Member for Kennedy Bob Katter has stepped up the rhetoric in his pursuit of a Royal Commission into the banks.
He says any investigation into banking practices by Australian Prudential Regulation Authority will fail, labelling APRA a ‘lapdog’.
“Let’s just go through what APRA hasn’t done. APRA has not raised a finger to stop the toxic mortgages by the banks.”
“A quarter of Australia’s entire population lives in the greater Sydney/Wollongong/Newcastle area where average housing prices are over $870k. An area where the average take-home-pay (after tax) is $56k.”
“There is no way that with even two income earners these people can meet the required interest and repayments on $870k.”
“These loans are toxic. And if they are to be driven by foreign investment, then arguably that is worse still. Foreign investors are preventing Australians from buying a house. In either case, where is APRA?”
Mr Katter says Australia is out of step with the rest of the world because we have recourse lending.
“You can’t a make house repayment, the banks sell you up and the shortfall between the purchase price of a house and the fire sale price of the house stays as a debt with the borrower, once house owner”.
Mr Katter says that in sharp contrast, in countries like America, the homeowner loses his home and loses the money he put into the house, but the debt vanishes and resale of the house is carried by the bank as it should.
“The APRA has not and never will be a watchdog. It will be as it always has been; a lapdog and the carnage that has been wreaked upon the Australian people by the oligopolistic powers and greed of the banks.”
Mr Katter says the Royal Commission model works and is the most effective approach for revealing corruption and unethical practices and providing the public with full disclosure.
“But what a Royal Commission does, where the highly secretive APRA’s of this world act in obscurity and in a clandestine mode of operation, a Royal Commission operates in the glaring bright lights of the public gaze – the spotlight of the mass media and social media.”
“And in the glare of the light of day, parasites will die upon exposure to sunlight and why are they scared of the people being able to see clearly what is going on. Why are they so scared?”