Wednesday, May 23, 2012

AWU: Stop Bank Cartel

In a speech to the National Press Club that focused on economic pressures facing the non-mining sector, AWU National Secretary Paul Howes attacked the banks as ''a de facto cartel'' and suggested they be regulated to ensure they pass on each full interest rate cut made by the Reserve Bank.

''It's time we re-examined our banks and put an end to the protection racket that allows banks to record massive profits while sacking staff and gouging customers,'' he said. A condition of a banking licence should be a requirement to mirror the movements of the Reserve Bank.

Mr Howes also demanded the government stop kowtowing to the free trade rules of the World Trade Organisation when competitors were ignoring them.

''We're the nincompoops who … burn important industries on the fires of economic purity for no net benefit,'' he said.

He urged a more interventionist industry policy, saying there was no shame in a government ''picking winners'' by investing in growth industries and promoting exports. Asian governments had shown ''governments should be in the business of industry planning''.

No comments: