FED: Govt blocks bank mergers despite nod and wink: Beazley

AAP General News (Australia)
12-08-1998
FED: Govt blocks bank mergers despite nod and wink: Beazley

CANBERRA, Dec 8 AAP - The federal government indicated to the Big Four banks before the
last election that mergers would be allowed, then realised how lowly the banks were regarded,
Opposition Leader Kim Beazley said today.

The Australian newspaper reported the National Australia Bank (NAB) was still negotiating
to merge with another Big Four bank, despite Prime Minister John Howards assurance last week
the four pillars policy would continue until bank competition improved.

"Theres no two ways about it, this government gave a nod and a wink to them before the
last election - wait til after the elections over boys and then well see if theres some
way of accommodating you," Mr Beazley told reporters.

"After the election, of course, they got a bit scared. They suddenly recognised the banks
were not being well regarded as far as the public was concerned.

"Whatever might have been happening with competition in relation to interest rates, it
certainly wasnt happening in relation to bank charges which have been rising and rising over
the course of the last couple of years unchecked by this government in any way, shape or form.

"So the government got a bit of a guilty conscience after the election.

"Well keep the pressure up."

NAB managing director Don Argus told The Australian the bank was entering the final phase
of its campaign to persuade the government to lift the ban on mergers with either ANZ, the
Commonwealth Bank or Westpac.

AAP fh/trm/br

KEYWORD: BANKS BEAZLEY (CARRIED EARLIER)

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