Joe Hockey North Sydney, Liberal Party, Shadow Treasurer
2:42 pm
My question is to the Treasurer. I refer the Treasurer to his bank account switching package, which came into place on 1 November 2008. How many Australians have switched banks as a result of your package?
Wayne Swan Lilley, Australian Labor Party, Treasurer
I thank the shadow Treasurer for that question. He asks about the bank switching package that we did put in place—something that those opposite could not find the wit to do in 12 years.
Wayne Swan Lilley, Australian Labor Party, Treasurer
The introduction of that package was then followed by the global financial crisis and of course the global recession. It was also followed by a marked reduction in rates. It is true to say that in those circumstances it was not utilised strongly, for commonsense reasons. As I said before, there is no silver bullet when it comes to competition.
Unidentified interjection - Hansard doesn't record who said this
Opposition Members:
Opposition members interjecting—
Joe Hockey North Sydney, Liberal Party, Shadow Treasurer
Mr Speaker, on a point of order: a specific question—how many people had switched bank accounts since 2008. How many?
Wayne Swan Lilley, Australian Labor Party, Treasurer
The bank switching package was part of a range of measures which have been introduced by this government over time, including the ones I was talking about before, such as tough new laws to crack down on unfair mortgage exit fees. That is a very important reform, as are the strong reforms we are putting forward for credit cards and our $16 billion investment in AAA-rated RMBS. There are a number of other reforms, such as strengthening deposit funding for smaller lenders—that is a 50 per cent discount being phased up to $1,000 worth of interest income—and, of course, all of the bank guarantees. I think it is a comprehensive package which is going to help a lot of Australians.