Mr LLOYD(10.53 p.m.) —Firstly, in response to the member for Dobell (Mr Lee), obviously I will be supporting the need for the Green Corps on the Central Coast. There are other initiatives which are happening on the Central Coast. Only last week, under the coast care and dune care initiatives, I announced five separate projects in my electorate to help with the regeneration of our environment on the Central Coast. So the government is doing something about the environment on the Central Coast. I certainly will be pushing for additional Green Corps funding, as well as supporting the member for Dobell in that initiative.

Tonight I want to raise my concerns about interest rates, particularly high business loan overdraft rates. Home loan interest rates have continued to fall by up to 2½ per cent since the coalition took office less than 12 months ago, to the lowest levels in 30 years, creating massive savings for families and first home buyers in the range of $188 per month. Coupled with continued low inflation and sound economic management by our govern ment, most Australians can look forward to 1997 and beyond with optimism and confidence.

However, I wish to raise my concerns over business interest rates. Whilst banking deregulation has seen intense competition in the home loan market, business interest rates have remained unacceptably high. During 1996, we saw the major banks announce massive profits. On 12 November last year, Westpac announced a net annual profit of $1.13 billion. On 20 November, the ANZ Banking Group announced, according to the Canberra Times, a dazzling, higher than expected profit of $1.116 billion for 1995-96. The National Australia Bank also released a record net profit of $2.1 billion. Even the St George Bank released a 1996 net profit of $148.3 million—a rise of nine per cent over 1995. I understand that these financial institutions have obligations to their shareholders, but I also believe the major banks have an obligation to pass on reductions in official interest rates to the small business sector.

Whilst home loan interest rates have fallen to levels that we have not seen in this country for 30 years, business and personal loans remain high. Businesses are still burdened with interest rates of 14 per cent or higher, with penalty rates of up to 17 per cent if you should exceed your overdraft limit, even for one day. In addition, many banks have now introduced increased charges; for example, $15 for each and every cheque that is cashed while the business account remains in excess of the approved overdraft limit.

For 13 years small businesses suffered under a Labor government that had no idea how to run the economy—a government that presided over record interest rates and unacceptably high levels of inflation. Thousands of small businesses were destroyed by the recession that we had to have. Thousands of families were destroyed, dreams shattered, lives shattered. Only now can small business begin to invest with confidence in the sound economic environment of consistently low interest rates and low inflation. Major banks must begin to offer more competitive loans for businesses and examine some of their many charges and fees which are a disincen tive to invest, to expand and, most importantly, to create jobs.

My electorate of Robertson on the New South Wales Central Coast relies heavily on small business. We have few major employers, but we have a vital economy with new businesses opening up every day. Robertson is the fastest growing electorate in New South Wales and the seventh fastest in Australia. We need the banks to get off the back of small business and to pass on the falls in official interest rates not only to home loans but to business overdrafts as well.

The government's efforts to revitalise small business are being stifled and blocked at every corner by the attitude of the major banks: by their never-ending increasing fees and charges, by their unwillingness to pass on realistic lower interest rates, and by the distinct change in attitude that has occurred in relation to customer service by the major banking organisations over the past decade. It would appear that the banks are preoccupied with profit, preoccupied with forcing customers to use electronic and telephone banking services and preoccupied with the reduction of branches and staffing levels.

Another negative by-product of this attitude is the lack of savings incentives, particularly for young people. Australians have a dangerously low level of savings, and yet the big brother, standover attitude that is often experienced when young people attempt to open savings accounts is hardly conducive to creating increased savings habits. There is something drastically wrong when you receive three per cent to save and yet are charged 15 per cent to establish a business investing in the future of this nation and creating jobs for all Australians. This cannot be allowed to continue.