Greens Treasury Spokesperson, Senator Peter Whish-Wilson, commented today on the announcement by the government that they would establish a securitisation fund for small business.
“The Greens welcome the government’s proposal to establish a People’s Fund for small business lending and the government’s change of heart on the role for government in banking.
“Once again, we are flattered that the government is following our lead on banking policy.
“Morrison has taken his first step down the green-brick road towards a People’s Bank.
“Earlier this year we announced a detailed plan to re-establish a government-owned bank to provide more competition and to tackle the issue of profit gouging on interest rate margins.
“The Greens’ proposal for a People’s Bank would utilise Australia Post outlets to offer not-for-profit banking, including mortgage tracker accounts on the risk-free component of home loans.
“When we announced our plan, the then Treasurer, Scott Morrison, said he was “shocked” at the suggestion that there would be a government-owned bank again. [See below for full Morrison quotes]
“We are glad that the government has got past this knee-jerk reaction and sees the need for a greater role for government in banking.
“We also welcome the announcement by the government that it will review capital requirements. The Productivity Commission recently concluded that APRA’s approach to mortgage-risk weights has biased bank lending away from business and towards housing.”
Response of the then Treasurer, Scott Morrison, to the idea of a People’s Owned Bank from the AFR Banking and Wealth Summit (4 April 2018)
“I was shocked that a Victorian would ever suggest that there be a government owned bank ever again. Maybe the South Australians will suggest it as well, certainly not under the new Liberal Government. That was an idea that was deeply discredited by financial experience in this country and god forbid we ever go back to those bad old days.”
“Have they forgotten how many people were injured and hurt and how many businesses were destroyed by the folly of government intervention of that scale? The way to address affordability of loans, the way to address the innovation that is necessary to give customers the products they need is the path we are on – greater innovation, greater competition, freeing up from the shackles that are holding back mutuals and FinTechs and getting capital to those which disrupt and collaborate and provide customers with what they need in the banking sector.”
“It is a very ill considered not surprising idea from the Greens. Let’s just see if Labor back it. The way they are going with taxes and everything else they probably will.”