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Remarks at the opening of the First Branch of Chase AMP Bank Ltd, Sydney



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TREASURER

E M B A R G O

PRESS RELEASE N O . H 9

R E M A R K S B Y T H E T R E A S U R E R , T H E H O N P A U L K E A T I N G , M P , A T T H E O P E N I N G O F T H E F I R S T B R A N C H O F C H A S E A M P B A N K L T D , S Y D N E Y 26 S E P T E M B E R 1 9 8 5

I A M V E R Y P L E A S E D T O H A V E T H E O P P O R T U N I T Y T O O P E N C H A S E A M P B A N K L T D , F O R T H I S IS A N I M P O R T A N T A N D S I G N I F I C A N T O C C A S I O N .

IT IS, O F C O U R S E , A N I M P O R T A N T D A Y F O R A L L T H O S E W H O H A V E B E E N I N V O L V E D . I N E N S U R I N G T H A T T H I S N E W B A N K H A S R E A C H E D T H E S T A G E W H E R E IT C A N O P E N F O R B U S I N E S S .

O B V I O U S L Y IT IS A L S O AN I M P O R T A N T D A Y F O R T H E T W O S H A R E H O L D E R S IN C H A S E A M P B A N K L T D - C H A S E M A N H A T T A N O F N E W Y O R K A N D T H E A M P S O C I E T Y - F O R T H I S IS T H E S T A R T O F A N E W A N D M A J O R B U S I N E S S V E N T U R E .

IT IS A L S O A S I G N I F I C A N T D A Y F O R T H E B A N K I N G C O M M U N I T Y , F O R A N E W I N S T I T U T I O N J O I N S T H E I R R A N K S .

H O W E V E R , T O D A Y M A R K S A P A R T I C U L A R L Y I M P O R T A N T D A Y F O R B A N K C U S T O M E R S - B E T H E Y M A J O R C O R P O R A T E B O R R O W E R S O R I N D I V I D U A L S A V E R S - F O R IT M A R K S T H E S T A R T O F A N E W C O M P E T I T I V E E R A IN A U S T R A L I A N B A N K I N G .

IT IS T H E C U S T O M E R S W H O W I L L B E N E F I T M O S T F R O M T H I S N E W C O M P E T I T I V E E R A .

T H E C H A S E A M P B A N K IS T H E F I R S T T O C O M M E N C E B U S I N E S S O F T H E 16 W H I C H I I N V I T E D L A S T F E B R U A R Y T O E S T A B L I S H O P E R A T I O N S IN A U S T R A L I A .

T H E S E N E W B A N K S , W H I C H I N C L U D E A M O N G T H E I R S H A R E H O L D E R S S O M E O F T H E W O R L D ' S M O S T P R E S T I G I O U S F I N A N C I A L I N S T I T U T I O N S A N D M A J O R A U S T R A L I A N C O R P O R A T I O N S , W I L L P R O V I D E A S I G N I F I C A N T C O M P E T I T I V E B O O S T T O T H E A U S T R A L I A N B A N K I N G I N D U S T R Y .

I N T U R N T H E Y W I L L B R I N G S I G N I F I C A N T B E N E F I T S T O T H E A U S T R A L I A N E C O N O M Y .

IT IS C O M P E T I T I O N T H A T W I L L E N S U R E T H A T T H E D E M A N D S O F B O R R O W E R S A N D I N V E S T O R S A R E B E I N G S A T I S F I E D IN T H E M O S T E F F I C I E N T M A N N E R .

A N D IT IS A C O M P E T I T I V E A N D I N N O V A T I V E F I N A N C I A L S Y S T E M T H A T W I L L C O N T R I B U T E T O T H E F U L F I L M E N T B Y A U S T R A L I A O F I T S E C O N O M I C P O T E N T I A L . ·

A S A L E A D I N G P A R T I C I P A N T IN T H I S N E W C O M P E T I T I V E E N V I R O N M E N T I A M S U R E T H E M A N A G E M E N T O F C H A S E A M P B A N K IN N O W A Y E N V I S A G E T H A T T H E Y W I L L H A V E A N E A S Y T A S K IN F R O N T O F T H E M .

! f?:‘> * v · · v · , ν · · · ? ) 3 Γ· : “ · M V * ‘ ·â– >> ':·'·> v-·'·· . · ·#'.ν·Î½ -V-"· · ' · - ” ' '. ' - . ϊ 'ΐ ΐ ; ■ " < . v.r. -

IN T H E C O M P E T I T I V E E N V I R O N M E N T T H A T T H I S G O V E R N M E N T H A S C R E A T E D I N S T I T U T I O N S W I L L H A V E TO W O R K H A R D TO E N S U R E T H A T T H E Y M E E T , A N D C O N T I N U E TO MEET, T H E N E E D S OF T H E I R C U S T O M E R S .

B U T T H A T IS W H A T C O M P E T I T I O N IS A L L A B O U T , A N D I A M S U R E T H A T T H E NEW A N D E X I S T I N G B A N K S W I L L R E L I S H T H I S C H A L L E N G E .

O F C O U R S E , IN A D D I T I O N TO B E I N G H I G H L Y C O M P E T I T I V E , T HE E N V I R O N M E N T T H A T B A N K S S U C H AS C H A S E A M P B A N K W I L L BE O P E R A T I N G IN W I L L BE ON E IN W H I C H T H E E C O N O M Y IS G R O W I N G A N D E X P A N D I N G .

T H I S G O V E R N M E N T HA S T U R N E D T H E A U S T R A L I A N E C O N O M Y A R O U N D F R O M D E E P R E C E S S I O N TO A P O I N T W H E R E IT IS S U S T A I N I N G O N E OF THE F A S T E S T G R O W T H R A T E S IN TH E W E S T E R N W O R L D .

IT IS AN E C O N O M Y T H A T IS C R E A T I N G NEW JOBS, NEW O P P O R T U N I T I E S A N D S E T T I N G T H E F O U N D A T I O N S FO R E V E N G R E A T E R G A I N S IN T H E Y E A R S A H E A D .

T H I S IS T H E E N V I R O N M E N T T H A T A N Y B U S I N E S S , BE IT A B A N K OR A N Y O T H E R , W O U L D W I S H TO O P E R A T E IN.

T H E T R U T H OF T H A T S T A T E M E N T H A S C E R T A I N L Y B E E N C O N F I R M E D BY T H E L A R G E N U M B E R OF B A N K S T H A T S O U G H T A P R E S E N C E IN A U S T R A L I A W H E N W E A S K E D F O R A P P L I C A T I O N S .

A N D IT H A S B E E N C O N F I R M E D F U R T H E R BY T H E L A R G E N U M B E R OF O T H E R F I N A N C I A L I N S T I T U T I O N S T H A T H A V E T A K E N A D V A N T A G E OF TH E M O R A T O R I U M O F F E R E D U N D E R F O R E I G N I N V E S T M E N T P O L I C Y A N D H A V E E S T A B L I S H E D M E R C H A N T B A N K S U B S I D I A R I E S IN A U S T R A L I A D U R I N G

T H E P A S T 12 M O N T H S .

T H E A U S T R A L I A N E C O N O M Y IS O B V I O U S L Y O N E IN W H I C H O V E R S E A S I N T E R E S T S A R E K E E N TO P A R T I C I P A T E .

O F C O U R S E , T H E E S T A B L I S H M E N T OF T H E N EW B A N K S IS J U S T O N E E L E M E N T OF T H E C O N S I S T E N T P A T T E R N OF F I N A N C I A L D E - R E G U L A T I O N T H A T T H I S G O V E R N M E N T H A S P U R S U E D S I N C E T A K I N G O F F I C E .

U N D O U B T E D L Y T H E M O S T P R O M I N E N T A M O N G T H O S E C H A N G E S W A S T H E F L O A T I N G O F T H E D O L L A R IN D E C E M B E R 1983.

T H A T D E C I S I O N B R O U G H T TO AN E N D TH E O L D R E G I M E OF S E T T I N G T H E E X C H A N G E R A T E W H I C H , W I T H T H E O B J E C T I V E OF S Q U E E Z I N G O U T I N F L A T I O N , L E F T A U S T R A L I A W I T H A N O V E R - V A L U E D E X C H A N G E R A T E W H I C H U N D E R M I N E D T H E C O M P E T I T I V E P O S I T I O N OF M U C H OF A U S T R A L I A N I N D U S T R Y .

T H A T P O L I C Y W A S N O T S U C C E S S F U L EVE N IN ITS O W N T E R M S .

IT W A S N O T S U S T A I N A B L E . T H E G O V E R N M E N T D E C I D E D IT H A D TO GO A N D S W E P T A W A Y W I T H IT T H E W H O L E B U R E A U C R A T I C S Y S T E M OF E X C H A N G E C O N T R O L S .

WE H A V E A L S O P R O G R E S S I V E L Y D I S M A N T L E D A H O S T OF U N N E C E S S A R Y A N D S T I F L I N G C O N T R O L S A N D R E G U L A T I O N S T H A T R E S T R I C T E D T H E F I N A N C I A L S E C T O R .

A N D IT H A S B E E N T H E B A N K I N G S Y S T E M T H A T H A S BEE N T H E M A J O R B E N E F I C I A R Y OF THAT.

S O M E M E M B E R S OF T H E F I N A N C I A L C O M M U N I T Y M I G H T S T I L L H A N K E R FOR T H O S E S I M P L E R E G U L A T E D D A Y S W H E N IT W A S R E L A T I V E L Y S T R A I G H T F O R W A R D TO M A K E A D O L L A R .

B U T I A M S U R E T H E M O R E P R O G R E S S I V E P A R T S OF T HE I N D U S T R Y W E L C O M E T H E O P P O R T U N I T I E S N O W O P E N TO THEM.

W H E R E A S P R E V I O U S L Y T H E N O N - B A N K I N S T I T U T I O N S W E R E T H E D Y N A M I C O N E S AS T H E Y W E R E A B L E TO A D A P T A N D G R O W O U T S I D E T H E R E S T R I C T I O N S OF TH E R E G U L A T I O N S W H I C H C O N S T R A I N E D T H E B A N K I N G S Y S T E M , D U R I N G T H E P A S T 12 M O N T H S T H E P R O C E S S O F F I N A N C I A L D E - R E G U L A T I O N H A S R E S T O R E D TH E B A N K S TO T H E I R T R A D I T I O N A L R O L E OF P R I M A C Y IN T H E F I N A N C I A L S Y S T E M

B U T I M P O R T A N T T H O U G H IT IS, F I N A N C I A L D E - R E G U L A T I O N IS M E R E L Y O N E OF T H E A R E A S W H E R E W E H A V E A T T E M P T E D TO C O R R E C T T H E F U N D A M E N T A L I M B A L A N C E S IN T H E A U S T R A L I A N E C O N O M Y .

IN P A R T I C U L A R , W E H A V E S O U G H T TO E S T A B L I S H T H E P R E - C O N D I T I O N S FOR S U S T A I N E D E C O N O M I C GROWTH.

U N D E R - P I N N I N G T H A T S T R A T E G Y , O U R P R I C E S A N D I N C O M E S A C C O R D H A S R E S T O R E D P R O F I T A B I L I T Y TO T H E C O R P O R A T E S E C T O R .

D E S P I T E T H E R E S U R G E N C E OF H I G H G R O W T H R A T E S , D U R I N G T H E P A S T T W O - A N D - A - H A L F Y E A R S W E H A V E S E E N A P E R I O D OF U N P R E C E D E N T E D W A G E R E S T R A I N T .

A S A C O N S E Q U E N C E , R E A L U N I T L A B O R C O S T S HAVE- B E E N R E D U C E D TO T H E I R L O W E S T L E V E L IN M O R E T H A N 15 Y E A R S A N D T H E P R O F I T S H A R E O F T H E N A T I O N A L E C O N O M Y H A S R E T U R N E D TO ITS H I G H E S T L E V E L S I N C E T H E E A R L Y 1970'S.

T H E S E A R E R E A L A N D T A N G I B L E GAINS.

T H E Y H A V E B R O U G H T A B O U T A F U N D A M E N T A L C O R R E C T I O N T O T H E I M P E D I M E N T S TO G R O W T H A N D IT IS T H E S E C H A N G E S T H A T H A V E U N D E R - P I N N E D T H E S T R O N G E C O N O M I C R E S U R G E N C E A N D H I G H L E V E L OF J O B C R E A T I O N W E A R E N O W E X P E R I E N C I N G .

T H E G O V E R N M E N T ' S T A X R E F O R M P A C K A G E , W H I C H I A N N O U N C E D IN T H E P A R L I A M E N T A W E E K AGO, C O N T I N U E S W I T H O U R C O N S I S T E N T S T R A T E G Y OF I M P L E M E N T I N G F U N D A M E N T A L , S T R U C T U R A L C H A N G E W H E R E IT IS NEED E D .

OF C O U R S E , W E R E C O G N I S E T H A T IN U N D E R T A K I N G A R E F O R M OF T H I S S C A L E IT IS I N E V I T A B L E T H A T W E W I L L BE O V E R - T U R N I N G E X I S T I N G A R R A N G E M E N T S F R O M W H I C H S O M E GA I N A B E N E F I T .

T H I S IS E S P E C I A L L Y T R U E OF OU R A T T A C K ON T A X S H E L T E R S .

B U T IF W E A R E TO E S T A B L I S H A T A X A T I O N S Y S T E M W H I C H S T I M U L A T E S GROW T H , T H E S H E L T E R S A N D C O N C E S S I O N S M U S T BE C UT BACK.

T O O OFTEN, B E N E F I T S OF T H A T N A T U R E E N C O U R A G E T H E P U R S U I T OF L O S S M A K I N G I N V E S T M E N T S R A T H E R T H A N G E N U I N E PROF I T S .

IN D O I N G SO T H E Y I M P A I R TH E O V E R A L L P R O G R E S S OF T H E NATI O N .

F U R T H E R , E V E R Y C O N C E S S I O N I N V O L V E S AN I M P L I C I T S U B S I D Y W H I C H M U S T BE PAID BY T H E G R E A T B O D Y OF T A X P A Y E R S W HO DO N O T H A V E A C C E S S TO T H E S E S P E C I A L B E N E F I T S .

S I M I L A R L Y , T H E E X P L O S I O N O F F R I N G E B E N E F I T S IN T H E A U S T R A L I A N C O M M U N I T Y IN R E C E N T Y E A R S HA S A L L O W E D A S I G N I F I C A N T M I N O R I T Y O F T A X P A Y E R S TO A V O I D P A Y I N G T H E I R F A I R S H A R E OF T A X A T I O N .

A N D IT H A S P U S H E D AN E V E N G R E A T E R P R O P O R T I O N OF T H E B U R D E N O N T O O R D I N A R Y M I D D L E I N C O M E T A X P A Y E R S , M A N Y OF W H O M DO N O T H A V E T H E S A M E O P P O R T U N I T I E S TO A R R A N G E T H E I R A F F A I R S TO E S C A P E T H E I R F A I R L I A B I L I T Y .

I A M T H E F I R S T TO A G R E E T H A T T H E V E R Y H I G H M A R G I N A L R A T E S OF T A X A T I O N T H A T H A V E B E E N I M P O S E D ON T A X P A Y E R S H A V E A C T E D AS A P O S I T I V E I N D U C E M E N T TO T H E T R E N D OF A V O I D A N C E A N D M I N I M I S A T I O N . .

T H A T IS WH Y A M O N G T H E M O S T F U N D A M E N T A L O B J E C T I V E S OF T H I S P A C K A G E H A S B E E N TO R E M O V E T H E H E A V Y H A N D OF H I G H M A R G I N A L I N C O M E T A X R A T E S F R O M O R D I N A R Y M I D D L E I N C O M E A U S T R A L I A N S .

T H A T H A S B E E N A C H I E V E D BY T H E CU T IN T H E T O P R A T E TO 49 C E N T S IN T H E D O L L A R A N D T H E R E D U C T I O N IN T H E I N T E R M E D I A T E R A T E TO 40 C E N T S IN T H E D O L L A R .

F U R T H E R , A N D A G A I N V E R Y S I G N I F I C A N T L Y , W E H A V E T A K E N A C T I O N TO EN D T H E D O U B L E T A X A T I O N OF D I V I D E N D S .

T H I S IS A N O T H E R R E F O R M W H I C H HA S L O N G B E E N T A L K E D A B O U T BU T N E V E R I M P L E M E N T E D IN T H I S C O U N T R Y .

IT W I L L M A K E E Q U I T I E S I N V E S T M E N T A M O R E A T T R A C T I V E A N D R E W A R D I N G P R O P O S I T I O N FO R M I L L I O N S O F O R D I N A R Y A U S T R A L I A N S .

OF C O U R S E , I A M A W A R E T H A T AT F I R S T S I G H T M A N Y O F T H O S E W H O R U N TH E C O M P A N I E S - AS O P P O S E D TO T H E S H A R E H O L D E R S T H A T O W N T H E M - S E E A D I S A D V A N T A G E TO T H E NE W S C H E M E .

T H E T H O U G H T H A S O C C U R R E D TO S O M E OF T H E M A N A G E R S OF O U R C O M P A N I E S T H A T T H E I N C R E A S E D A T T R A C T I V E N E S S OF H I G H E R D I V I D E N D Y I E L D I N G S T O C K S M A Y I M P E D E T H E I R O W N I N T E R E S T S .

Q U I T E O B V I O U S L Y , T H A T M A Y B E T H E C A S E W H E R E T H E M A N A G E R S HA D D E C I D E D T H E Y W O U L D M U C H R A T H E R R E T A I N P R O F I T S T H A N PAY T H E M O U T IN D I V I D E N D S .

B U T IT IS NOT N E C E S S A R I L Y A B A D T H I N G T H A T O U R M A N A G E R S M A Y C O M E U N D E R I N C R E A S E D P R E S S U R E TO G E N E R A T E A N D D I S T R I B U T E P R O F I T S .

T H I S R E F O R M W I L L P L A C E TH E ON U S ON T H O S E M A N A G E R S W H O W I S H TO R E T A I N E A R N I N G S TO E X P A N D T H E I R C O M P A N Y ' S O P E R A T I O N S TO C O N V I N C E T H E I R S T O C K H O L D E R S T H A T T H E Y T O O W I L L B E N E F I T F R O M T H A T C O U R S E OF A C T I O N .

IN SHORT, IT IS A P A C K A G E T H A T W I L L A S S I S T T H E P E R F O R M E R S A N D T H E A C H I E V E R S .

IT W I L L A S S I S T T H O S E W H O C H A S E G E N U I N E T R A D I N G P R O F I T S AS O P P O S E D TO C O N C E N T R A T I N G O N L Y ON G E N E R A T I N G C A P I T A L GAINS.

I B E L I E V E T H A T C A N O N L Y B E A G O O D T H I N G F O R T HE A U S T R A L I A N E C O N O M Y , A N D FOR A L L A U S T R A L I A N S .

T H E N E W BA N K T H A T C O M M E N C E S O P E R A T I O N S T O D A Y HA S A V E R Y I M P R E S S I V E P A R E N T A G E - A L A R G E I N T E R N A T I O N A L BANK, C H A S E M A N H A T T A N B A N K - A N D A D O M E S T I C I N S T I T U T I O N T H A T IS W E L L K N O W N TO ALL A U S T R A L I A N S , T H E A M P S O C I E T Y .

T H E S E TW O E N T I T I E S W I L L B R I N G T H E I R P A R T I C U L A R Q U A L I T I E S A N D E X P E R T I S E TO S U P P O R T T H I S N EW B A N K I N G V E N T U R E .

T O D A Y M A R K S T H E B E G I N N I N G OF AN E X C I T I N G P E R I O D FOR THE A U S T R A L I A N B A N K I N G I N D U S T R Y A N D I AM V E R Y P L E A S E D TO BE A B L E TO O F F I C I A L L Y O P E N F O R B U S I N E S S C H A S E A M P B A N K LT D BY P R E S E N T I N G TO T H E C H A I R M A N OF T H E N EW BANK,

M R D A V I D A N D E R S O N , T H E B A N K I N G A U T H O R I T Y .

I W I S H T HE NEW B A N K TH E V E R Y B E S T FOR T H E F U T U R E .

JOINT MINISTERIAL S T A T E M E N T B Y T H E [MINISTER ASSISTING ■ T H E T R E A S U R E R , M R C H R I S H U R F O R D , - ' A N D T H E MINISTER F O R T R A N S P O R T , M R P E T E R M O R R I S

S U R V E Y O F M O T O R V E H I C L E U S E WILL S E E K I N F O R M A T I O N F O R T R A N S P O R T P L A N N I N G

"Commercial and private motor vehicle owners will be surveyed in October to gather information to help, plan Australia's future road transport and fuel requirements.

"The Survey of Motor Vehicle Use will be conducted by the Australian Bureau of Statistics and cover the 12 months to 30 September this year.

"The results of the survey will benefit all road users.

"Conducted every three years, the Survey is the only comprehensive measure of road vehicle activity on an Australia-wide basis.

"This Survey will update statistical data gathered in 1982.

"Not evdry motor vehicle user will be involved. About 40,000 operators of trucks and commercial vehicles and 15,000 private motorists will be asked to participate.

"The Survey sample has been randomly selected from motor vehicle registration records in each State and Territory.

"Two forms will be used in the Survey -- one for commercial vehicles and one for private motorists.

"Questions will cover the type of vehicle, ownership, type of fuel used, fuel consumption, distances travelled, type of business, and loads carried.

"The Federal Department of Transport requires this information to assess the extent and significance of road transport compared with other means of transport, and to decide what action should be taken to allocate transport resources efficiently.

"Other Federal, State and local government authorities also need the information to forecast future road transport and fuel requirements. ‘

"The information will be treated with strict confidence. Only statistical totals will be published. The results are expected to be released progressively from mid-1986."

C A N B E R R A 26 September 1985