No amount of tinkering around the edges will solve the banking problem
Today I will focus on the banking royal commission, but beforehand there is a good news item that deserves attention.
It came to my notice through a headline in the Sydney Star Observer, a newspaper for the NSW lesbian, gay, bisexual, transgender and intersex (LGBTI) community which read ‘Daniel Andrews announces Victorian ban on LGBTI conversion therapy’, followed by the quotation from the Victorian Premier “We’re banning these practices forever and for good.” This very positive move to end the iniquitous practice of gay conversion therapy is most welcome.
Announcing the ban at Melbourne’s Pride March, the Premier went one step further by saying that the state government would criminalise LGBTI conversion practices.
This Australian-first ban follows an investigation into conversion practices by the Health Complaints Commissioner (HCC), which found that those subjected to it experienced long-term psychological harm and distress.
A survey of LGBTI Australians conducted late last year found that banning conversion therapy was a top political priority for members of the community.
Co-leader of the Brave Network, Nathan Despott, welcomed the announcement and delivery of the HCC report.
“We are so pleased that the Victorian Government has chosen to adopt a broad response to this insidious movement that has operated undercover in Victoria’s religious communities for decades,” he said.
“The Victorian Government and Health Complaints Commissioner have listened to survivors and taken time to learn about the complexity involved with the ideology and operations of this harmful movement.”
Chief Executive of Equality Australia, Anna Brown, said the conversion movement’s activities have proven to be very harmful, as well as ineffective.
“Telling someone they are broken or sick because of who they are is profoundly psychologically damaging.
“Once again the state government is leading the nation in advancing LGBTI equality, and keeping our communities safe”, she said.
Federally, a motion put forward by Greens Senator Janet Rice urging the government to advocate to states on banning conversion therapy practices in Australia passed the Senate last September. Let’s hope NSW and the other states and territories follow suit very quickly.
Now to the banks. “The Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry report should be a mark of shame for the sector”, wrote Greg Jericho in the Guardian Australia. He’s right.
He’s also partly right when he notes that “The very root of the problem is the profit motive of an industry often charging an egregious amount of money for doing nothing”.
That argument however needs to go a step further by pointing out that the problem is also caused by the political and economic fashion for unregulated capitalism known as neo-liberalism, which has dominated since the Thatcher/Reagan era of the 1980s.
Though its flaws are starting to become more and more apparent we still hear the neo-conservatives of the Liberal and Nationals parties disingenuously calling out for cuts to red tape, which of course is code for getting rid of the regulations that protect the workers and consumers.
The final report of the commission indeed shows quite clearly that the profit motive was at the very root of the problem. Of course, they are all privatised, so driven by nothing but profit.
Hayne charged that “in almost every case, the conduct in issue was driven not only by the relevant entity’s pursuit of profit but also by individuals’ pursuit of gain.”
Unfortunately, the report’s recommendations have not gone far enough. The banking and finance systems need more than a tweak. They need a major shake-up, as Australian Greens Senator Richard Di Natale and Adam Bandt, MP for Melbourne, said last week.
They went on to announce a plan that goes much further than tinkering around the edges of a system that will still be prey to the profit motive.
Under this plan, the Greens will establish a people’s bank that offers basic products at a competitive rate, putting people before profit; break up the banks, by separating retail banking, investment banking and wealth management arms; cap the obscene pay packages that banking executives receive; and replace the weak and compromised ASIC with the ACCC to fight for the rights of banking customers. Now that’s talking.