Nick Xenophon (SA, Independent) Share this | Hansard source

I co-sponsor this motion. I support it and I believe it is the right thing to do because of the unintended consequences of having an across-the-board ban on exit fees. They should only be applied on the big banks as a matter of course. The right thing to do is to have tougher legislation, which I have introduced, that relates to unreasonable fees and shows mutuality between those fees and the costs of those charges.

Let us put this in perspective: $33 million in exit fees compared to $11 billion in bank charges and fees. There is a better way of doing this. I do not want to see the unintended consequences of the impact on small lenders that we saw with the bank guarantee legislation as a result of the GFC—a good idea badly implemented. You made the banks bigger and you have marginalised the smaller lenders. That is why I am very pleased to be associated with this motion.

Question put:

That the motion (Senators Cormann, Xenophon and Williams's) be agreed to.

The Senate divided. [16:03]

(The President—Senator Hogg)

Question negatived.