TREASURER:

Look, I'm here today because I'm a great believer in the safety and the competitiveness of our regional banks, of our credit unions and of our building societies. Our credit unions, our building societies, our smaller regional banks are a safe option, and they're a very competitive option.  They are supervised, just like all banks, they are safe and I think they provide great competition. So I'd urge all Australians if they're not happy with their financial institution to shop around because there are plenty of opportunities to get a better deal. And that's why in coming days I'll be putting out a banking competition policy which will further enhance the capacities of Australians to walk down the street and get a better. And I think that's really important for Australia, to make sure our banking system is as competitive as it can possibly be and all Australians can have confidence that institutions like credit unions and regional banks are supervised in exactly the same way as our big banks and their deposits are just as safe with credit unions, building societies, and the regional banks as they are with the big banks.

JOURNALIST:

Mr Swan, what bank did you switch from?

TREASURER:

Well I've got a variety of arrangements at the moment. I've got my salary which goes into one of the banks, goes into Macquarie Bank. I've got a variety of arrangements with other institutions. But today, I'm putting my money where my mouth is. I'm out here establishing these accounts and as I go forward I'll look at my options for my other accounts as well because as you know, most Australians have a range of accounts across a variety of institutions. I've decided that I'm willing to establish this account today to demonstrate to Australians the safety of these institutions and over time I'll evaluate all of my options and part of that is to establish this account today.

JOURNALIST:

Have you cancelled any of your accounts out of the Big Four?

TREASURER:

Look, over time I have cancelled accounts with the Big Four. I remember some time ago I cancelled my arrangements with one of the Big Four when they closed my local branch. Today, I'm reopening an account with a credit union. Years and years ago I had an account with a credit union and I've decided this is a very good option for me and of course it's an option for many Australians and what we need them to do is to send a message if you like, if they're not happy with their existing financial institution that they can walk down the road. And that's why better competitive practises are important.

JOURNALIST:

Why did you close your credit union account in the past?

TREASURER:

That's a long time ago. A long, long time ago. But I've decided I want to re-open one today.

JOURNALIST:

(Inaudible)

TREASURER:

Well because I've changed my arrangements. Like all Australians, we do change our arrangements over time and I'm establishing this account today because I think it's good value for me, it's a local office with local staff, just down the road from my electorate office, it's pretty convenient for me, and the value here is good. If you have a look at, for example, the mortgage rates here, and I'm not looking to get a mortgage but if you have a look at the mortgage rates here, they are well below the rates that are being offered for example by the major banks. But what I want to do today it not endorse one particular institution, I want to say that credit unions generally, our regional banks generally, our building societies generally, are safe and they're competitive.

JOURNALIST:

Do you think credit unions have done enough to lure business off the banks over the years?

TREASURER:

Look, I think the credit unions have worked hard in recent years and they're working really hard right now to demonstrate to Australians what a viable option they are – that they're safe and they're competitive. And I think the credit union movement has got more organised in recent times.

JOURNALIST:

Are you encouraging your own family members to sign up to a credit union?

TREASURER: Well I'm encouraging Australians, not just to sign up to one particular institution but to look at all of their options. It may be that there are other options that they want to look at. So my purpose today is not to endorse one particular institution. My purpose today is to say to Australians, there are alternatives in our system and if you're not happy with your financial institution, shop around because you can get a better deal.

JOURNALIST:

Mr Swan, publicly the Federal Government has been saying that Australia should stay the course in Afghanistan while privately expressing serious misgivings. Shouldn't they have been honest with the Australian public?

TREASURER:

Oh I think that what you've seen in terms of our policy on Afghanistan over the last few months has been a detailed discussion with the Australian community about the challenges involved in our commitment to Afghanistan. I mean, that's why we had a full Parliamentary debate about our commitment to Afghanistan. That's why the Prime Minister went to the Lisbon conference, only a few months ago. That's why we have committed to our strategy in Afghanistan, working with all of our allies. That's why we've committed new resources for our troops. We understand that Afghanistan isn't easy – we've said so publicly – and we've had a full public debate about the issues involved with our commitment to Afghanistan.

JOURNALIST:

Mr Fitzgibbon and Mr Rudd have privately expressed pessimism about efforts in Afghanistan and the future there.  What is your personal position?

TREASURER:

Well, my position is that I'm fully committed to our policy, as are all of our Ministers.  But I made this point yesterday in relation to some of the press which stems from WikiLeaks, and the point is this, that when we have these reports which are contained in diplomatic cables you cannot necessarily assume that the content of those reports is accurate or has been taken in its full context and I would make that point again today.  Sure, the media will report these matters and that's fair enough, but the public shouldn't assume that the content of the cables is necessarily accurate or a complete reflection of what occurred in the discussions that those cables purport to report.

JOURNALIST:

But as a senior member of Government, what are your own fears about Afghanistan?

TREASURER:

Well, I participated in the debate on Afghanistan in the House and I outlined what I saw as the major challenges.  Our commitment there is the right thing to do.  Our commitment there however, is challenging and the Government has been very frank about those challenges which is why we had the full parliamentary debate.

JOURNALIST:

Was the Government right to downplay fears about the Chinese reaction to the defence white paper when it was released?

TREASURER:

Well, once again I would make the point that we should not necessarily assume that all of the contents of the leaked cables are accurate, but when it comes to our white paper, our white paper is comprehensive.   It deals with all of our strategic challenges over a lengthy period.  It doesn't focus exclusively on one country.   I think it's a very balanced discussion of how we see the strategic outlook for Australia as we go forward.

JOURNALIST:

Treasurer, on the banking package, are you going to release it early next week so it can be unscrutinised by the Senate committee?

TREASURER:

I've said it will be released in coming days, and I hope there is a very full public discussion and analysis of the package and that includes committees of the Parliament.

JOURNALIST:

Should banks be concerned that they'll need to lift their games?

TREASURER:

Well, I don't think there is any doubt that our major banks have behaved badly in recent times.  The Government, in our first term of office, put in place very significant changes to the competitive regime and we also put in place proposals to support the activities of our smaller banks but we need to do more.  This package will be methodical.  It will put in place the building blocks of a more competitive system, but I would just make the point, there's no silver bullet here.  There's no magic solution that can change things dramatically overnight.  Australia has a stable banking system but we need to make our banking system more competitive and our four major banks do need to understand that Australians will shop around to get a better deal and they'll behave badly if they feel that Australians aren't willing to shop around and to walk down the street to get a better deal.