LibertyWorks gave evidence to the Senate Select Committee on Lending to Primary Production Customers in Canberra on Monday 18 Sept 2017. Like many Australians, we have long been concerned that the banking system is a government protected oligopoly where competition is limited and heavily regulated. This has resulted in poor outcomes for bank customers and crony-capitalist “super profits” for the banks; profits our federal government now dips into specifically to fund an expansionary government agenda.
At the hearing, LibertyWorks economist Darren Nelson made the following recommendations:
- By October 2018, complete a Royal Commission into the regulatory drivers of central banking, fractional reserve banking and banking cartelisation… with the aid of an Australian National Audit Office (ANAO) ‘blue team’ and an Austrian School free market ‘red team’; and
- by October 2019, legislate for a comprehensive reform agenda focusing on removal of regulatory barriers to sound money, free banking and banking competition … with the aid of a Productivity Commission (PC) ‘blue team’ and an Austrian School free market ‘red team’; and
- by October 2022, complete the comprehensive reform agenda including National Competition Policy (NCP) style compensation and transition payments … with the aid of a National Competition Council (NCC) ‘blue team’ and an Austrian School free market ‘red team’.
Our recommendations are ambitious but we are highly confident that the suggested reforms will not only restore accountability, integrity and fairness to rural banking in Australia but will also be a catalyst to far greater stability, competition and innovation for the entire Australian economy for not only this generation but for many to come.