Swan's errors of fact on Westpac / St George

To no one's surprise Wayne Swan has approved the takeover of St George by Westpac.

http://www.abc.net.au/news/stories/2008/10/23/2399637.htm

One reason given was "The St George banking brand will also benefit from Westpac's lower funding costs, helping it to offer lower interest rates on loans."

However a quick check of both bank's websites shows that St George already offers cheaper home loan rates than westpac!

http://webapps.stgeorge.com.au/rates/rates.asp?State=NSW&Category=Home+Loans

http://www.westpac.com.au/internet/publish.nsf/Content/PBHLHCPI+Interest+Rates

Of course they both offer a myriad of options to confuse all but the closest scrutiny, but there they are. The facts.

The takeover of St George by Westpac will reduce competition in the Australian banking industry. Is there anyone who thinks that Westpac will drop it's home loan rates to match St George?

Swannie has got this one wrong. In a few years the name St George will have gone the way of Bank of Melbourne and other small independent institutions offering real choice for consumers.

All is not lost though. The shareholders of St George still need to approve the deal. The mums and dads can still strike a blow for freedom of choice in the marketplace for all of us.

Visit http://www.savethedragon.org.au/ for more information.