Kelly
16-12-2010, 07:09 AM
Federal Member for Kennedy Bob Katter has called on the Government to take its banking policy back to yesteryear by re establishing a Government owned bank.
Mr Katter said he welcomed Treasurer Wayne Swan's banking package, which was released on the the weekend, but wanted him to go further.
The Government will try to keep interest rates down by banning mortgage exit fees, which can run into the thousands, from July 1, 2011.
The Australian Competition and Consumer Commission will also gain more power to investigate anti competitive behaviour between the banks.
People applying for loans will also receive a one page fact sheet outlining all the costs of a mortgage.
But Mr Katter said reinstituting a Government owned bank would be the best way to keep interest rates down.
"Such a bank would provide real competition, driving down interest rates and keeping the other major banks honest," he said.
Mr Katter said he also wanted to see a way to encourage "thorough and genuine negotiation in times of hardship" before a bank foreclosed on a mortgage.
Despite calling for further measures Mr Katter was broadly supportive of Mr Swan's plans.
"He must be applauded for putting the ute on the highway."
But questions have been raised about the effectiveness of the packages after National Australia Bank's chief executive officer Cameron Clyne said banks paid little attention to the official interest rate.
"The main driver of bank interest rates is not the Reserve Bank cash rate," he said.
"The banks have made a problem for themselves here by continually moving in line with the Reserve Bank.
"I'm hoping that as we start to have these sorts of discussions going forward people start to see there are different drivers of funding."
Mr Clyne said he felt the Government had consulted well with the industry, but ANZ and the opposition treasury spokesperson Joe Hockey have said the industry did not have a say.
"The banks told me, as late as a week ago, that they still hadn't heard from Wayne Swan on this package," he said.
"Treasury officials had spoken to them but Wayne Swan had never picked up the phone."
Mr Katter said he welcomed Treasurer Wayne Swan's banking package, which was released on the the weekend, but wanted him to go further.
The Government will try to keep interest rates down by banning mortgage exit fees, which can run into the thousands, from July 1, 2011.
The Australian Competition and Consumer Commission will also gain more power to investigate anti competitive behaviour between the banks.
People applying for loans will also receive a one page fact sheet outlining all the costs of a mortgage.
But Mr Katter said reinstituting a Government owned bank would be the best way to keep interest rates down.
"Such a bank would provide real competition, driving down interest rates and keeping the other major banks honest," he said.
Mr Katter said he also wanted to see a way to encourage "thorough and genuine negotiation in times of hardship" before a bank foreclosed on a mortgage.
Despite calling for further measures Mr Katter was broadly supportive of Mr Swan's plans.
"He must be applauded for putting the ute on the highway."
But questions have been raised about the effectiveness of the packages after National Australia Bank's chief executive officer Cameron Clyne said banks paid little attention to the official interest rate.
"The main driver of bank interest rates is not the Reserve Bank cash rate," he said.
"The banks have made a problem for themselves here by continually moving in line with the Reserve Bank.
"I'm hoping that as we start to have these sorts of discussions going forward people start to see there are different drivers of funding."
Mr Clyne said he felt the Government had consulted well with the industry, but ANZ and the opposition treasury spokesperson Joe Hockey have said the industry did not have a say.
"The banks told me, as late as a week ago, that they still hadn't heard from Wayne Swan on this package," he said.
"Treasury officials had spoken to them but Wayne Swan had never picked up the phone."