Live exporter accuses big four of hypocrisy after finance denied

One of Australia's biggest live exporters has accused a big four bank of hypocrisy for refusing it basic services despite its claim of having strong ties to agribusiness.

Key points:

Live exporter Wellard says CBA's decision to knock back its finance in 2018 was a hypocritical move

Pastoralists fear the bank's refusal to service livestock exporters could have broader implications for industry

A federal inquiry is looking at the impacts of the standards and practices of financial institutions on Australian exporters

Wellard owns and operates three livestock vessels and has been shipping or exporting livestock around the world for 40 years.

The WA-based agribusiness has written a scathing assessment of how it was treated by the Commonwealth Bank of Australia (CBA) in a submission to the Joint Standing Committee on Trade and Investment Growth.

The committee is scrutinising the standards and practices of financial regulators and banks amid signals that some financial institutions plan to pivot away from lending or insuring certain industries due to climate change.

Wellard executive chairman John Klepec said in 2018 that the CBA told the company that within 12 months it would no longer be extended credit and was required to close its everyday banking facilities, including trading accounts and credits cards.

Anger at 'positive spin'

Mr Klepec said the ultimatum flew in the face of the bank's "public position".

"Proudly proclaiming their agribusiness heritage and how they provide bank finance for farmers and station owners and stand by them â€" all the positive spin they put on it," he said.

"Then at the same time they refuse us financial services when we are fully involved in that sector's supply chain logistics."

Wellard is adamant CBA's decision to cut off services was based on the type of industry it represents.(

ABC Rural: Tom Major

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Mr Klepec conceded Wellard was experiencing financial difficulties at the time, but he was adamant CBA's decision was based on the type of industry the company represented rather than its financial situation.

"It is not credit that we were refused services for, it was a cheque account," he said.

"This was everyday banking facilities, credit cards for the staff.

"If there is no money in there you can't transact.

"This is not just one individual bank â€" this is not about CBA, let's be clear about that.

"CBA was one, all the others have done exactly the same.

"We went to every single other major Australian bank and every single other Australian major bank came back with the same reply â€" 'No.'"

'Small voices … massive impact'

Mr Klepec said financial institutions were being influenced by animal activists determined to shut down the live export trade.

"These minority groups have worked out how to manipulate the system and get what they want with their small voices to get a massive impact and the banks are going along with it, because they want to be seen as proactive in the ESG (environmental, social and governance) space," he said.

"If you shut down critical parts of an industry, you shut down the industry.

"They can't come out and say they support farmers at the same time kicking them in the guts."

David Stoate is worried about the banks' refusal to service livestock exporters is the start of a slippery slope.(

Supplied: Anna Plains

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Kimberley Pilbara Cattlemen's Association chair David Stoate was concerned the banks' refusal to service livestock exporters could have implications for pastoralists and farmers.

"The flow-on effects are potentially endless," he said.

"Where are they going to stop with these sorts of issues?

"Will they stop providing finance for farmers who use glyphosate because some people are concerned about that causing cancer?

"If you keep going with this sort of activism it's never going to stop and they won't be financing any farmers."

National Party MP George Christensen says the banks' record is hardly squeaky clean.(

ABC News: Jed Cooper

)'Pick and choose'

Committee chair George Christensen said banks and financial institutions should not be able to "pick and choose" who they did business with based on their "distaste" for lawful industries.

"The banking and insurance sectors in particular have a very unethical track record," he said.

"So it's a bit rich for them to be pointing fingers at other industries saying, 'You're too immoral for us to do business with.'

"Banks are given so many benefits courtesy of the government and ultimately the taxpayer, such as the banking guarantee, which is what kept them afloat during the Global Financial Crisis.

"They get that and so in return they are expected to provide a service to the Australian public and industry."

Hearings held on Tuesday centred largely on lending to thermal coal companies.

Australian Banking Association chief executive Anna Bligh told the committee the system was based on the "prudent assessment of risk".

"If we were to move to a situation where banks were somehow required to provide credit to any business merely because it was legal, I think we'd find ourselves in a very difficult position," she said.

CBA declined to comment.

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