SPEECH BY THE PRIfME MINISTER,
THE HON, E. G. WHITLAM, MP,
AT THE OPENING OF THE NEW PRINCIPAL OFFICE IN VICTORIA
OF THE COMOi'OWEALTHl BAINKING CORPORATION
MELBOURNE, 8 JULY 1975 ' 1a
* 1
IT IS A VERY GREAT HONOUR TO BE OPENING
THIS SPLENDID NEW BUILDING OF THE COMMONWEALTH BANKS IN
VICTORIA. I HAVE ALWAYS KNOWN THAT MELBOURNE WAS THE GREAT
FINANCIAL AND BANKING CAPITAL OF AUSTRALIA, AT LEAST
THAT'S WHAT THEY SAY IN MELBOURNE, AND AS YOU KNOW.
IN ANY SORT OF FINANCIAL TRANSACTION I LIKE TO GET WITH
THE STRENGTH, OF COURSE MELBOURNE DOESN'T HAVE EVERYTHING
-HER OWN WAY BECAUSE THREE OF THE GREAT BANKS OF AUSTRALIA
INCLUDING THE BIGGEST AND THE OLDEST HAVE THEIR
HEADQUARTERS IN SYDNEY. NEVERTHELESS THERE ARE THREE
SOTHER BANKS WIjTH THEIR HEADQUARTERS IN MELBOURNE.
So THE SCORE IS PRACTICALLY EVEN. CERTAINLY
THIS EXCELLENT EDIFICE, THIS MOST IMPOSING AND GRACEFUL
STRUCTURE, WILL MARK A NEW CHAPTER IN THE LONG
AND SUCCESSFUL HISTORY OF THE COMMONWEALTH BANKS OF
AUSTRALIA, '' r
2a
IT WAS HERE-IN COLLINS STREET, NOT FAR
FROM THIS SITE, THAT THE COMMONWEALTH BANK OPENED ITS
FIRST OFFICE INj 1912., THAT WAS THE BEGINNING OF A
MAGNIFICENT VENTURE, A SUPERB EXAMPLE OF COMPETITIVE
PUBLIC ENTERPRISE THAT HAS BROUGHT ENORMOUS BENEFITS
TO THE AUSTRALIAN PEOPLE. A LABOR GOVERNMENT THE
GOVERNMENT LED BY* ANDREW FISHER -INTRODUCED THE COMMONWEALTH
BANK BILL IN NOVEMBER 1911. LET ME QUOTE SOME WORDS FROM
FISHER'S SPEECH: " A NATIONAL BANK IS A NECESSITY.* IT WILL
DO THE GOVERNMENT' S BUSINESS HERE AND IN,
LONDON-BETTER THAN ANY OTHER BANK COULD DO
IT. TIME AND EXPERIENCE WIL L SHOW HOW ITS
FUNCTIONS MAY BE EXTENDED. WE CAN REST
ASSURED THAT IF THIS PROPOSAL, WHICH IS NEW
IN MANY IMPORTANT FEATURES, IS A SUCCESS,
ALL PARTIES WILL ULTIMATELY LAY CLAIM
TO A SHARE OF THE HONOUR OF HAVING BROUGHT
IT INTO EXISTENCE. earn
3.
FISHER SPOKE WIFH GREAT FORESIGHT OF THE
WAY fHE B A KS' FUNCTIONS COULD BE EXTENDED. CERTAINLY,
1' iIT1 Ox WITHOIJT THE ASSISTANCE OF GOVERNMENTS, THE
BANKS' ACTIVITIES HAVE EX" PANDED. IN 1949 THERE WERE
18 PRIVATE TRADING BANKS IN AUSTRALIA TODAY THERE
ARE 13, INCLUDING THE 7 MAJOR ONES. WHEN THE LIBERALS
CAME TO OFFICE THE COMMONWEALTH BANKS' TRADING BUSINESS
WAS ONE OF THE SMALLEST OF THE AUSTRALIAN BANKS;
WHEN THEY LEFT OFFICE IT WAS THE SECOND LARGEST. THE
SAVINGS BANK IS AUSTRALIA'S BIGGEST INSTITUTIONAL LENDER
FOR HOUSING, SINCE 1964 IT HAS ADVANCED MORE THAN
$ 2000 MILLION TO FINANCE HOMES FOR MORE THAN 300,000
AUSTRALIAN FAMILIES, LAST YEAR IT HAD MORE THAN
7 MILLION ACTIVE . ACCOUNTS WITH A TURNOVER IN TRANSACTIONS
OF MORE THAN $ 16,000 MILLION. THERE IS NO NEED FOR ME
TO WEARY YOU WITH LARGE FIGURES. YOU WILL HEAR ENOUGH
OF THEM TOMORROW. THE POINT IS SIMPLY THAT THE COMMONWEALTH
BANK HAS BECOME THE MOST POPULAR, THE MOST TRUSTED,
THE MOST GENEROUS OF ALL FINANCIAL INSTITUTIONS IN AUSTRALIA.
/ 4
THE GOVERNMENT BELIEVES IT IS TIME
TO DO NOW WHAT ANDREW FISHER ENVISAGED AND EXTEND THE BANK'S
FUNCTIONS TO NEW FIELDS. IT HAS ALWAYS BEEN THE
GOVERNMENT'S POLICY TO ' INCREASE THE COMPETITIVENESS OF
THE COMMONWEALTH BANKING CORPORATION. THROUGHOUT ITS
0 HISTORY THE BANK HAS NOT BEEN PERMITTED TO ENTER THE
HIRE PURCHASE OR FINANCE FIELD. ITS COMPETITORS HAVE
o BEEN UNDER NO SUCH RESTRAINT. MANY OF THEM ESTABLISHED*
H IRE PURCHASE INTERESTS IN THE 1950' s. WE SHALL ALLOW
THE COMMONWEALTH BANKTT O JOIN THE PRIVATE TRADING BANKS
IN AFFORDING HIRE PURCHASE-SERVICES. THIS MATTER HAS BEEN
UNDER STUDY BY THE CORPORATION AND THE GOVERNMENT FOR
SOME TIME# THE GOVERNMENT AND THE BOARD OF THE
0CORPORATION HAVE NOW AGREED THAT COMMONWEALTH BANKS
SHOULD ESTABLISH A FINANCE COMPANY SUBSIDIARY TO BE
OWNED JOINTLY BY THE COMMONWEALTH SAVINGS BANK AND THE
COMMONWEALTH TRADING BANK. THE COMPANY WILL BE IN
OPERATION BEFORE THE END OF THE YEAR. I
THE COMPANY WILL BE PROVIDING SERVICES
SIMILAR TO THOSE NORMALLY AVAILABLE FROM FINANCE
COMPANIES, INCLUDING HIRE PURCHASE, PERSONAL LOANS,
LEASE FINANCING AND COMMERCIAL LENDING. IT WILL ENABLE
THE COMMONWEALTH BANKS TO MATCH SERVICES PROVIDED BY
D OTHER BANKS THROUGH THEIR AFFILIATED FINANCE. COMPANIES
AND PROMOTE FURTHER COMPETITION IN THE BANKING AND
3FINANCE SECTORS1 SHOULD ADD THAT THE PROPOSED FINA NCE
COMPANY WILL HAVE NO ADVANTAGES IN RESPECT TO TAXATION
AND OPERATIONAL ASPECTS COMPARED WITH OTHER BANK-AFFILIATED
FINANCE COMPANIES, IT WILL COMPETE ON AN EQUAL BASIS.
THE ESTABLISHMENT OF THE COMPANY SHOWS THE. GOVERNMENT'S
DETERMINATION THAT THE COMMONWEALTH BANKS SHOULD NOT BE AT
A DISADVANTAGE COMPARED WITH THE OTHER BANKS AND SHOULD
MATCH THE SERVICES OF OTHER BANKS. IT IS THE GOVERNMENT'S
O INTENTION THAT ALL BANK CUSTOMERS SHOULD RECEIVE ADEQUATE
AND COMPREHENSIVE SERVICES AT REASONABLE COST. THE
COMMONWEALTH BANKS PLAY AN IMPORTANT ROLE IN THE PROCESS,
IN THIS CONTEXT, I REMIND YOU OF THE COMMONWEALTH
BANKING CORPORATION'S ANNOUNCEMENT IN MAY THAT IT COULD
ENTER THE TRAVEL BUSINESS, ACQUIRE TRAVEL AGENCIES, AND
PROVIDE FULL TRAVEL SERVICES TO CUSTOMERS.