Page 1001 - Week 04 - Wednesday, 31 March 1993
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The unethical bit is the way it was all tied up. Let us have a look at that. The parents' home, worth $200,000; the business, worth a quarter of a million dollars; the home, valued at $150,000. A total of $650,000 worth of assets is held by the bank to cover a debt of $100,000 for a home and $35,000 for the business. For a total loan of $135,000 the bank holds assets worth $650,000. What is unethical about covering a $135,000 loan with $650,000 in assets? You work it out; I do not have to do it for you.
Madam Speaker, the problem is also that the common person is unempowered to question the bank and access different financial products and is generally uninformed. In this climate the banks are tying up equity obtained - in most cases with after tax dollars - that could be used for investment opportunities. In this way banks are also responsible, as Mrs Carnell said, for dampening the economic climate for investment. Some would say quite categorically that in certain respects the current banking system is parasitical. However, there is hope. Just as consumer trends have forced manufacturers to produce recyclable packaging, phosphate-free soap and lead-free petrol, there will come a day when the public, each individual, will demand a fairer banking system which returns wealth to the country as a whole. That day is dawning - one hopes.
Finally, Madam Speaker, Mr Stevenson mentioned Mr Bruce Miller. Mr Bruce Miller is well known to a lot of us in this house. What happened to Mr Miller? Mr Miller's bank agreed to an overdraft of, I think, $45,000. Mr Miller had a car dealership, and obviously car dealerships are dependent on a good name. When Mr Miller's cheques started bouncing he rang his bank and started to express concern, only to be told then and only then, after his cheque bounced, that in fact the bank had decided not to give him an overdraft of $45,000 as agreed but to give him one of $15,000. It is quite obvious what happened to Mr Miller. He went bankrupt. Ironically, Mr Miller has now been "satisfied". The banks used what they have most of, and that is money, to "satisfy" Mr Miller's concern.
Madam Speaker, I repeat that, just as consumer trends have forced manufacturers to produce recyclable packaging, phosphate-free soap and lead-free petrol, there will come a day when the public and each one of us will demand a fairer banking system which returns the wealth to the country, and hopefully that day is dawning.
MADAM SPEAKER: The discussion is concluded.
CORRECTIONS REVIEW COMMITTEE REPORT - GOVERNMENT RESPONSE
Ministerial Statement and Paper
Debate resumed from 15 December 1992, on motion by Mr Connolly:
That the Assembly takes note of the paper.
MR HUMPHRIES (3.51): The response which the Government has brought down in this matter is, of course, a very significant milestone in the development of what I would call an indigenous ACT corrections policy, a policy which provides for us to have the maximum degree of control over the treatment of prisoners who are sentenced in gaols in the ACT. In that respect, this response has been long awaited, as indeed was the original report entitled Paying the Price.
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