Transcript
Senator ROBERTS: My question is to the Minister for Finance, Senator Gallagher. Last week I asked questions about the funding for the deposits guarantee scheme, which was designed to protect the money in the bank accounts of everyday Australians—capped at $250,000 per account, $20 billion per bank and $80 billion total. Minister, when the scheme was brought in, the eligible deposits being protected were $650 billion. According to statement 9 of Budget Paper No. 1 of the October 2022 Labor budget—your budget—eligible deposits are now $1.2 trillion. How can $80 billion possibly protect $1.2 trillion in deposits?
Senator GALLAGHER (ACT—Minister for the Public Service, Minister for Finance, Minister for Women, Manager of Government Business in the Senate and Vice-President of the Executive Council): I think this question goes to some of the concerns that we’re seeing in global financial markets at the moment, and the impact on some banks overseas and some concerns that Senator Roberts is raising about the potential for impact here in Australia. The answer is the same as I gave last week.
Senator Rennick: You don’t know how to count.
Senator GALLAGHER: Thank you, Senator Rennick. Would you like leave to speak to this question or am I allowed to? You’d like to, would you?
The PRESIDENT: Minister Gallagher, address your comments to those opposite through the chair. Senator Rennick, resume your seat.
Senator Watt: Tell us about your Masters in Applied Finance!
Senator GALLAGHER: I know responding to interjections is disorderly, but Senator Rennick’s got verbal diarrhoea, it seems, this question time. He can’t keep it in. As I said last week, this is something the government is monitoring closely. In fact, the Treasurer is being briefed twice a day on what’s happening overseas, and is also being provided with feedback from regulators and from the banking system here. I think it is very good, and I would think that it’s something that this Senate would welcome, that our financial markets and our banking system are well regulated, well led and well capitalised, with good liquidity, and we are not seeing the issues that are being seen overseas. I did undertake, and I’m not sure if we’ve done this, to provide you with a written response to the question that you raised last week. I’ll chase that if it hasn’t got to you, as well as anything further I can provide in relation to the answer I’ve just given.
The PRESIDENT: Senator Roberts, your first supplementary?
Senator ROBERTS: My constituents, as I expressed last week and in the last question, are concerned. Minister, the protected amount is not indexed and, because of inflation, would need to be increased to $380,000 per account and $115 billion overall just to cover the same amount as the scheme did in 2008. Minister, will you increase the caps on the bank deposit guarantee to make up for inflation since 2008?
Senator GALLAGHER: In line with the answer I gave last week, of course the government would respond in relation to concerns that were raised about the operation of our banking system and the impact it was having here. We are not seeing that. I think Australians should be reassured that the Australian banking system is resilient and that all of our banks, as I said, are well capitalised and have strong liquidity coverage. The Treasury and regulators are closely monitoring the situation about potential impacts for Australia—and when I say that, I mean very closely monitoring. I can understand that people watching what has happened with Silicon Valley Bank and Credit Suisse would have raised concerns. I can understand that. The response is that since the GFC and since the banking royal commission there are measures in place to ensure the strong performance of our banking system, and we don’t have any concerns about it.
The PRESIDENT: Senator Roberts, a second supplementary?
Senator ROBERTS: Reviewing the minister’s answers, I have five questions on the guarantee so far. Firstly, the guarantee has not been adjusted for inflation, and so it offers 34 per cent less protection than when it was legislated. Secondly, the guarantee is not funded. There is no money available to implement it. Thirdly, the scheme only covers 7c in the dollar of deposits. Fourthly, the minister has refused to commit to activating the scheme if it was needed. Minister, can you explain why constituents should not conclude, as many have, that the bank deposit guarantee is a fraud and a lie?
Senator GALLAGHER: I don’t agree with that representation by Senator Roberts at all. I have answered the question in a general sense by saying that, if there were concerns as we saw in the GFC, of course the government, and I presume the parliament, would act. The point I’m trying to make is that at this point we don’t have concerns. We do not share the concerns. In fact, we’ve been given very strong reassurance by the regulators, by the banks themselves and by the systems that have been put in place by this place and the other place to ensure that we have a strong, well regulated, well capitalised banking system to precisely insulate from some of the financial instability that we’re seeing elsewhere. Yes, of course, the government would respond if we had to. At this point in time we are assured that that’s not the case.
Hmm Minister Farrell – She didn’t answer the question. She could answer further… ie actually answer the question!!??
IF there were concerns. Are you trying to tell us that australia is in a banking bubble that is not affected by global banking trends? Are you honestly insulting our intelligence to that degree?
Dear One Nation.
There is a very large portion of small businesses, Australian individuals, and families very concerned about their banks, the signed mortgage contract we have with our banks, and concerns how our banks are allowing a changing of the payment agreement and a change of monthly payment that could increase with the new digital currency. Also many have concerns about how in the time period, days ect of the transfer to digital currency, how they will be able to purchase their food, fuel ect if their bank cards can longer draw from their accounts and their cash is no longer accepted for payments.
Things are moving very fast to a fully digital currency payment system but many Australians are very worried. Many are ill-informed and searching for information, that seems lacking to help them understand how the Digital currency Changeover over will affect them and what they need to do to prepare their businesses and family necessities for the full digital currency payment changeover.
Kind Regards
Susan Hadgkiss
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Banking just like mRNA Vaccines are not being used in the Australian Beef and Cattle industry. We are told there are no permitted Animal mRNA Vaccines. Now we are told our Banks are relatively safe.
Considering the Government told us C19 vaxxes were safe and effective. If that’s the case why is it so d*** hard to access deaths and adverse events statistics in Australia. These statistics need to be transparent and freely available to all Australians.
Our Govt continually lies to us yet we are told that theres nothing to worry about. I no longer have faith in the MSM, they are doing nothing but peddling the Govts propaganda. Whereas Social Media reporting has been reliable when using reliable sites.