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Opposition reaction to the Reserve Bank's decision on non-callable deposits



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TREASURER

EMBARGO

STATEMENT BY THE TREASURER, THE HON P.J. KEATING MP

OPPOSITION REACTION TO THE RESERVE BANK'S DECISION ON ΝΟΝ-CALLABLE DEPOSITS

I welcome the endorsement of the Shadow Finance Minister, Senator Stone, of yesterday's decision by the Reserve Bank to pay a more market related rate of interest on non-callable deposits.

Senator Stone said on the ABC AM program this morning:

"No, of course we wouldn't scrap yesterday's decision because, as you yourself pointed out, it does take the regime of, in relation to these non-callable deposits, somewhat closer to a market regime."

Senator Stone's remarks stand in contrast to those of the Shadow Treasurer, Dr Hewson, who has attempted to portray yesterday's measure as reregulation of the banking system.

Dr Hewson's position can only be interpreted as meaning he would have been happy to let bank customers continue to incur the penalty of the low rate paid on NCDs, with the result that bank home loan rates would have risen to 18 per cent.

Of course, there is nothing unusual about Dr Hewson and Mr Stone having differing views.

As the "meretricious player" in John Howard's office in the early 1980s, Dr Hewson frequently crossed John Stone.

On this occasion the former Secretary of the Treasury has proved a more able judge of the import of this banking reform than has his old rival for the ear of John Howard.

CANBERRA 29 September 1989

COMMONWEALTH

PARLIAMENTARY i .8RARY Μ ’ Ό Λ * '