2013 – Indonesian Ambassador tours the Gulf with Bob. The next day, the Indonesian Ambassador flies to Jakarta to brief the President ahead of Prime Minister Rudd’s visit. Live cattle quota numbers are restored following Rudd’s visit.
- 28 Feb 2014 – Bob and Rural Debt Roundtable Working Group Chair meet with Australian Banking Association (CEO and bank executive members) in Sydney regarding rural debt and the Private Members Bill for a Rural Reconstruction Board.
- 5 December 2014 – Winton ‘Last Stand’ meeting called by Robbie Katter (Queensland State Member for Traeger and Bob’s son) where Federal Member Barnaby Joyce attends as now Minster for Agriculture and Water Resources. Radio and TV commentator Alan Jones is a special guest. From this, David Pascoe compiles a Facebook story about Charlie Phillott and the ANZ Bank , which goes viral. Following this meeting, Minister Joyce gives another $100 million in concessional loans and the ANZ puts a moratorium on foreclosing on any new drought-affected farmers for a year. Bob says he will name and shame banks behaving badly in the media and Parliament.
- May 2015 – After battling ANZ and other bank cases, Bob calls for a Royal Commission into the banks.
- 12 July 2015 – 60 Minutes airs story on Charlie Phillott and ANZ Bank.
- 30 August 2015 – Mike Smith’s (CEO of ANZ) apology to Charlie Phillott airs on 60 Minutes.
- 19 October 2015 – Queensland State Member for Traegar Robbie Katter is appointed Chairman of the Queensland Government’s Rural Debt and Drought Taskforce. The final report, released in in April 2016, made 14 recommendations including establishing a Rural and Industries Development Bank, a Farm Debt Reconstruction Authority, and a commercial Multi-Peril Insurance (income protection) product for all primary industries.
- 26 May 2016 – Queensland State Member for Traeger Robbie Katter introduces the Rural and Regional Adjustment (Development Assistance) Amendment Bill.
- 10 October 2016 – Bob introduces Banking Commission of Inquiry Bill 2016, as per election promise.
Federal Member of Parliament George Christensen comes out publicly saying he will support a bill by Bob.
- 27 March 2017 – New Bill introduced by Bob which has input from other MPs – People of Australia’s Commission of Inquiry (Banking and Financial Services) Bill 2017.
- November 2017 – Then Prime Minister Turnbull announces he will call a Royal Commission after the big banks give him the go-ahead.
- 25 June 2018 – Bob moves the Banking System Reform (Separation of Banks) Bill – legislation for Glass- Steagall separation of commercial banks from all other financial activities.
- 27 June 2018 – Bob attends the Banking Royal Commission public hearings and asks a question of the Commissioner Kenneth Hayne QC. Mr Katter interrupts proceedings to ask the Commissioner whether the banks’ failures will be properly fixed. The Commissioner concedes that public hearings into agribusiness lending will have to be extended.
- 4 October 2018 – Bob directly asks then Treasurer and now Prime Minister Scott Morrison in Parliament if he could assure the House that the Royal Commission would include the “carrion” – the receivers – and address the issue of a Reconstruction Bank. The Banking Royal Commission a priority in the 45th Parliament for Bob Katter.
from Channel 9
A woman who was yesterday involved in a five-hour siege at a Perth property has died in hospital.
Officers were called to a home on Douglas Road in Martin, in the city’s south-east, about 9am yesterday following reports a couple in a home made threats after the sheriff’s office came knocking to repossess their home.
Police fired a single non-lethal shot as the siege came to an end at about 2.30pm.
The home is owned by Rodney and Janice Croft, who were arrested by police.
Soon after, Mrs Croft was rushed to Royal Perth Hospital in cardiac arrest and in a critical condition. Her husband remains under police guard in hospital.
It’s not clear when she suffered the cardiac arrest or if she was hit by the non-lethal police round.
Mr Croft was the former Deputy Mayor of Gosnells but in recent years the couple had battled long running and costly legal troubles.
It is understood they owed close to a million dollars.
No charges have yet been laid. (Against the police? Ed)
by Senator Fraser Anning
Since becoming a Qld Senator last year, I have assigned a staffer to listen to the stories of people who have been victims of questionable lending practices of Banks.
I wanted to assist these people by helping them find ways to receive justice. At the same time, I have been trying to get the Banking Royal Commission extended so they can deal with all the problems
in the banking system.
I have been motivated by the experiences of several close friends who have been victimised by banks and who have unjustly lost their assets and their livelihood.
The Government has resisted calls to extend the Royal commission, but less than 30 cases (from the 10,000 submissions to the RC) have been looked at. This means that so far, only the tip of the iceberg has been exposed.
During my investigation into this subject, I have been staggered by the depth of deceit and manipulation that I have heard from Bank victims involving the clever and deceptive actions of banks, lawyers, receivers, liquidators and other bank agents. The public has been kept completely in the dark by a media which is indifferent at best.
My staff have looked at more than 80 cases in detail. Many of these unfortunate people had successful businesses, farms, pubs, and houses worth millions of dollars. Within a short time, their assets were sold, and they were bankrupted.
The bankruptcies appear to have been a tactic to make sure they did not have any means to fight back.
Some victims have suicided, but many, many more have been so depressed and distraught they cannot even bear to hope for justice. My staff know of several who could not even write a submission to the Royal commission due to the pain of remembering the details.
There are three points I want to make for Australians to consider:
1) It is vital we elect people in parliament who will not be corrupted by party politics or personal payoffs. Unfortunately, few will buck the system and stand on the side of justice.
Instead, they allow themselves to be controlled by the party. I don`t believe the dominating party system was the intention of our nation’s founding fathers, and …….it is destroying our democracy and preventing justice from being done.
2) If you are a bank victim, I suggest you join in with the hundreds of others who are getting mobilised to find ways to get justice. Please contact my office to learn how to get in touch with the appropriate people.
3) Many Bank victims (and one of my staff) have been attending Bank AGMs to inform shareholders and the banks boards about the human consequences of bank actions.
These actions have financially and emotionally destroyed some customers. I encourage people to use BANK AGM`s as ways to shine a light on the corrupt behaviour of banks (and their agents), so they will be pressured from inside as well as from outside their organisations.
I wish all Australians well and I encourage them to say hello whenever I visit their area.
There were explosive scenes at the banking royal commission on November 27, during its final days as an audience member accused it of “concealing fraud”.
ASIC a toothless tiger when it comes to the Commonwealth Bank
The banking royal commission was hijacked this afternoon by an outburst from an angry audience member who accused it of fraud.
The man interrupted senior counsel assisting the commission Rowena Orr QC, who was questioning Australian Securities and Investments Commission (ASIC) chair James Shipton.
Royal commissioner Kenneth Hayne QC repeatedly asked the man to stand down without success, and appeared to be thoroughly unimpressed during the tirade.
The man, who had been seated in the public gallery, ranted against alleged corruption within the banking and financial services industries.
Although his words were difficult to hear over the commission’s webcast, he was clearly heard accusing the commission of being “corrupt” and “concealing fraud”.
“Why are you concealing the greatest fraud in this country which is variable interest rate loans?” he said.
Security eventually escorted the individual from the courtroom.
In typical Rowena “Shock and Orr” style, the QC continued on completely unfazed, immediately firing off her next question.
Earlier today, Mr Shipton admitted ASIC should take criminal action against the bigger financial institutions more often, and said the organisation had failed to act against the Commonwealth Bank’s mishandling of consumer credit insurance and National Australia Bank’s home loan fraud.
“Today these matters would be handled very differently,” Mr Shipton said.
“I used the word mistake deliberately because mistake, in effect, constitutes a misguided decision.”
He said ASIC had only just started to take action against CBA in October — more than two years after the bank owned up to the insurance mis-selling.
Mr Shipton, who has been in the top job since February this year, said ASIC had focused on fixing the problem with customers instead of taking action against the bank.
“In some cases I clearly am of the view that we should have tried to and work towards running both remediation program and the enforcement investigation at the same time, in parallel,” he said.
But Mr Shipton insisted ASIC would be pursuing more legal action in the future when faced with banking misconduct.
“I want to make it crystal clear we will be undertaking more court-based actions,” he said.
“We will be more adventurous, as it were, in pushing points of law.
“We will be taking more — let’s call it risks, because we now have, through my direct engagement with the government, more funding to do exactly that.”
The commission also heard CommBank was concerned about being seen as “paying off” ASIC after the bank was let off the hook with a $300,000 community donation — which the regulator agreed with — instead of a fine over misleading CommInsure ads which were found to have breached the law.
“It was a mistake not to act quicker, swifter and earlier,” Mr Shipton said in response.
Ms Orr’s trademark, dogged questioning was on show yet again today, as she repeatedly insisted Mr Shipton answer her questions thoroughly during a number of tense exchanges with the witness.
The inquiry has ended without the Commissioner calling for extra time to examine more than the 27 distressed farmers it heard, out of more than 10,000 submissions it received.