Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Commerce Commission backing farmers the right call

Damien O’CONNOR

Spokesperson for Primary Industries

17 December  2013      MEDIA STATEMENT

Commerce Commission backing farmers the right call

The Commerce Commission’s decision to issue legal proceedings against three major banks over their sales of interest rate swap contracts to rural customers is great news, said Damien O’Connor, Labour spokesperson for Primary Industries.

“This has been a long time coming and finally the Commission has accepted what I’ve been saying all along that these so-called swaps loans were misrepresented to rural customers. This move by the Commerce Commission is an important step forward in finding out what effect these banking products have had on rural New Zealand.

“I must also acknowledge the advocacy work by Jeanette Walker who was determined to seek justice for the many farmers who found themselves in difficult situations as a result of these swaps loans. Without her tireless commitment it is doubtful the Commission would have initiated this inquiry.

“In simple terms, a swaps loan is a type of fixed rate loan, sold to farmers as a way to manage their interest rate risk. What many were not told was that the bank could increase its margins if they considered the farmer became high risk. This has put some famers under huge financial pressure.

“Farmers are losing their farms as a result of hard sell tactics by banks who have locked them into high interest rates they can’t escape unless they pay hefty break fees. These tactics have destroyed the important trust relationship that needs to be built between the rural sector and banks as partners in farming for the future“, Damien O’Connor said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Mt Eden Prison: Serco Inquiry Extended

A two month delay to the Government investigation into prison fight clubs shows the extent of problems within the Serco circus, says Labour’s Corrections spokesperson Kelvin Davis. More>>

ALSO:

Health And Safety: Late Addition Of National Security Provisions A Concern

The New Zealand Law Society has expressed its significant concerns at the last-minute addition to the Health and Safety Reform Bill of provisions for a closed material procedure for court proceedings where national security is involved. More>>

ALSO:

Rugby And Beer: World Cup Alcohol Bill Passes

ACT MP David Seymour’s Sale and Supply of Alcohol (Extended licensing hours during Rugby World Cup) Bill completed its third reading by 99 to 21... More>>

ALSO:

Gordon Campbell: On The Flag Campaign

So far, the public has treated the government’s flag campaign with something between disinterest and disdain. Most New Zealanders have instinctively seen through the marketing hype involved. More>>

Change For 2017: Local Govt To Decide On Easter Sunday Trading

The Government is to enable local communities, through councils, to decide whether retailers can open on Easter Sunday, Workplace Relations and Safety Minister Michael Woodhouse announced. More>>

ALSO:

(And Targets Worse Than Australia's): Foresters Abandoning Emissions Trading Scheme

The Government’s gutting of the Emissions Trading Scheme has caused foresters to leave and emissions to rise, says Labour’s Climate Change spokesperson Megan Woods. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news