PM, Labor ministers stick with big four banks

Julia Gillard and senior ministers continue to bank with the big four, despite criticising their interest rate hikes and advising unhappy customers to switch.

Image: Prime Minister Julia Gillard holds Westpac mortgages for her home in Altona and her Canberra investment property. Picture: Herald Sun

Customers reacted angrily when Westpac and ANZ raised rates last week to slug the average borrower up to $240 extra a year.

Economists believe the NAB and Commonwealth Bank will follow suit, with both refusing to rule it out yesterday.

The Government has acknowledged customers are angry and has made it easier for home owners to switch banks to improve competition. It has often told customers to walk if unhappy.

But a search of pecuniary interests shows the Prime Minister and 11 of her ministers are happy enough.

Ms Gillard holds Westpac mortgages for her home in Altona and her Canberra investment property.

A spokeswoman for Ms Gillard said banking was an individual choice.

"Every Australian with a mortgage needs to make a decision that's in their best interests, as people have different factors to consider when selecting a loan that's right for them," she said.

Finance Minister Penny Wong and Financial Services Minister Bill Shorten both have loans with the ANZ.

Treasurer Wayne Swan, who has been scathing of interest rate rises outside the official cycle, is among MPs who own their homes.

Opposition Leader Tony Abbott holds his home loan with Adelaide Bank, after switching from the Commonwealth Bank in 2010.

But all bar one of his shadow ministry have their mortgages with the big four.

AMP chief economist Shane Oliver said that Australians were reluctant to change.

"It probably is worth shopping around, but experience shows people tend to stay with the big four banks," he said.

"The increases from the higher rates aren't huge, but for people already facing lots of other costs, it's just another pressure on household budgets."

ANZ and Westpac blamed increased funding costs for the decision to claw $50 million in extra revenue a year.

It followed the Reserve Bank of Australia's decision on Tuesday to hold interest rates.

By Jessica Marszalek and Jane Harper Herald Sun

Paolo commented on 15-Mar-2012 10:32 AM

Key mental hatelh practitioners called this policy a scattergun approach today noting that it delivers on specific programs but otherwise doesn't address years of funding neglect from government. It really does appear that the ALP just doesn't give a shit.
I don't know who their advisers are on mental hatelh policy but I'll state right now that they ought to be given the arse if they couldn't get the PM to focus on mental hatelh issues as a total package. Beyond griping about lack of funding what really rankles
is the sheer injustice of underfundsing and neglecting the immense human suffering of people with mental illness among whom, I'll add for emphasis, is every single voter or potential voter given that the data shows that everyone will have one mental illness
episode int he course of a lifetime. Fark, its a Dickensian attitude.

Comment

Was this helpful?
No Very

Name (optional)

Website (optional)

Email Address (optional)

Please fill in the text in the image in the box below

Comment (optional)