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Prime Minister backs broker channel

Annie Kane Comments 0 
— 3 minute read

The Prime Minister Scott Morrison has voiced his support for the broker channel and outlined their important role in the mortgage market.

Following his address at the National Press Club on Monday (11 February), Prime Minister Scott Morrison was asked questions from the floor.

During this question session, Mr Morrison was asked about his stance on mortgage brokers, given the radical changes put forward by Commissioner Hayne in his final report for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

The Prime Minister said he was puzzled by Labor’s response to the royal commission, in which they agreed to the recommendations before they saw it, adding it was “unwise”.

“I commend the royal commission for the outstanding work that they’ve done. But I don’t think they would expect the government to just, sight unseen, say they were going to support all the recommendations. I never understood them saying that and now they find themselves boxed in.”

He continued: “We have the Productivity Commission report on mortgage brokers which basically says: ‘if you start turning that industry on its head you just hand the power back to the banks’.

“Now I don’t see how that achieves our objective and that is why we have been extremely cautious on that point and that is why I’m not surprised that morgtage brokers are very angry with the Labor party. And these are tens of thousands of small and faily businesses that help mums and dads get a good deal on their mortgage so they don’t have to just face the banks themselves.

“It’s a pretty important service. We want to make sure that Asautralians still have access to that service,” he said.

“Now, what Bill Shorten is going to do, who knows? He still hasn’t repsonded to the royal comission report.”