THE state government has set up a working group headed by Deputy Premier Peter Ryan to work with people affected by the Banksia Securities’ collapse.
Premier Ted Baillieu said the working party would respond to urgent cases of individual and community need by co-co-ordinating emergency assistance with the federal government.
Mr Baillieu has spoken with Prime Minister Julia Gillard about the impact of Banksia’s collapse.
He said the federal government would work closely with Victoria to provide emergency assistance that may become necessary.
The working party would liaise with affected regional and rural municipalities to determine the extent and nature of the financial impact for individuals and organisations, Mr Baillieu said. It would communicate with the Banksia receivers, McGrathNicol, to ensure “timely and accurate information” was provided to affected communities.
The working party would also work with the federal government on financial regulatory issues, Mr Baillieu said. Last week the Premier said the question of whether regulations for non-bank financial bodies should be tightened should be put to the federal government.
“The collapse of Banksia Securities Limited is of great concern to the Coalition government,” Mr Baillieu said.
Deputy Premier Peter Ryan said Banksia was regulated at the federal level under the Australian Securities and Investment Commission (ASIC) but was not under the supervision of the Australian Prudential Regulation Authority (APRA).
ASIC said it was “actively engaged with the trustee and receiver” for Banksia but would not comment on whether it had begun an investigation.
Other members of Banksia Working Group include the Assistant Treasurer Gordon Rich-Phillips, Regional Cities Minister Denis Napthine, MP Wendy Lovell and representatives of the Treasury and Finance, Premier and Cabinet and Local Government departments.
Mr Baillieu announced in Bendigo last Friday that the Rural Finance Corporation would be available to help Banksia investors seeking independent information about their financial situation.