Tom welcomed all

Ann said grace

John Cronly announced that Gentleman Jim Holmes denied being married for 56 years - it was really 61. He has been a club member for 56 years!

Ann mentioned the Club and District directories. Club directory handed out and Ann thanked. District one only for Board members or on application. 

 

Sergeant JC

Fined Dick in a gesture of affection and redemption. Crawled to Donna. Fined John Donald for being inexplicably sartorially replete. Welcomed back corporal Jenny from Russia with love and a fine. Dick Dawes sent wrong address in Email. Self fine for leaving badge in car. Martin also for not wearing badge. Robyn returned from exotic Perth where she saw grandchildren and renowned financial columnist son.

Dick been married "over 80 yrs" by self estimation.

Phil for self-inflicted car incident. Slightly bruised lower leg and collapsed ego.

 

X fines

Martin by Margaret for investiture next day at Govt House for the AO. Congratulations Martin.

JD going to Siberia, Vancouver and Shanghai for a jaunt.

Tom fined JP for sitting between Robyn and Donna.

Tom while having more radiation for prostate cancer,  and going through Crows Nest was affronted when a bus pulled out in front of the oversized Grozmoblie. Obviously considered that buses should give way to tanks.

JC told of bloke parked on nature strip and fined ... Objection that other cars committing a similar misdemeanour and not fined overruled "because other people rob banks but doesn't make it legal".

 

Martin intro Guest Speaker Nick Hossack 

Advisor on Govt financial system enquiry

Rostrum member and adjudicator

Friend of Roger Wescombe. Enough said.

 

Nick

Providing advice on the 4 regional banks to the enquiry.

History

In 1937 Royal Commission said we needed a central bank to regulate FS.

Not many enquiries because not many probs. Oz banks are safe. E.g. previously in 1890 half our banks collapsed. Even then there was only a restriction on accessing term deposits for a time - the money was not lost. Depositors Got their money back with interest. In 30s a rural bank failed and depositors only lost one penny in the pound.

In 1965 Vernon enquiry- all OK

In 1975 Campbell asked to liberalise competition and break inflation.recommended the floating of the Aust dollar, deregulating banks. 

In 1997, John Howard announced the Wallace enquiry. Need new regulator to regulate the banks. (APRA)

Another one in 2013 due to O/S collapses. Asked to determine "Is our situation competitive? Is it fundamentally stable"?

Consumption is the most important consideration.

 

Next, how do we get wealth?  Need a productive financial services sector. How can we ensure the productive capacity to deliver all this? Need investment money. Enter the financial sector. How can entrepreneurs get finance? The financial services sector comes into play at this point and identifies who has surplus savings to get the money to the entrepreneur.  

Find risk takers to finance entrepreneurs.

Next. We need A lot of competing markets to do that. Banks, credit, insurance and super companies provide the necessary capital. Stock market and the Bond market provide the conduit for doing this.

The value of money.

Dollar bills - why valuable? Can no longer exchange for gold. Is it as valuable as gold? There is only one consideration re value and that is that notes Can keep you out of jail. 

Finance system enquiry is all about regulation.

We need Efficiency, competition and stability.

 

Findings - David Murray

Not a huge case for change.

But. Some uncomfortable things in system. Major banks coming in for pressure.

Banks not sufficiently competitive. Only needs changing if evidence of a clear market failure or insufficient competition.

Reports - competitive but concentrated. ie dominated by the 4 major banks - now 85% of stock market - up from 45% 

Bank's equity holding is too low, ie, banks are too highly geared.

Another finding - we must deal with this issue. No bank should be too big to fail. Will hold taxpayers to ransom otherwise.

Solutions

Increase capital level. Second is ring fencing departments within banks - prevent a domino effect if one department collapses.

Bailing-In.  Investors/bond holders should pay, not taxpayers.

Super sector uncompetitive - fees too high. Need basic low fee accounts. Remove all borrowing from super funds.

Need more "independent" financial planners, not bank owned "financial advisers" who are really salesmen selling bank products.

Document disclosure too complex and opaque.

Next step. Enquiry absorbs all submissions and reports in Nov. Applause.

 

Roger thanking speaker

In his Wild youth, Roger would find this subject less than interesting and would probably run a mile rather than have to subject himself to such a boring subject. Now as he enters the later stage of life, he finds it endlessly fascinating and would give up his dinner to listen to such a pearler of a presentation. Or words to that effect. Congratulated Nick on the clarity of his overview, on the massive impact that he has had on our nation's financial wellness outcome that was recently rocked to its core.

Roger then presented Nick with a tree with profound metaphorical references to branches and roots - we got it.

 

Board meeting after next week's meeting. 

Attendance 20 plus apology. Fines $79.80

Raffle price won by teetotaller JC who presented it to our guest speaker.

Tomorrow National flag day.