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 Make the most of bank mediation 

Make the most of bank mediation

31 May, 2011 04:00 AM
TRUCKING may be in the blood of NSW Senator, John Williams, but he also wants to prevent farmers from getting railroaded during mediation with their banks.

Under NSW State legislation, farmers have the opportunity to conduct final mediation meetings with their banks.

But Senator Williams said he had spoken to a number of farmers recently who were entering mediation meetings without a rural councillor or solicitor.

He said farmers needed to be aware banks hold mediation sessions almost every day of the week and were experts at it.

But for farmers, the process is a once in a lifetime experience and they need to ensure adequate support measures were in place, he said.

“My message to farmers is simple; do not go into mediation without somebody by your side who is experienced in mediation, be that a solicitor, rural councillor, or a politician,” Senator Williams said.

“I’ve done many mediations and I can tell you, don’t go in unarmed because the banks are experts at it.

“I’ve spoken to people who have agreed to mediation, signed off on the heads of agreement and the terms and conditions of their settlement but had very little understanding of what they were doing.

“Unfortunately the ramifications can be severe.”

Senator Williams said former NSW Premier, Bob Carr, introduced the legislation from opposition in about 1993.

He said the legislation gave farmers a final opportunity to discuss issues and provided some measure of relief during a time of high stress.

“I’m not naming any single bank but they are all experienced and it’s a tough time for farmers, most of them are under great stress and need somebody there to give them a hand,” he said.

The Senator said he has warned, and will continue to warn banks, that sending receivers into family farms was inappropriate because in many cases they did not understand the fine detail of farm management and animal husbandry.

While there has been an increase in bank mediation sessions after a decade of testing seasons with compound effects for farmers and rural businesses, Senator Williams said the future was bright.

“The future of rural Australia is strong,” he said.

“If we can get three good seasons and good commodity prices and low interest rates, the agricultural sector and rural Australia is going to boom.

“The demand for food around the world remains strong and the high commodity prices should hold up.”

While known for giving the banks a whack, Senator Williams also gave them a rare pat on the back for coming to better terms with rural Australians and empathising with people on the land.

“I must commend the banks, as there seems to be a change of attitude in recent times,” he said.

“They seem to be treating farmers as human beings and not numbers on a balance sheet and that’s leading to some good results.

“They are treating people in a civil fashion and I commend them for it.

“You have to give credit where it’s due.

“We’ve seen some good amicable results in the past few years where there have been some serious problems and I applaud the banks for sitting down and having those talks with our farmers in a caring manner.

“It is refreshing.”

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