Tasmanian-based MyState Bank is launching a new program to assist clients to purchase their first lettuce.
Using a mobile phone app, savers will have a portion of their salary deducted and go into a special lettuce savings account.
According to MyState Chief Loans Officer Kosta Motza, the initiative is being rolled out due to customer demand.
“A lot of people have been telling us how expensive produce is, particularly in relation to stagnant wages,” he explained. “Lettuce affordability is becoming a major problem. Scarcity is part of it, but it’s not the full story. It’s a difficult market.”
Motza said it was a source of pride that the bank was helping young Tasmanians toward their dream of having a lettuce of their own.
“As I said, it’s tough these days to get a tong in the salad bowl.
But if you persevere steadily with your Just BeCosTM Savings Plan, you’ll one day be able to the join the ranks of first lettuce buyers.”
Economic analysts suggest that the Reserve Bank may continue to raise interest rates to try to rein in inflation, thus putting further pressure on the sector.
“Banks are in a difficult position and will likely pass on those rate hikes to their customers, thus increasing basic lettuce loan rates,” observed Motza.
Meanwhile the state government has been unable to make significant inroads into the public lettuce waiting list. According to latest data provided by the government services dashboard, the new applicants are having to wait at least 80 weeks for a basic romaine, and up to 135 weeks for a family-sized iceberg.
“The problem is an ideological one,” commented one market garden policy analyst. “The government fundamentally doesn’t want to ‘damage’ what is a very lucrative market for private lettuce growers. They claim they are trying to grow as much lettuce as fast as they can, but the harvest figures don’t lie. They reality is that they are just flogging a damp tea towel in the salad spinner.”
