Federal Treasurer Criticizes Bank Fees Comments

Australian banks were criticized by the federal Treasurer, Mr Willis, over charges made by the ANZ Bank's chief executive, Mr Don Mercer. Mr Mercer suggested that banks needed to increase fees due to rising transaction costs, a claim he later said was taken out of context. This exchange comes as banks face a deadline for responses to recommendations for fairer fees from the Prices Surveillance Authority.

Key Takeaways:

• Federal Treasurer, Mr Willis, criticized comments made by ANZ Bank's chief executive, Mr Don Mercer, regarding bank fees, calling them an "aberration or a sick joke."
• Mr Mercer suggested that banks needed to increase fees due to rising transaction costs, although he later claimed to have been quoted out of context.
• The statements come as banks face a deadline for responses to recommendations for fairer fees from the Prices Surveillance Authority.
• Resource projects worth $10.7 billion are committed or under construction, including a $1 billion extension to the Boyne Island aluminium smelter and a $480 million oil field development in Western Australia.
• The majority of the investment surge in Australian resources is being financed with foreign capital.

Statistics:

• $10.7 billion: The value of resource projects committed or under construction.
• $1 billion: The cost of the extension to the Boyne Island aluminium smelter.
• $250 million: The cost of the copper and gold mining project in New South Wales.
• $480 million: The cost of the oil field development in Western Australia.
• 90%: The proportion of investment surge in Australian resources financed by foreign capital (estimated).

Sources:

• The Australian Financial Review,
• The Sydney Morning Herald,