Labour Supports Inquiry Into Rural Banking

With farmers under increasing pressure financially, Labour supports a rural banking inquiry.

“Our Primary Production Select Committee has heard submissions on rural banking, which paint a grim picture of the financial strain many farmers are under,” Labour agriculture spokesperson Jo Luxton said.

Despite good returns over the last two years and opportunities opening up overseas, farmers are feeling the pinch because of the charges imposed on them by the banks.

“Our select committee has heard that one in four farmers are now feeling under financial pressure, which is affecting their mental health,” Jo Luxton said.

“New Zealand’s economy relies on primary exports. While in Government, Labour secured new trade deals with the United Kingdom and European Union, which opened up new markets to our farmers so they could make more from what they produce and help grow New Zealand’s economy.

“We mustn’t let down the very producers set to benefit from that progress.

“Labour supports a joint banking inquiry at the Primary Production and Finance and Expenditure Select Committees.

“I will be advocating for the inquiry to have a strong focus on rural banking, what’s happening in the industry, competition, interest rates and access to finance,” Jo Luxton said.