Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer her to the statement by her own Treasurer on 12 December, where he said that interest rates would come down as a result of the government’s banking package. I ask the Prime Minister again: will she guarantee that interest rates will not rise as a result of the government’s banking package?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

In answer to the shadow Treasurer’s question, let me adopt the following words and quote them to him because I think they are very wise words. They come from a member of the coalition, one of his Senate colleagues, Senator Williams. He said:

For 18 months now I have called for the abolition of exit fees on variable loans. When the banks raise their fees, and last December we saw Westpac and St George raise their fees more than the Reserve Bank did—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume her seat.

Daryl Melham (Banks, Australian Labor Party) Share this | Link to this | Hansard source

Give Whacka a whack!

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Banks is warned!

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I rise on a point of order that goes to relevance, Mr Speaker. It was a direct question to the person who is the Prime Minister.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Prime Minister is responding to the question. It is possible that by quoting somebody else the answer could still be within the standing orders as directly relevant. I will listen carefully to the response of the Prime Minister.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you very much, Mr Speaker, and once again I thank the shadow Treasurer for his question and his point of order—not much gets past him! It was a remarkable display of intellectual agility in this parliament today; I am glad we have been treated to it by the shadow Treasurer. Let me quote the words of one of his coalition colleagues. I presume they are not so fundamentally divided today that they are unwilling to listen to each other’s words. Senator Williams’s words go on. He said in respect of banking:

Treasurer Wayne Swan is saying vote with their feet. How can you vote with your feet when you’ve got to pay an exit fee to get out of your loan? The sooner the government abolishes exit fees and also establishment fees, the banks can still add those fees onto their margins, then we can have proper competition in the banking industry.

Proposition No. 1: competition is good; proposition No. 2: competition leads to better products for consumers. I do not understand what part of those two propositions the shadow Treasurer is struggling with so badly.