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Begging for their own money.



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MEDIA RELEASE

Senator Sue Boyce Liberal - Queensland

Electorate Office: Level 9, 301 Coronation Drive, Milton, Qld

Telephone: (07) 3510 3100 Facsimile: (07) 3510 3111

MEDIA RELEASE

FOR IMMEDIATE RELEASE 28 NOVEMBER 2008

Begging for their own money

More than 100 Australians have been forced to beg for their own money because of the Rudd/Swan's Government's uncapped bank guarantee, Senator Sue Boyce, Senator for Queensland, said today.

ASIC told the Joint Parliamentary Committee on Corporations and Financial Services hearing today that there had been 110 applications from 'entities' seeking an exemption under the hardship provisions from the freeze on redemptions from non-bank institutions.

The Inquiry was told most applications by mortgage trusts on behalf of their customers were seeking between $50,000 and $100,000.

Funds held in mortgage trusts and similar non-bank institutions were frozen to prevent a run of redemptions following the Government's ill thought-out plan to offer an unlimited guarantee on bank deposits.

ASIC Chairman, Mr Tony d'Aloisio, told the inquiry that it was "early days" in regard to the level and type of redemptions sought.

ASIC has undertaken to provide information on the exact number of applications under the hardship provisions, the number met or rejected, and the timeliness of ASIC's response to each one.

"It's unbelievable that Australians who had sensibly provided for their own retirement are put in the position of having to beg to get access to their own money, of having to prove they are 'needy enough'," Senator Boyce said.

"Self-funded retirees have every right to be disgusted by the indignity they have suffered as a result of the inexperience of the Rudd/Swan Government," Senator Boyce said.

 

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Media contact: Yasmin Khan on 0419 025 510 or (07) 3510 3100