To All Australian Voters –
A pragmatic thought for the consideration by the Prime Minister of Australia and Leader of the Opposition and the Hon Barnaby Joyce MP special envoy for drought, to establish a Rural Capital fund (“RCF”) from money raised from two sources, such as –
Firstly, by a scheme of payment of enforceable “voluntary” fines from identifiable parties which have rorted the matters identified in the current Financial Royal Commission (“COM”), and
Secondly, give the suggested income tax cuts to banks and others on an agreed enforceable basis of contribution to the RCF.
Given the state of the rural economy and suffering incurred by many, there is an opportunity to create an RCF for the purpose of augmenting the relief presently on the table from the various governments and taking a more structured plan in providing various new water supplies and other capital expenditure. (The detail would have to be worked through.)
- It would be a fair outcome if those COM identified parties agreed (or were forced) to pay a voluntary fine on a civil basis for their transgressions. No doubt there are many others who would fall into this collection pool. The COM terms of reference could be kept open to handle a reference for any relevant party.
These same identified parties would enter into an agreement giving them benefit of the tax concessions on the basis that they get say, 20% of the tax benefit, with 80% going to the RCF. This would be for a deal period of five years then at the end the identified parties receive the 100% amount.
5.The identified parties will have large fines to pay so why not isolate them into helping fix a real problem with some meaningful money. Using the back of the envelope method of calculation I could see an RFC over five years having some $12-15 billion dollars in contributed capital.
Robert L Coulter
(Retired merchant banker and lawyer)