Christopher W Priestley & Claire M B Priestley "Salt Glen"
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Christopher W Priestley & Claire M B Priestley "Salt Glen" 6 March 2017 RE: SUBMISSION - Senate Inquiry into regulatory framework for the protection of consumers. including small businesses, in the banking, insurance and financial services sector · Introduction We thank the Senate for initiating an inquiry with very relevant terms of reference that reflect the current crisis decent Australians are facing due to a lending culture embedded with deceit and complete lack of connection to human life. We hope this inquiry is not just another banking inquiry that shows how banks destroy people financially and emotionally and victims still find there is no justice and no financial compensation. Often these inquiries leave the victims more traumatized because they have exposed their story triggering horrific memories with no positive outcome. Banks and any bank employees that have committed illegal activity need to be exposed and charged and compensation must be enforced. Whistleblowers need to be protected so that any collusions between banks and prospective buyers prepared to participate in unethical sales for financial advantage is exposed. We are siblings that grew up on our family owned land that ran a cattle, cotton and wheat enterprise at Carinda on the Macquarie River near the junction of the Castlerea h and Barwon rivers in between Brewon Station and Mirawlyn Cotton - The National Australia Bank chose to destroy our viable farming business and knowingly used our creditors to the banks benefit. This submission is also done for the intention of seeing our creditors gain justice for the financial stress the NAB put them in, our creditors also became victims of the actions NAB chose to take to ensure our farm stopped functioning and suffered irrepairable financial stress. In 2004 we inherited 7,171 ha including the irrigation section of the family business, 2 Macquarie river water licences and one house. We also inherited the family debt of about $2.2 million. At the time we approached the NAB for finance we were worth approximately $5 million Net. 9 years later we found ourselves homeless and financially ruined with unpaid creditors and a claim by NAB for about $1 million. In 2004 within 9 days of approaching the National Australia Bank (NAB) at Walgett to refinance this family debt and to provide capital to grow cotton and other associated farm running costs the NAB had offered us a $3million loan based on our land and water licences being valued at $7,300,000. The NAB offered us this loan when the Walgett Shire Council was an Exceptional Circumstances (EC) Drought Declared area. At this time EC assistance included interest rate subsidies that banks received directly from the NSW Rural Assistance Authority. The NAB letter of Offer dated 18 August 2004 stated "I believe your goals of committing to irrigated agriculture by buying your own farm to build your long term wealth, can be met". On the contrary when we could build our wealth and be debt free the NAB refused to finance crops in particular irrigated cotton at $1000 per bale. Our NAB loan history ends in October 2013 when the NAB finalized the sale of our home and land via a mortgagee in possession sale by tender - who also trade as Budvalt Pty. The NAB treated us like criminals and evicted us from our only home and land with the assistance of sheriffs, security guards and locksmiths. This eviction took place after three years of NAB continually using unethical tactics to gain possession of our home and land, some tactics are highly likely to be fraudulent if the government ever chooses to investigate them. For some reason the NAB which promotes itself as being the leader in Australian agribusiness lending was determined to see us removed from land that was known for having highly valuable water licences because of the position of the land on the confluence of the Macquarie, Castlereagh and Barwon rivers with similar opportunistic water access and capacity to that of Cubby Station. From 2009 onwards the NAB refused to provide our business finance for crop production, including when cotton was at a historical high of $1000 per bale and moisture levels in 2010 for wheat had been the best since the year 2000. The NABs refusal to renegotiate the long term loan led to a default which enabled the NAB to apply penalty interest rates which then enables banks to serve enforcement action for possession via Farm Debt Mediation. The NAB CEO Cameron Clyne and the NAB agribusiness CEO Khan Horne breached our contract when they referred us to Farm Debt Mediation for our complaints to be investigated. The ASIC guidelines for the EDR section of the Code of Banking Practice does not include Farm Debt Mediation for complaint investigation. The EDR section of the Code of Banking Practice is to be a free service, Farm Debt Mediation is not a free service. The NAB were very aware that we had been blessed with the kindness of wheat contractors to ensure we sowed a wheat crop in 2010 which was most certainly a 1.5 tonne to the acre crop due to incredible moisture levels. The NAB gained the benefit of this crop at no cost to the NAB and then refused to give us access to this income to pay these and other generous creditors. From 2010 - October 2013 whilst we tried to convince the NAB to look at all logical debt remedies such as growing crops or equity partnerships and then tried to defend ourselves in court our business accumulated penalty interest of about $4million. Instead of being debt free with surplus capital as the expert report referred to below shows we have found ourselves completely broke with NAB claiming we still owe them about $1 million as the mortgagee in possession sale did not cover the total balance NAB have claimed we owe. Attachment A - Confidential Attachment - 2012 expert report on financial impact of NAB actions on River Staation Partnership operated by Priestley's "Glenacre" Walgett states: "The lack of financial resources has proven to be very costly. One that I believe NAB must take at least some responsibility for if it as a leading rural lending institution in Australia truly believes it understands the lending environment it operates in" ''The net operational surpluses that could have been realised if operating capital had been forthcoming to the River Staation Partnership from 2009 until the present time is in the order of $3.67 million for grain enterprises and $5.42 million for the irrigated cotton enterprise. In total these equate to a figure of $9.09 million." ''This is not an insignificant amount and one that I would conclude would have been sufficient for the River Staation Partnership to meet its obligations with financiers and other creditors, pay down debt levels and allow it to progress to a more secure basis of operating into the future with greater equity." "This report has not focused on the grazing enterprise as part of the River Staation Partnership. However the grazing enterprise has a production base spanning some 5114 ha and would offer cash-flow support to the grain and cotton enterprises when appropriately stocked and managed." Australian Bankers' Association 2004 Code of Banking Practice misleads the Australian pubic and farmers: As reported in the three Priestley submissions 394,397 plus supplementary submission 397 to the Senate inquiry into the performance of ASIC, the Bank CEOs governed the 2004 Code of Banking Practice that claimed the Code Compliance Monitoring Committee was independent, these CEOs' knew that the Code had been voided by an unpublished contract (the ABAs' Code Compliance Monitoring Committee Association Constitution of February 2004) that it was ~eNAB response to our submission on behalf of former director - is not sufficient to answer our allegations made three years ago, the NAB forced us into Farm Debt Mediation and failed to investigate our complaints. (Attachment B) Our business is a perfect example of how the Bank CEO's ensured that when a bank decides to foreclose the customer would lose their rights claimed in the bank contract, and the bank would quickly put the customers' case into a legislated court forum. Unbeknown to us, Cameron Clyne, the NAB CEO who we had made complaints to in 2010 (as was our contractual right to do so under the Code of Banking Practice) had engaged in a secret unpublished contract that changed the terms of our contract. As CEO of the NAB, Cameron Clyne was part of the Australian Bankers' Associations' 2004 "Code Compliance Monitoring Committee Association Constitution" (CCMCA). As a committee member of the CCMCA Cameron Clyne was aware that the terms of our contract had been changed and he has willfully engaged in the deception of the CCMCA's Constitution which ensures the CCMC are not independent investigators as the contract claims. Cameron Clyne has intentionally deceived us by refusing to ensure our complaints were investigated and advised us that "farm debt mediation is the proper forum for the resolution for these matters". We feel this is a case of fraud committed by the NAB CEO against us and our business. In late 2012 when we became aware of the CCMCA constitution the Supreme Court had already granted default judgment. In December 2012 we brought this secret document to the attention of Justice Garling when we attempted to have a new defence heard based on extraordinary evidence. However we were unable to pay a lawyer to represent us and our case was not even heard due to errors of law. The NAB lawyers did not disclose to Justice Garling that this constitution meant that when the NAB adopted the Code of Banking Practice in May 2004 it had no intention of adhering to the Code because the NAB CEO had already engaged in the February 2004 constitution that had changed the terms of the contractually binding Code of Banking Practice.