Ministerial Statement

MITSUBISHI EMPLOYEES, LENDING INSTITUTIONS

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:08): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.D. RANN: Today, moments ago, the Reserve Bank raised official interest rates for the 12^thconsecutive time. This is a decision, of course, taken by the bank to alleviate the inflationary pressures left to Australia by the previous commonwealth government. It is the legacy of the Howard government to working families and Australian businesses. The Howard government had an undisciplined fiscal policy and squandered the early opportunities of the resources boom. The proof of that is everywhere to see with the infrastructure bottlenecks and serious skills shortages putting pressure on the Reserve Bank to apply the brakes to growth again. I am pleased to see that the Rudd government is applying itself to find longer-term solutions to deteriorating housing affordability for working families.

I now refer to the position of workers who have been made redundant by Mitsubishi's decision to close and who are also mortgage holders.

Mr Hamilton-Smith interjecting:

The SPEAKER: Order! I warn the Leader of the Opposition.

The Hon. M.D. RANN: Early last month I wrote to banks and lending institutions asking that they extend patience and consideration to their customers affected by the Mitsubishi closure. I asked that they consider sympathetically the position of any of their customers who might experience difficulty as a result of losing their position with the company. I also stated that I expected the need for such consideration to be temporary only in light of the strong $85 million assistance package in place, our strong economy with jobs at an all-time high, and the strong expressions of interest from major companies such as BHP Billiton in taking on former Mitsubishi workers.

I am pleased to report to the house that a number of financial institutions have responded positively to this request. I am advised that a number indicated that they had decided to offer a deferment of loan obligations, or other concessional treatment, on a case-by-case basis. One indicated that it had established dedicated contacts for its customers who worked at Mitsubishi and that it would look at options to ease mortgage pressures where necessary. I am advised that another had established a hotline through which concerned customers could speak directly with bank staff about their situation and that it was making available a free financial planning service.

I am pleased that these financial institutions have recognised their corporate responsibilities to South Australia and are prepared to offer a hand up to Mitsubishi workers. I am very pleased with the very strong, positive response from financial institutions to South Australia to try to help out Mitsubishi workers with their mortgage repayments during this difficult time.