Westpac ‘wimps’ lashed for Adani coal mine loan ban

Resources Minister Matt Canavan called for a boycott of the bank for buckling to the demands of “noisy activists”.

Minister for Resources Matt Canavan. Picture: Darren England

Westpac has sparked the ire of the federal government by ruling out funding for the multi-billion-­dollar Adani coal project in Queensland, prompting Resources Minister Matt Canavan to call for retaliation against the bank for buckling to the demands of “noisy activists in Sydney”.

Announcing new lending policies as part of an updated climate action plan, Australia’s second-largest bank said any financing for new thermal coal projects would be strictly limited to “existing coal-producing basins” and those with a high efficiency hurdle above that of the proposed Adani project.

The move was seen as a win for environmental activists who have campaigned for the bank to step away from the $22 billion Carmichael Coal Project that will be Australia’s largest coalmine.

Senator Canavan, who yesterday had a “robust” discussion with Westpac chief executive Brian Hartzer, accused the bank of being “wimps” for bowing to the ­demands of activists while ignoring jobseekers in north Queensland. “It didn’t seem clear to me that they (Westpac) have spoken to basically anybody in north Queensland about this decision, despite the fact that this is the most important project for north Queensland, despite the fact that unemployment remains just below 11 per cent in Townsville, and that we need job-creating ­opportunities in this state,” he said.

Senator Canavan urged a boycott on the bank, saying Queenslanders should consider their options when looking for their next home loan or term deposit.

“It seems to me that some corporations unfortunately today are wimps in regard to standing up to these activists,” he said, accusing the bank of capitulating after protesters targeted their 200th anniversary celebrations this month.

Though Adani had never approached Westpac for finance, the bank’s previous decision not to rule out funding the project made it a target for protesters.

In 2015, NAB said it would not finance the project, while the Commonwealth Bank has ended an advisory role it held with Adani. ANZ last year told shareholders the bank was decreasing lending to thermal coal.

Mr Hartzer said the decision to limit lending to new thermal coal projects was part of the company’s commitment to “supporting climate change solutions that will drive the transition to a more sustainable economic model”.

Senator Canavan, who is also Minister for Northern Australia, said it was incongruous that Westpac would deem a mine in the Hunter Valley in NSW good, while a mine in north Queensland’s Galilee Basin would be bad.

“I can only conclude from this decision by Westpac that they are seeking to revert back to their original name as the Bank of NSW because they are turning their back on Queensland,” he said.

The rebuke from the Resources Minister was backed by the Queensland Resources Council, which called the bank’s position “ridiculous” given the central role coal played in the economy.

“It is extraordinary that a bank like Westpac would now be judge, jury and executioner on whether something is environmentally sustainable,” the council’s chief executive, Ian Macfarlane, said.

Additional reporting: Rachel Baxendale