A case for postal banking in “Taking on the banks: The truth about the Australia Post Cartier watches affair”

“Taking on the banks: The truth about the Australia Post Cartier watches affair” (Citizens Insight / Australian Citizens Party, 19 February 2021)

In this video, the Australian Citizens Party makes a strong case that the Australian government’s sacking of Christine Holgate as CEO of Australia Post for awarding senior Australia Post managers Cartier watches worth $20,000 as performance bonuses masks an agenda to enforce a privatisation of the postal institution which would effectively prevent Holgate from developing Australia Post as a postal bank offering an alternative banking service to the Big Four banking corporations (Westpac Banking Corporation, Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Bank of Australia) that would actually benefit all Australians and the Australian economy in the long term. Narrator Glen Isherwood explains how supporting Holgate is an important step in supporting the creation and development of a postal bank that works for the public’s interests, and in forcing the Australian banking and financial industry to clean up the corruption among its largest companies which enjoy oligarchic cartel-like control over the industry.

Isherwood leads off with examples of corruption such as liar loans, faked payslips, forged documents and cash bribes in the Australian banking and financial industry. Liar loans amount to nearly $500 billion and customers have been charged up to $1 billion worth of services they never received. Despite a recent Royal Commission in 2018 uncovering instances of bank corruption and predatory behaviour on bank customers, the Coalition government under Prime Minister Scott Morrison claimed the Commission did not uncover any criminal behaviour that his government did not know about. Isherwood then returns to the topic of Australia Post and Holgate, and reels off how Australia Post saved bank customers across the country when the major Australian banks closed down branches and left many towns and communities without a banking service. For this, Holgate compelled the major Australian banks to pay commissions amounting to $70 million to Australia Post. Isherwood then demonstrates how the Australian government contrived to create a case around Holgate and the Cartier watches to push for her sacking by paying $2 million for a report whose authors Maddocks even admitted Holgate had not engaged in illegal activity but nevertheless found there were no rules governing Holgate’s decision to award the watches to the senior manager (which could be interpreted to mean that she had broken no rules at all).

An interesting comparison between Holgate’s performance as Australia Post CEO and her predecessor Ahmed Fahour’s performance then follows, showing up how effective Holgate has been in turning around Australia Post’s business and forcing the major Australian banks to cough up what they owe to Australia Post. Isherwood’s report is supported by interviewee Angela Cramp, the executive director of Community Licensed Post Offices Group, an organisation representing the interests of the people who are owner-managers of licensed post offices.

At the time of this review, a swelling group of prominent politicians (including Barnaby Joyce and Bob Katter), journalists, analysts and others has come forward to support Holgate. The Australian Labor Party is attempting to distance itself from its early castigation of Holgate and portraying itself as a staunch supporter of Holgate by piling criticism on the Morrison government. Two more interviewees, solicitor Robert Butler and former ANZ Bank director John Dahlsen, discuss Holgate’s performance as CEO: Butler describes the craven behaviour of Board of Directors of Australia Post in supporting privatisation of the Australia Post and desertion of Holgate once her views about Australia Post becoming a postal bank became known; and Dahlsen praises Holgate’s achievements in a difficult working environment.

Using interviews and newspaper articles, the Australian Citizens Party exposes the agenda of the Morrison government and the elites it answers to as a predatory one antagonistic to the interests, needs and desires of the Australian public. Privatising Australia Post would deliver huge profits to a small number of companies and individuals while Australia Post employees lose their jobs and post offices in rural or remote areas are forced to close, leaving communities without banking services. The Australian Citizens Party cites sources such as Daisuke Kotegawa, a former senior Ministry of Finance public servant in Japan, who explains the difference between financial benefit (usually immediate and short-term) and economic benefit (usually associated with major infrastructure projects, and long-term and often hard to quantify), to support its call for a postal bank service. Viewers sceptical that the Australian Citizens Party is cherry-picking and citing sources to support its push for a postal banking service are urged to do online searches on the advantages and disadvantages of postal banking: the article by Mehrsa Baradaran at this link is a good introduction to the topic .

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