Jason Wood (La Trobe, Liberal Party, Shadow Parliamentary Secretary for Justice and Public Security) Share this | Link to this | Hansard source

The issue I want to bring to the attention of the House tonight is, sadly, those who are on fixed interest rates when the rate has been fixed at a high level. These people were actually expecting some relief from the government, especially when we go back to the Insiders program on the ABC in August 2008, on which the Treasurer, Wayne Swan, said:

… we put in place our bank switching package so customers could vote with their feet if they were unhappy with their bank and shift banks. Now, that package will be fully operational in November this year. So, if customers are unhappy with the behaviour of their bank, they can more easily shift their account.

I can tell the Treasurer—mental note to self that this is actually not happening. It is really sad. I have people in my electorate of La Trobe stuck on high interest rates. For example, I have Bryce O’ Byrne, who feels absolutely abandoned by the Rudd government. Bryce and his partner, residents of my electorate in a suburb called Boronia, purchased their property in August 2008 and locked in a fixed interest rate of 8.65 per cent on their loan, which they took out in July.

Remember the comment by the Treasurer: ‘The inflation genie is out of the bottle.’ Bryce was one of those who was greatly concerned in listening to the Treasurer that, if he did not fix his interest rates, then he would see even higher rates. For Bryce, it is actually a double whammy because, sadly, he has also lost his job. Look at the Commonwealth Bank, which Bryce has his loan with. When he tried to look at getting out of the loan early, the Commonwealth Bank came along and said, ‘You leave us and it’s going to cost you $30,000,’ which is an absolute disgrace.

We have seen the Prime Minister with his $42 billion spending package. It is not helping people like Bryce and others stuck in fixed interest rates. In 2007, 20 per cent of all home loans in Australia were fixed interest rate loans. It hit a high of 23.9 per cent in March 2008 and since that date it has been going down.

Another constituent—and I am more than happy for the Treasurer to speak to any of these constituents, because they have written to the Treasurer through me—Tyrone Solomonz, of Berwick, is another person who is stuck on a fixed interest rate, this time at 8.3 per cent with the ANZ Bank. When Tyrone tried to get out, his exit fee was $8,000, which, compared to others, is not that high. But Tyrone has lost his job and he cannot get out of this fixed loan and is most likely going to be forced to sell. He is trying his darnedest to do everything he can to save his house.

Mr Rodney Lamb, of Berwick, has also contacted me. He was forced in late 2008 to sell his home and was told the exit fees were $26,000. Upon contacting the bank just six weeks prior, they were only $16,000. So they jumped up by $9,000. He sold his home on 13 February this year, costing his family more than $25,000.

We look at what the Rudd government have done for banks. They have committed to a $4 billion bailout of commercial borrowers abandoned by foreign banks but will not spend one cent to bail out homeowners trapped in fixed high interest rates, not even those losing their jobs. 

It is just amazing. Look at the Executive Director of the ANZ Bank. He took home a package of $12.9 million last year and will not help Tyrone, trying to cope with his exit fees of $8,000. We look at the chief of the Commonwealth Bank, which charged Bryce $30,000. Last year the chief of the Commonwealth Bank received $8.6 million. And we have ING turning a blind eye to Rodney Lamb, demanding he spend $25,000 in exit fees.

The government are supposed to have this amazing, great relationship with the big banks. Why don’t they use some weight and help people who are stuck on these high fixed interest rates? It is killing them, especially as more and more people lose their jobs while stuck on fixed interest rates. All I can say is: please, Mr Rudd, help these people out. They are desperate.