Media Release

Member for Kennedy Bob Katter has applauded Treasurer Wayne Swan on his moves to, at long last, “arrest the runaway locomotive of the Australian banking industry”.

“Under the Treasurer’s package, banning of mortgage exit fees delivers portability and competitiveness and the ability for smaller lenders to compete with the big banks is increased through deposit guarantees,” Mr Katter said.

"He must be applauded for putting the ute on the highway.

“However, two major things are missing from the proposal.

“Myself and others are having ongoing discussions with the Treasurer regarding the re-institution of a government-owned bank. All of the wise men of the Australian government – King O’Malley, Theodore, Chifley, Bjelke-Petersen, Henry Bolti, McEwen (Menzies) – saw the necessity of a bench-marking bank which takes in the bigger picture and has been the engine room of development in Australia since 1901.

“Such a bank would provide real competition, driving down interest rates and keeping the other major banks honest.

“Secondly, we are seeking a mandatory pre-foreclosure mechanism – as is already instituted in NSW – to encourage thorough and genuine negotiation in times of hardship.

“The time for real reform is here. A regime that gives itself a 4.75 per cent interest rate, while Europe is paying 1per cent and the juggernaut American and Japanese economies are paying 0.1 per cent hardly reflects a competitive atmosphere.

“Many bankers are trying to do the right thing – they will applaud these moves.”