Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

The guarantee which was provided by the government in its statement on the weekend before last was taken on the basis of the advice that we received and was necessary to provide and maintain stability in the Australian financial system, which is of relevance to all Australians, including  those in rural Australia as well. The second point is this: the consequences of the government’s action flow through to the financial system more broadly. If you have continued stability in the Australian financial system, frankly it benefits over time all users of credit in the economy. Obviously those who are immediately covered by the deposit guarantee will obtain that benefit in the immediate term, but more broadly that, together with the critical provisions by the government to provide a guarantee for the wholesale term funding arrangements of the banks, helps to bring and maintain stability for the entire system. My third point in response to the Leader of the Opposition’s question is this: if you look at the cost of finance out there for all Australians, look carefully at what has happened in the period since the government made this announcement on Sunday a week ago.

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