KAP pushes for Qld rural bank by year end

A state-owned bank aimed at preventing debt-ridden farmers from being forced to leave rural Queensland towns could be in place by the end of the year.

Katter's Australian Party MP Rob Katter introduced legislation in parliament on Thursday to implement a reconstruction board, which he says will act like a normal bank.

"You create an alternate lending instrument that may operate like a bank but takes viable customers that don't fit the banks criteria," Mr Katter said.

He said the board would be a relatively cheap way for the government to address unemployment in rural areas and prevent people from leaving rural towns.

Mr Katter said he would seek urgency motions in parliament to ensure the legislation's quick passage for farmers' sakes.

"We'd be hoping that before the end of this year there'd be something in place to help them," he said.

When asked whether the private member's bill would be supported by the two major parties, Mr Katter replied: "We wouldn't be putting it to parliament if we didn't think we were going to have success with this."

The legislation stemmed from Mr Katter's Rural Debt and Drought Taskforce Chairman's Report, which he handed down earlier this month.

Mr Katter said rural debt was the main economic problem facing the state's rural and regional areas.

"We see it every day, the decline in these towns - and these towns disappear," he said.

"If the money's not getting paid in interest to the banks, it's going through the tills of the shops in the town."

The legislation will now be considered through parliament's committee system.