The Age from Melbourne, Victoria, Australia • Page 1

i AOE THURSDAY 10 APRIL 1997 Norman's mind games Sport's Mr Oops School holiday movies 2d XMJE "7 90c Foreigners get chance for banks mvestaiemit 3Paitne gnm for to qnutt THE DEALS I GtYEBACr ne OBvn PKEnpencH, pi i l-ntY aaae vf to? il 11 By TIM COLEBATCH, economics editor, Canberra Foreigners will be able to take over Australian banks and the big four banks can merge with insurance companies as part of a shake-up of the financial system announced by the Treasurer, Mr Peter Costello, yesterday. Releasing the Wallis report, Mr Costello ruled out the large-scale transfer of Australian ownership of the financial system to foreign hands. But he said foreign companies could now knock on his door with proposals to buy into any Australian bank. But the Government will keep the ban on mergers between the big four the National Australia Bank, Weslpac, the Commonwealth and the ANZ for at least a year until there is more competition in banking. This means the NAB, Australia's biggest bank, will keep waiting for the chance to take over one of its main rivals.

Mr Costello said he would keep the right to veto bank takeovers and mergers in the public interest. But he indicated he would let the Government's competition watchdog, the Australian Competition and Consumer Commission, decide if Westpac should be able to take over the Bank of Melbourne. "This is all about increased competition, more choice, lower prices," he said. "Let's get more insurance companies offering bank services. Let's get greater access to the payments system for non-bank financial institutions.

Let's provide a mechanism where deposit-taking institutions can form more easily and grow more easily." The 771 -page report of the inquiry, chaired by the president of the Business Council, Mr Stan Wallis, set out 1 15 recommendations to streamline the financial system for greater competition and efficiency. Mr Costello announced the Government's decision on mergers yesterday; the other recommendations will be considered by Cabinet after the Budget. But Mr Costello indicated his own support for the report's proposal for a major restructure in which the Reserve Bank would lose supervision of the Opposition moves to have the Senate recalled early to discuss the Colston affair were rejected on a cost basis by both the Government and the independent Senator Brian Harra-dine. In other developments: The Government tried to spread the blame for Senator Colston's transgressions by seeking access to advice given to the Labor Government on similar claims in 1983. Labor responded by calling for Fraser Government files involving claims repaid by Senator Colston in 1982.

Senator Colston said through his office yesterday that he would make a decision about his position as Deputy President before the Senate reconvened on 6 May. He said he had "in fact raised the matter with close before the Prime Minister, Mr John Howard, signalled the Government's withdrawal of its support for his position at a news conference late on Tuesday night. Senator Colston said presiding officers should have the respect and support of the chamber, and acknowledged that this had not been the case with him for some time. Support of about half the chamber was "not he said, adding that the President of the Senate should not be embarrassed by such a lack of support for her deputy. Continued: PAGE A4 PAGE A4: More reports.

PAGE A14: Editorial. By LAURA TINGLE, chief political correspondent Independent Senator Mai Colston yesterday indicated he would resign as Senate Deputy President, but was resisting increasing pressure from Opposition parties to force him out of Parliament altogether. Moves were under way yesterday to strip Senator Colston qf much of his parliamentary superannuation payout potentially as high as $1.3 mil- lion as well as having him found in contempt of the Senate and suspended indefinitely from its service, if he did not resign from Parliament. Labor, the Australian Democrats and the Greens all insisted that Senator Colston should resign from Parliament shifting the balance of power away from the Government and the superannuation and contempt moves Were designed to hurry him on his way. But the Government seemed determined yesterday to support the senator's continuing presence and vote in the upper house for as long as Tpossible, with Government ministers saying his actions did not require his resignation at this stage.

Christine Smith: letter stepped up pressure on senator. Williams ousted for three Carlton star Greg Williams, whose challenge to the AFL Tribunal's authority Is awaiting trial In the Supreme Court, last night was suspended for three matches on a separate charge of kneeing. Williams, the 33-year-old dual Brownlow medallist, will miss games against Adelaide, Colllngwood and Geelong after he was found guilty of misconduct In kneeing North Melbourne Dean Laldley during Monday game at the MCG. i He had been suspended far nine matches the previous week for pushing an umpire, but was allowed to play In the North Melbourne game because the Supreme Court granted an pending a trial set for 13 May. PAGE C20: Report.

aar.om0o 0D Ban, for now, on mergers between big four banks i Mergers between banks and life assurers permitted Open door to big bank takeovers by foreigners banks to a new mega-regulator the Australian Prudential Regulation Commission to be responsible for all financial institutions, from banks and credit unions to insurance companies and superannuation funds. A second regulator based on the existing Australian Securities Commission to be renamed the Corporations and Financial Securities Commission would take responsibility for all consumer protection in the finance industry, as well as its primary job of regulating the stock market. The report also recommended greater member choice in superannuation schemes, new laws to encourage the development of low-cost electronic commerce, and a common gateway for consumer complaints about financial services. The report was generally welcomed in financial circles, although there was disquiet about some of its recommendations. The shadow treasurer, Mr Gareth Evans, said the relaxation of the merger rules should set alarm bells ringing for consumers, bank employees and rural and regional Australia.

"Mergers between the big four banks are clearly only a matter of time," he said. Four pages of reports on the Wallis inquiry begin on PAGE CI. 1800 809 915 Press restrictions: David Colston, son of embattled former Australian Labor Party Senator Mai many media representatives camped outside the family home in Brisbane yesterday. Colston, Senior doctor slams hospital conditions Oris Rectangular Classic. A New Shape for the Nineties.

ORIS Made in Switzerland Since 1904 ff Vfi v-L lyjibi! clashes with one of the Picture: GREG WHITE Oil Hltfi Mech LenHton ctIs I.J my By STEVE DOW, medical reporter A Royal Melbourne Hospital doctor who resigned last week has attacked the State Government and the hospital's management, saying budget cuts had been savage and hygiene in the hospital was poor. He also said hospital management throughout Victoria had a laissez-faire attitude to staff safety. Dr David Oberklaid, who had been at Royal Melbourne for eight years running the staff occupational health program until it was privatised, said management had been forced to cut programs Indiscriminately. He said he had quit because cuts to occupational health under privatisation were unjustified, and he was sick of working in a system in which staff were so distressed. He made his criticisms in a farewell speech to colleagues last Thursday and repeated cuts on health care networks set up to run hospitals.

The Health Minister, Mr Rob Knowles, said yesterday Victoria's hospitals were performing as well as hospitals in any other state. He said the Royal Melbourne had denied the claims and he had no evidence to suggest that its standards had declined. But he conceded there had been concerns for "many years" about standards of care, cleanliness and infection measures. The Opposition's health spokesman, Mr John Thwaites, said Dr Oberklaid's comments reflected the depth of the crisis in the public hospital system. Dr Rex Joiner, the chief executive of the Western Health Care Network, which runs Royal Melbourne, said he rejected "comments made by previous staff members" about budget PAGE A15: The doctors speech.

Aboriginal artist lands flag rights A Northern Territory Aboriginal artist, Mr Harold Thomas, has won a 26-year battle to be offldally recognised as the creator of the Aboriginal flag. A Federal Court decision handed down in Sydney yesterday gave Mr Thomas, 50, copyright ownership of the red, black and yellow flag, which has been a symbol of Aboriginal rights. Mr Thomas, who designed the flag In 1971, hailed the courts decision as one of the greatest days of his life. PAGE AS: Report. Dr Oberklaid: hit out over cuts to hospital budgets.

them in media interviews yesterday. He said the hospital was "in parts dirty" because of a lack of cleaning staff. "There's an enormous demand for public services and we can't meet it with continuing budget cuts," Dr Oberklaid said. He said the Government appeared to have washed its hands of the problems, blaming The slim, curved design of the watch case of this new rectangular model from Oris fits comfortably on the wrist. The dial is enhanced with a decorative moon-phase showing the various changing phases of the moon.

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