Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is addressed to the Prime Minister. Has the Reserve Bank governor advised in respect of the deposit guarantee scheme ‘not only must there be a cap, but the lower the better’?

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

It is remarkable that, given the opportunity to defend one of the institutions of the Commonwealth, the alternative Prime Minister of Australia declines that opportunity and leaves on the record his attack on the Secretary of the Treasury yesterday. It follows of course a series of statements by those opposite as they have sought to pick away at the institutions of this country in recent times, including the Reserve Bank.

The Leader of the Opposition asks about the bank guarantee. As I indicated to the House yesterday, the government took its decision the weekend before last at a time when there was a complete meltdown in stock markets around the world and where confidence had been assaulted. The government, in taking that decision, did so based on the advice provided to us by the Secretary of the Treasury—an office which we defend and a person whom we defend. He did so having consulted with the Reserve Bank and the other economic regulators. The government stands by the decision. It has helped to restore and maintain confidence in our banking and financial system. It was the early and decisive action which was necessary, and I would have thought that the alternative government of Australia, at a time of global financial crisis, would have supported it as well.