Poor David Littleproud. The agriculture minister has been scandalised by this week’s news that ANZ will introduce a new climate change policy that will see the bank take steps towards supporting a net zero emissions economy by 2050.
“Banks are not and should not try to become society’s moral compass and arbiter,” he proclaimed. “The Australian people decide that by who they elect.”
We hate to break this to you, David, but literally no one sees the banks as society’s moral compass. At least not after some of these notable scandals in which their morals were famously missing. Here’s a refresher in case you’ve forgotten.
Child exploitation
If you think putting a net zero emissions test on loans is bad, wait until you hear about how Westpac let its customers pay for child sexual exploitation for years.
Yes, this really happened and most people remember it because it was one of the biggest scandals to come out of the sector in decades.
But if you need a reminder, the bank was caught breaching anti-money laundering and counter-terror finance laws around 23 million times and allowed customers to make payments to people in the Philippines who were later arrested for child sex trafficking and livestreaming child sexual abuse.
Fees for no service
Yes, you could say forcing customers to meet climate change conditions puts pressure on farmers and big construction firms.
But what’s really immoral is charging customers a fee for no service, a real thing that the banks did for years. Royal commissioner Kenneth Hayne labelled the practice “dishonest” and “inexcusable”. We shudder to think what he’d say about the zero emissions test.
Charging dead people fees
Sure, asking that your customers don’t cause irreversible damage to the planet might seem “out of touch” to some.
But do you know what’s really not cool? Charging dead people fees. Three of Australia’s biggest banks — CBA, NAB and AMP — did this, and some even continued the practice after they got caught.
Going after farmers
As agriculture minister, surely you’ve heard of this one? Drought-stricken graziers hit with hefty penalties for defaulting on their loans? Not very moral. It came up at the banking royal commission — you know, the royal commission we had to have into the sector because it had no moral compass? Guess that one passed you by too.
If Littleproud, or anyone else doesn’t like what ANZ is doing, then buy some shares in the company and make your views known at the AGM, just like all the rest of us would have to.
I thought LNP were all for the free market if banks state that they are no longer going to invest in fossil fuels I think it is because they at least see the writing on the wall and it is not a reliable investment unlike Nationals and LNP Feds non vision….how dare government threaten the bank on their decision ..unless we become like China..heaven forbid!
Great article Georgia.
It might also be that it is not financially prudent for a bank to be lending to business customers that are reliant for revenue on selling commodities that have a very bleak outlook.
India can buy new electricity generation from solar and wind more cheaply than from coal right now.
In exactly the same way that the banks might shun coal miners, banks also don’t like lending to our kids when they have 3 casual jobs in the gig economy.
Same issue; uncertain long-term income prospects.
I don’t recall Littleproud complaining about that…
At least he has an appropriate name!
The question is does he invest his own money in coal and gas.?
Of course he doesn’t. This is just playing to base – the ignorant trusting base.
When you think about it, the banks have got little to be proud of either?
Talk about charging dead people – in Australia, unlike the USA, death doesn’t extinguish debts.
It’s about time this was changed too.