Bob Katter

BOB Katter, Federal Member for Kennedy, in a letter to the Assistant Treasurer, Hon Stephen Jones, has condemned past governments failed response to the Youpla collapse, suggesting they had been sitting on its impending doom for decades.

Youpla, formerly known as the Aboriginal Community Benefit Fund, went into liquidation in March this year after nearly 30 years of controversial operation, leaving thousands of First Australians financially destitute and desperate.

Mr Katter said, “Multiple complaints have been received by our office regarding Youpla. I’m told that 2990 people in Kennedy alone have been affected by the insurance fund’s collapse.

“One of our constituents has advised us that after losing her son to suicide in 2018, she joined the fund to ensure her children would not have to financially struggle in the future. It is our understanding she will be unlikely to receive any of her funds back – having paid $14,000 into the fund over the years.

“We are not advocating for a bail out. We are advocating for government to compensate those affected. Government was asleep at the wheel and despite knowing, took no action allowing further people to be victims of the inevitable collapse.

“The Mareeba Express¹ reported more than 300 Indigenous people in Mareeba have been caught up in the collapse of the funeral fund and that Yarrabah has been hit the hardest with a reported 786 people affected in a town with only 525 homes.

“This is utterly, utterly disgraceful. The first complaints made against Youpla date back to 1999 federally. The New South Wales Government have been aware of these complaints since 1992.”

Mr Katter said he had previously written to the Treasurer requesting an investigation with the view to assistance for those affected by the failure of Youpla.

In a response provided by the then Senator Financial Services, Senator Jane Hume said, ‘the Government has been after this shonky business for 30 years’. Mr Katter was also visited by a delegation representing “Sorry Business” in Canberra this week where he was appalled to learn the extent of the collapse.

“It beggars’ belief how this company was able to continue such predatory behaviour for so long,” Mr Katter said.

“The Albanese government has a chance to set an example and fix this by putting an end to the prolonged financial and emotional suffering of those who have been left at risk of not being able to pay for the funerals of their loved ones.

“An investigation must be rolled out immediately with a view to provide assistance to all those affected by the failure of Youpla and its associated entities to ensure they do not lose their funeral insurance plan savings.”

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1] https://www.theexpressnewspaper.com.au/community-and-business/data-reveals-extent-of-funeral-fund-collapse