Australia’s big banks must pass on yesterday’s RBA official interest rate cut in full and as a matter of urgency, according to the CFMEU, to save manufacturing and construction jobs and provide relief for homeowners.

National Secretary of the Construction Forestry Mining and Energy Union (CFMEU) Michael O’Connor said today that given yesterday’s cut was only 25 basis points, for it to have any positive effect on those parts of the economy which are struggling, it must be passed on quickly and in full.

“This time there can be no gouging by the big banks. Frankly our view is that the full 25 basis points will barely alleviate pressure on trade-exposed industries such as manufacturing, but if it is to have any positive impact it must be passed on in full and in a timely manner.”

Earlier this week the AIG Performance of Manufacturing Index clearly showed the manufacturing sector shrinking.

“There is a clear community expectation that banks will pass on cuts in full. This union has been critical this year of the RBA on interest rates, for ignoring the RBA Act which stipulates the promotion of full employment.”

“Well we will be doubly critical of the big banks if they choose opportunism and profiteering this time over doing the right thing by the Australian economy.”

“Manufacturing employs one million Australians and the facts on the ground are that, with the dollar at the level it is, the big banks would be playing with fire if it fails to provide relief to businesses and homeowners.”

For media comment please call Michael O’Connor on 0418 550 831.