Plans to guarantee all deposits in Australia are a step closer to becoming a reality, with legislation being introduced to Federal Parliament.
For three years the Rudd government will guarantee all deposits to all local financial institutions, to protect Australians from the global financial crisis.
Treasurer Wayne Swan has told Parliament the guarantee will boost confidence in the local banking sector.
“This bill is historic, and it forms part of the concerted multi national response to the impacts of the global financial crisis.
“Never before has the Australian government moved to protect depositors in the way in which we are doing today.”
Mr Swan has also spent the morning talking up the government’s $10.4 billion dollar economic stimulus package, which has been welcomed by both sides of politics.
The massive rescue package has been praised by both Labor and Liberal MPs arriving at Parliament, who have described it as quick and decisive action which provides relief to the most vulnerable Australians, in particular pensioners.
Mr Swan has spent the morning spruiking the benefits of the package, he's told 2GB’s Alan Jones the lump sum payments are just the beginning of extra support for pensioners.
“We will also be coming forward in the budget with our long term proposals for reform to the pension system.”
Mr Swan says he's confident the extra payments will be spent by pensioners and low income families, but admits the package will take a while to stimulate the economy.
