Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I do thank the member for Franklin for her question because on the weekend I did announce principles to assist many people who are borrowing who may be impacted upon by the global recession. As we know, the Australian economy is being hit by the global recession—the worst event in something like 75 years. In the middle of this, we are doing better than any other advanced economy and we are working hard to stimulate the economy and to support jobs. In fact, the impact of our stimulus means that up to 210,000 more Australians have a job than would have been the case without our economic stimulus. Regrettably, unemployment will increase, which is why we do need to take steps to support Australians who, through no fault of their own, may become unemployed as a result of the global recession. This is why I was so pleased on the weekend to announce that all of the 144 retail banks, building societies and credit unions who focus on the mortgage market have signed up to principles to assist borrowers who are experiencing financial difficulty as a result of the global recession.

These principles will ensure that families are treated fairly when they are finding it difficult to pay off their loan. Options for assisting borrowers in distress include postponement for up to 12 months of the dates on which payments are due under a mortgage contract, an extension of the period of the contract and a reduction in the amount of each payment due under the contract, interest-only breaks on loan repayments and, of course, fee waivers. If people do not think they are getting a fair go from their bank or their building society, they can seek assistance from the Financial Ombudsman Service.

These are practical measures to support Australian families at a time when we are being impacted upon so savagely by a global recession. We on this side of the House understand the importance of supporting families and the importance of supporting businesses, unlike those on the other side of the House, who can only throw mud.

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