State Major Bank Levy

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:38): My question is again to the Treasurer. Does the Treasurer have any modelling to prove his claim that a differential state bank tax will not raise the cost of borrowing for businesses or the government in South Australia?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:38): I do enjoy this report that has been published today. It is worthwhile reading. It is called 'Bank levy on South Australia: doing as the Treasurer says, doing as the Treasurer does.'

Members interjecting:

The SPEAKER: The member for Kaurna is called to order, and the leader is warned.

The Hon. J.W. WEATHERILL: Let's—

Mr Marshall interjecting:

The SPEAKER: The leader is warned for the second and final time.

The Hon. J.W. WEATHERILL: Let's just grapple with the analysis rather than the abuse. Bank levies are common in other countries, particularly in Europe. There are at least—

Mr Marshall interjecting:

The SPEAKER: The leader has been warned twice.

The Hon. J.W. WEATHERILL: Bank levies are common in other countries, particularly in Europe. There are at least 14 countries in Europe which imposed bank levies—

Mr Knoll: From the front page of the Green Left Weekly or something.

The SPEAKER: I call the member for Schubert to order.

The Hon. J.W. WEATHERILL: —after the GFC on the advice of the IMF—that left-wing organisation, the IMF. The IMF recommended a maximum levy of 20 basis points so, even with the South Australian move, the combined total of state (0.36 basis points) and federal (six basis points) is less than a third of the IMF's recommended safe maximum. We also see the observation within this report that the way in which the calculation has occurred of the bank levy is that it's essentially identical to the federal levy, because the 6 per cent of—

Mr Marshall: No, it's not, because it's a differential state tax and we are at a competitive disadvantage to every other state in the commonwealth.

The SPEAKER: The leader, if he makes another utterance outside standing orders, I will have to remove him from the house under the sessional order, and I am reluctant to do that for reasons I have previously stated. The Premier.

The Hon. J.W. WEATHERILL: The South Australian bank levy is $3.60 in every million dollars of bank liabilities—$3.60 in every $1 million worth of bank liabilities. The conclusion has been reached that the bank levy simply cannot deter investment in South Australia as it's levied on a proportion of the bank's national liabilities. This is the analysis of those opposite: the banks will forgo $100 worth of profit to save 0.3¢. That's the analysis that those opposite are actually making. So, the rational and profit-motivated bank sector—and please don't tell me they are anything other than that, please, with 387 jobs being lost in just Westpac alone and 21 branches closing, eight with reduced hours mainly in all of the electorates of those opposite—

The Hon. T.R. Kenyon interjecting:

The SPEAKER: The member for Newland is called to order.

The Hon. J.W. WEATHERILL: So, if they consult their own country towns about this, they will understand about the banks' commitments in relation to profitability. Are we seriously suggesting that banks would put $100 worth of profit at risk to save a third of a cent? I don't think so. I think they are going to make self-interested rational investments in their own economic interest. Those opposite who are simply doing the banks' bidding, who are simply owned lock, stock and barrel—the Liberal Party of South Australia is a wholly owned subsidiary—

Mr Pisoni interjecting:

The SPEAKER: The member for Unley is warned.

The Hon. J.W. WEATHERILL: —of the five major banks.

Members interjecting:

The SPEAKER: The member for Hammond is warned and the member for Schubert is warned for the second and the final time.