Westpac’s proposed takeover of rival bank St George would trigger a wave of bank takeovers and lead to fewer choices for Australian borrowers, an inquiry into competition in the banking and non-banking sector will hear in Sydney today.        

The Finance Sector Union, representing 50,000 Australian bank workers, will tell the inquiry the onus is on the Federal Government to ensure that Australian borrowers under pressure from high interest rates and lending fees were served by a strong and competitive finance sector.   

Among the recommendations in the FSU submission:
- retention of the four-pillar policy
- a social audit to be conducted into the impact of bank mergers
- and mandated responsible lending practices enshrined in legislation.

The inquiry will sit as the FSU announced it has secured over 600 signatures of St George shareholders to sponsor a resolution opposing the takeover it will take the bank’s Extraordinary General Meeting in November.

FSU National Secretary, Leon Carter, who will appear before the inquiry today, said that the Federal Government should protect Australian borrowers and the jobs of bank and finance workers by stopping the Westpac’s takeover bid.   

“If the government allows the fifth largest bank in Australia to be taken over then it will be a green light to the other major banks to seize their smaller competitors, costing thousands of jobs across the sector and fewer choices for Australian borrowers,  

“Our message to the Federal Government today is: stop Westpac’s takeover bid and send a strong signal to Australia’s big banks that the interests of Australian borrowers and bank and finance workers will be protected,” 

Eds Note: St George shareholders will be asked to consider Westpac’s takeover bid at its Extraordinary General Meeting in November but a final deal will need the approval of the Federal Government.

Spokesperson:  Leon Carter, 0409 946 597
Media:    Tim Fitzsimmons, 0423 375 522