Behavioral Benchmark Set By ACCC

Date: 01 June 2000

The Australian community is being asked to accept " behavioral undertakings" made by the Commonwealth Bank in relation to it's merger with Colonial State Bank on the same day that the Consumer competition watchdog is investigating the big banks for alleged pricing collusion on credit card transaction fees.

Media commentators have noted that the ACCC has changed its policy based on the Commonwealth Bank's "behavioral commitments" to keep certain branches open after the merger takes place. This is in spite of the ACCC's investigations of the big banks for alleged price collusion on credit card transaction fees.

"The commitment by the Bank means less than one in ten of the Branches under threat by the merger are saved." Tony Beck, FSU National Secretary said. "The ACCC and Treasurer Costello have given great weight to these commitments but we question what they really mean for ordinary people in the affected communities" Mr Beck said.

"The Treasurer's failure to act in the public interest in the matter of the Commonwealth Bank and Colonial means the floodgates have opened for future mergers. Regional Banking in this country is put at threat by the Treasurers faith in the "behavioral undertakings" by this Bank and his faith is not shared by any other part of the community." Mr Beck said. "The only winner from this scenario will be the banks who will boost their already massive profits".

FSU believes the community is 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.

"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 or Kentucky Fried Chicken demonstrates how out of touch this Government is". "If the Government is not prepared to take responsibility for the impact on services and jobs - who is?" Mr Beck said.

"It is 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. Many thousands of ordinary Australians are supporting the Union' push.

Public commitments are cheap - legal obligations through a social charter will ensure it doesn't matter who you are, certain benchmarks have to be met in the interests of the broader community.

For further information

Contact:	Sharron Caddie
Union:	Finance Sector Union - National Office
Phone:	039 261 5328
Email:	sharron.caddie@fsunion.org.au
WWW:	http://www.fsunion.org.au

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