The Conservative loons over at the Institute of Public Affairs (IPA) have lobbied federal MPs to oppose the Turnbull Government’s 0.06% levy on big bank liabilities, claiming it amounts to “quasi-nationalisation” that will undermine the “free enterprise system”. From The Canberra Times:
The Institute of Public Affairs, often considered a breeding ground for conservative MPs, says the levy will discourage investment in Australia and its costs will inevitably be borne by investors and customers of the big banks.
“The government’s proposed changes will undermine the free enterprise system by effectively turning banks into an arm of the bureaucracy,” a briefing note on the levy says…
“The government’s proposed changes to the banking sector should be abandoned. The changes are illiberal, amount to the quasi-nationalisation of the major banks, and will permanently reduce economic growth,” the briefing paper says.
Given the IPA are such big fans of the “free enterprise system”, then they must also oppose the estimated $5 billion in annual taxpayer subsidies provided to the banks, which the 0.06% levy is designed to partially recover? Or is the hypocritical IPA happy for the banks to continue to receive this public support without paying for the privilege?
Arguing that the Australian banks operate in a “free enterprise system” is beyond a joke. The banking system is a regulated cartel whose exclusive license is granted by the government.
If anything, the 0.06% levy should be raised to roughly triple the proposed level, given the big banks enjoy an estimated 20bps to 40bps funding advantage because of the government guarantee, according to the RBA.
The IPA is better off supporting this and free health care because with arguments like this internment is right around the corner.
