Page 404 - Week 02 - Wednesday, 10 February 2021
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
ASIC found that payments to schools for implementing school banking programs incentivise schools to encourage greater participation in the programs. It found that young children are vulnerable consumers and are exposed to sophisticated advertising and marketing tactics by school banking program providers, and that school banking program providers fail to effectively disclose that a strategic objective of these programs is customer acquisition.
All of those elements, obviously, are of concern, and that is what has led to this debate here today, following a whole series of media reports, and debate in other jurisdictions as well, including Victoria.
The Commonwealth Bank, as has been highlighted, is the only major bank to provide a school banking program. It first initiated that in 1931. That is called the Dollarmites Club, and it is a big driver of dominance, and of it being the largest bank in the retail deposit market. The Commonwealth Bank has been running that Dollarmites program across the nation. I thank the minister for providing the specific figures for the ACT. Within Australia, it has 175,000 out of a total of about 180,000 school banking accounts, which is a 97 per cent share of the market—a significant amount.
I had an interesting interaction with Ms Le Couteur, who often railed, along with her Greens colleagues, about the Commonwealth Bank. I saw her popping out of a Commonwealth Bank branch one day. I noted the irony that someone that was so opposed to big banks, and potentially the Commonwealth Bank, would be banking there. She said, “I’ve been banking here for a long time.” If I recall the conversation, she said, “Since I was a primary school child.” So there you go, Mr Assistant Speaker; perhaps not all of the Greens are as distraught at this. If you look at Ms Le Couteur’s register of pecuniary interests in previous terms, you will note that she is probably a pretty savvy investor. Anyway, I digress; I will move on.
Mr Rattenbury: Relevance, Mr Hanson?
MR HANSON: The relevance is the use of the Dollarmites program, Mr Rattenbury, and perhaps the contradiction and hypocrisy of certain members of this place in raising some of these issues. But I will not go into more detail about members who say one thing and do another at this stage. I will leave that for another day.
Certainly, there has been significant public debate on this matter. I note that the CEO of consumer group CHOICE said that the programs are “nothing more than marketing schemes”. The Commonwealth Bank has also made public statements. Without necessarily agreeing with what they say, I will put those on the public record:
While we acknowledge some of the findings, we do not believe they are entirely consistent with international research or our own, and we do not agree with the overall assessment of school banking programs.
Certainly, within the student and parent body, and indeed in schools and P&Cs, there are mixed views. My office spoke to the ACT Council of P&Cs this week to discuss the issue. There is no unanimous view one way or another. Here is one quote from the
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video