Bad news for WA

Dear Editor, Am sure your readers will peruse this sad article! Yours sincerely, Edward/Eddie Hwang. Rates rises and low wage growth will be hit to confidence Shane Wright, Economics Editor Perth Now August 31, 2018 2:01AM THE WA and national economies could be put at risk by a cash grab from Australia’s big banks, which are poised to lift mortgage interest rates to protect their bottom lines. As figures show sharp increases in the number of West Australians falling behind on their mortgages, there are warnings the interest rate increase by Westpac — and those expected to follow from the Commonwealth, NAB and ANZ — could do major economic damage, especially in WA. Westpac will lift its mortgage rates by 0.14 percentage points from September 19, adding $49 a month to the repayments on a $400,000 mortgage. It was the first of the big banks to lift rates, though smaller institutions have been gradually increasing rates because of higher international borrowing costs. Prime Minister and former treasurer Scott Morrison said Westpac had to explain its actions, signalling concern about the economic impact. “They have to justify in this environment, when people are really feeling it, why they believe they need to clip that ticket a little harder when people in Australia and their customers are, I think, doing it tough,” he said. Opposition Leader Bill Shorten, campaigning in Perth, told 6PR that the banks should consider slicing their profits and the pay of senior executives rather than pass on damaging interest rate rises. WA Chamber of Commerce and Industry chief economist Rick Newnham said while confidence had been rising among the State’s consumers, cost-of-living pressures were still the biggest problem for shoppers. “A rise in variable home loan rates will put a dampener on WA’s renewed optimism, particularly for West Australian families, given one in five consumers are currently unable to pay their bills on time,” he said. AMP chief economist Shane Oliver said the nation was facing a series of issues which, by themselves, were easily manageable. But a combination of low wages growth, high household debt, falling house prices, the drought and a possible change in Gov-ernment, which could mean changes to negative gearing, could create problems. “By itself we’re talking about a 14 basis point increase but there’s a lot of other things going on, so this could be a problem,” Mr Oliver said. “It gets worse if people think the banks are going to increase their interest rates even more — they start winding back their spending and that will feed into the economy.” The extent of the risks posed by out-of-cycle interest rate increases by the major banks is evident in figures from ratings agency S&P Global. Six of the 10 postcodes in Australia with the highest proportion of people behind at least 30 days on their mortgage repayments are in WA. Six per cent of people in Byford are behind. In South Perth, the proportion has more than doubled to 4 per cent. Other areas with high arrears rates include Beechboro, Safety Bay, Butler, High Wycombe, Maddington, Quinns Rocks and Kalgoorlie.

Angela Merkel

Dear Editor, Am sure your readers woh will keen to perus the article Yours sincerely, Edward/Eddie Hwang. Angela Merkel's political heir 'may bring back' national service By Justin Huggler -7th Aagust 2018 Share on Twitter Send via Email Normal text sizeLarger text sizeVery large text size 0 Leave a comment Berlin: There were calls for a referendum in Germany on Monday after Angela Merkel's likely successor said that she was ready to consider the return of national service. Annegret Kramp-Karrenbauer, who is widely seen as Merkel's designated heir, surprised Germany last week when she said she was open to "very intense" discussion. Angela Merkel, Germany's chancellor and Christian Democratic Union (CDU) leader, left, and Annegret Kramp-Karrenbauer, general secretary of the Christian Democrat Union (CDU). Angela Merkel, Germany's chancellor and Christian Democratic Union (CDU) leader, left, and Annegret Kramp-Karrenbauer, general secretary of the Christian Democrat Union (CDU). Photo: Bloomberg Opinion polls showed more than 55 per cent of Germans support the reintroduction of conscription. But a spokesman for Merkel's government made clear that a return to compulsory military service was out of the question. Instead calls are mounting for a scheme under which young people could choose between a year's military service or some form of social service. Germany ended conscription in 2011 in favour of a professional army but has been struggling to recruit troops in recent years. German Bundeswehr soldiers German Bundeswehr soldiers Photo: AP Troop shortages have become so severe that the ministry of defence recently said it was considering recruiting citizens of other EU countries to make up the shortfall. While a referendum is unlikely, given strict restrictions in the German constitution, a poll released this month found that 55.6 per cent of Germans are in favour of a return to military conscription, while only 39.6 per cent are against. The only party that has come out fully in favour of a return to conscription is the nationalist Alternative for Germany (AfD) and there has been speculation that Ms Kramp-Karrenbauer was trying to entice AfD voters back to the CDU by reopening the debate on national service. Telegraph, LondonA

Re: Zero account?

Zero account?Dear Mr. Lew, Can you let me know as to why my pre-paid account is zero as I have not use my mobile : 0401 685 759 over the past six months? Looking forward to hearing from you soon. Yours ssincerely, Edward Hwang Hon,President Unity Party WA info@unitywa.org Blogger:Bloger Dashboard Twitter.com/unitypartywa Ph/Fax: 61893681884 Protect environment-save trees-use Email. UPWA is the only political party that calls a spade a spade.

Banking Cartel

Dear Editor, We definitely agree that the chief RBA chief and Chief Banking Ombudsman Tregillis are both doing an excellent job. Yours sincerely Edward/Eddie Hwang Blogger: Bloger Dashboard Behaviour of banks has been appalling: RBA chief Philip Lowe Shane Wright, Economics EditorThe West Australian Saturday, 18 August 2018 8:01AM RBA's Lowe Sees Rates Steady `For a While Yet' Australian central bank chief Philip Lowe said interest rates are likely to remain at a record low "for a while yet" while lamenting the local currency's resilience. Reserve Bank governor Philip Lowe has demanded the nation’s banks look after their customers’ needs rather than swell their own pay packets, labelling revelations out of the royal commission as appalling. Dr Lowe, giving evidence to a parliamentary committee, backed the commission as necessary “disinfectant” for the clear failings of the nation’s banks. The commission has spent the past fortnight focusing on the superannuation sector with revelations of fees being taken from dead customers, conflicts of interest within banks and of delays moving customers to low-fee superannuation funds. Dr Lowe said some of the revelations had gone to the heart of banking, eating away at public trust in them. “I’m incredibly disappointed and in many cases I have been appalled at the behaviour that has come out of the royal commission,” he said. Dr Lowe said the commission had revealed major dysfunction in the remuneration systems within banks. He said that rather than acting in the best interest of clients, banks instead sought to look after themselves and the financial benefits flowing to senior executives. “Top of mind has been maximising financial returns and that is very problematic,” he said. “We need to rebuild trust and we need to have a very strong focus on delivering service rather than sales.” The royal commission was only ordered by Malcolm Turnbull after rebel MPs threatened to start their own inquiry. Both he and Treasurer Scott Morrison argued a royal commission would undermine confidence in the banking sector. But Dr Lowe said he had no issues with the commission, arguing it had been a force for good. “Sunlight is acting as a very good disinfectant here and we need this disinfectant and it is actually working,” he said. “The community is getting a better understanding and will get better outcomes in the financial sector as a result of this.” Opposition financial services spokeswoman Clare O’Neil said Dr Lowe’s comments showed the importance of the royal commission. TOPICS