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

I absolutely welcome that question from the shadow Treasurer about the need in this country to have a more competitive banking system. It is obvious that the opposition does not think we should have a more competitive banking system. The shadow Treasurer can wave any paper he likes—whether it is a national newspaper or an FOI—but the behaviour of the banks tells us that exit fees are a huge barrier to competition. That is why we need the package of reforms that were outlined by the government at the end of last year.

Everybody on this side of the House understands how important it is to have a much more competitive banking system, how important it is to empower consumers, how important it is to boost the smaller lenders and how important it is to ensure that there is a flow of funds to the banking system through initiatives like covered bonds. But, of course, the shadow Treasurer is the only one in this House that thinks unfair exit fees are fair and that they should stay. He thinks exit fees of $7,000 are fair. That is his position. He thinks they are fair. We are committed to their abolition. As a consequence of that commitment at the end of last year, we have seen banks move to either abolish their exit fees or to bring more competition into the system.

When at the end of last year some of those banks put up their rates over and above the Reserve Bank decision, they were effectively saying, ‘We’re not afraid of the consumer; they won’t move because we’ve got them locked in with really big and unfair exit fees.’ That is the position that is supported by the opposition. They are not for customers; they are for the big banks. That is where the shadow Treasurer is.

There are only two things that are stopping consumers walking down the road and getting a better deal when it comes to their mortgages—unfair exit fees and the shadow Treasurer. We are going to get rid of the first. We are going to get rid of unfair exit fees and, of course, Mr Robb might give us a hand to do the second. What a rabble we have got over there. How can they actually ask these questions with a straight face? The finance spokesman wants the job of the shadow Treasurer, the shadow Treasurer wants the job of the Leader of the Opposition and the Leader of the Opposition wants to be leader of One Nation.

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