AAP General News (Australia)
12-09-2011
FED:Editorials Friday December 9, 2011
SYDNEY, Dec 9 AAP - A battle could be on the horizon between the big banks and the federal
government, the main editorial in the Herald Sun says.
The big four banks held off passing on an interest rate cut to consumers this week
after the RBA lowered its rates.
The main editorial says the banks are increasingly deciding to not pass on lower rates
- or are passing on a smaller percentage.
Any concerted action by the banks in this way, the editorial states, will encourage
the federal government to pass on a super tax that will drain the big four's deep pockets.
"This is already being discussed by a working group, but poses dangers for the government
as well as the banks and investors," the editorial says.
"How the tax is applied is likely to prove a minefield," it said.
"But any
new financial regulations based on the enormous superannuation and shareholder
wealth the banks hold pose serious concerns.
"Shareholders as well as bank customers could be hurt."
The Sydney Morning Herald's editorial also focuses on the recent cut in official interest
rates. The paper says the big banks are finally moving. ANZ was the first to pass on the
Reserve Bank's 0.25 percentage point interest rate cut. The others have followed. No wonder
Wayne Swan has sounded increasingly shrill this week.
The Reserve is shifting its cash rate down, responding to worldwide jitters as the
euro zone countries struggle to solve their budgetary problems. It should be good news
for consumers - more dollars in mortgage-belt pockets to spend over Christmas and all
that.
But the paper says the Treasurer is starting to get hoarse as he bellows at Australia's
small herd of banks to get them moving in the right direction. Many consumers will agree
with his message.
What would help here is a little more openness and transparency from the banks. They
rarely explain their position in detail, relying on Delphic references to overseas borrowing
conditions to explain their otherwise inscrutable interest rate decisions. What are these
overseas borrowing conditions and how much more are they paying for the funds they lend?
Bank bashing - whether by politicians or the public - is fairly pointless because banks
make their decisions based on their circumstances. But it is the sort of thing the powerless
and those kept in the dark tend to do.
So far as we are aware, no biologist has ever dissected and properly analysed a Grinch,
says The Daily Telegraph in its editorial.
It would be a fascinating exercise, because these creatures possess a range of genuinely
unusual abilities.
Some of these abilities were hidden until yesterday, when it was revealed that Grinches
can undergo a process of metamorphosis whereby they magically convert into cuddly Santas.
Such was the transformation completed by ANZ and the National Australia Bank, two definite
Grinches who decided - after three days of consideration - to pass on the full 25 basis
point Reserve Bank interest rate cut to their no-doubt grateful customers.
Following these steps by firstly the ANZ and then only hours later by the NAB, Australia
was a two-Grinch town. Then, very late in the day, the Commonwealth Bank and Westpac joined
in. Santafication is very contagious.
The paper says the banks have given up a minor negative for the greater positive of
enhanced public goodwill.
Also, the banks can be assured that their decision is the correct one from a coldly
financial point of view. They will retain business, and most likely increase it. The decision
boosts consumer confidence just as we launch into one of the most intense trading periods
of the entire year.
Now it's time to spend.
Victoria's shortcomings in emergency management must be fixed before the next disaster,
says the main editorial in The Age on Friday.
The state government is now sitting on several major reports and reviews into disaster
management and recovery since the 2009 Black Saturday fires, which killed 173 people.
The latest review, conducted by former police chief Neil Comrie, was released this
week and made 93 recommendations into the handling of last year's devastating floods.
But the government must act now to prevent these reviews and reports from going to
waste, the editorial says.
"While the government naturally wishes to protect its budget, and agency fiefdoms may
present obstacles, the human and financial costs of the fires and floods offer irresistible
arguments for sweeping changes to protect Victorians from the next disaster," the editorial
says.
The Courier Mail says Queensland Premier Anna Bligh and her ministers will no doubt
have received the latest Somerville report into the state's electricity distribution system
with a collective sigh of great relief.
Here at last was some good news on the power price front. Daryl Somerville, whose 2004
landmark report into the state's shaky electricity network sparked a $12 billion investment
program that sent electricity bills soaring, has now declared it is time to slash spending
and concentrate on being efficient.
State-owned Energex and Ergon have already quickly identified a potential $1.5 billion
in savings under the more relaxed regulatory regime proposed by Mr Somerville.
The electricity distribution companies could be vastly more efficient with the way
they spend our money. Back in 2004 the Government needed to take drastic action to restore
stability to a network that had been badly neglected and for years treated as a hollow
log by government.
It accepted Somerville's recommendations for rigid rules requiring Energex and Ergon
to duplicate infrastructure to ensure a reliable supply. But once a satisfactory level
of stability was reached, the Government should have quickly made efficient spending the
priority instead of having to be spurred into action by political pain and a looming state
election.
AAP msk
KEYWORD: EDITORIALS
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