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Rudd and Tanner surrender on credit card interest rates.



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Thu, 9th October 2008 RUDD & TANNER SURRENDER ON CREDIT CARD INTEREST RATES

The Hon Julie Bishop MP Shadow Treasurer Deputy Leader of the Opposition

The Rudd Labor Government has today turned its back on Australians by refusing to pressure banks to reduce credit card interest rates.

Last week Prime Minister Rudd and Treasurer Swan ran up the white flag on mortgage interest rates and this week they have been joined by Finance Minister Lindsay Tanner protecting the profits of the big banks.

The Prime Minister refused to pressure banks to lower credit card interest rates at a press conference today when he said he expected "maximum pass through".

Finance Minister Lindsay Tanner was asked on radio this morning if he was concerned about reports that the banks have failed to pass on interest rate cuts to credit card holders and he responded, "Credit card interest rates of course typically are quite a lot higher than mortgage interest rates and there has been a pattern in recent times of movements in credit card interest rates not necessarily following those that have occurred with the mortgage rate."

Mr Tanner then told credit card holders it was their problem, "We would just urge people to shop around to get the best deal and of course, to always be wise in how they handle their money. Not get into too much debt on their credit cards".

The Prime Minister, Treasurer and now the Finance Minister have deserted ordinary Australians.

The banks should pass on Tuesday's interest rate cut to credit card holders.

The Coalition will stand up for people with a mortgage, credit card holders and small businesses, in demanding that the banks pass on the full benefit of cuts to the official interest rate.