Costello's Merger Decision Condemned

Date: 31 May 2000

Today's decision by Treasurer Peter Costello to approve the merger of CBA/Colonial means "the future of regional banking in this country is in doubt", FSU National Secretary Tony Beck said.

"The Treasurer's failure to act in the public interest in this instance means the floodgates have opened for future mergers. And the only winner will be the banks who will boost their already massive profits".

FSU believes that the community will be disappointed with the decision to allow the CBA/Colonial merger to proceed as it will result in reduced competition and cost the community 4,500 jobs and 300 branch closures.

"The real impact on jobs and customer service needed to be examined, and only the Treasurer had the power to make that happen".

"Banking services are viewed by the community as an essential service. For the Treasurer to claim that banks are no different to a private business like McDonalds demonstrates how out of touch this Government is".

"Notwithstanding Costello's promise that prices, service standards and product range will be protected, we believe the Treasurer has an obligation to apply tougher scrutiny, in the interest of the wider community", said Mr Beck.

"The Treasurer's confidence in the bank's undertakings is naive and not shared by anyone else in the community".

"The assurances given by the Treasurer and the Commonwealth Bank are cold comfort for the communities impacted by the merger, as they are only public statements, not legal obligations" said Tony Beck.

"It's not good enough for the Federal Government and big banks to just say, 'trust us on jobs and services'. This is why the Finance Sector Union is pushing for the Federal Government to introduce a Charter of Community Service Obligations for Australia‚s banks" Mr Beck said.

Colonial shareholders vote on the plan today.

For further information

Contact:	Natalie Dapiran
Union:	Labor Council of NSW
Phone:	(03) 9261 5331

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