Greens abandon carbon price push but want People’s Bank and welfare for all

Greens leader Richard Di Natale has abandoned his party’s push for a price on carbon but has advocated for welfare for all.

Greens Leader Dr Richard Di Natale. Picture: Kym Smith

Greens leader Richard Di Natale has abandoned his party’s push for a price on carbon but advocated the establishment of a “People’s Bank” to provide low-interest government loans.

In a speech to the National Press Club outlining the Greens agenda for “big government’’, Senator Di Natale called for a radical replacement of the welfare system with a universal basic income scheme where all Australian citizens would receive a regular, non-means-tested wage from the government, with no obligation to work.

He proposed the Reserve Bank should offer banking services online, via Australia Post and other contractors. It would offer a no-frills “mortgage tracker” account to homeowners, with those paying off their home able to borrow up to 60 per cent of the value of the property directly from the RBA.

Interest rates would start at 3 per cent, plus 0.5 per cent to cover costs. Loans would be capped at $500,000 for owner-occupiers, repayable over a maximum of 30 years.

“In the face of ongoing misconduct and price gouging, it’s time for government to step in and ensure that there is a low-cost banking service, backed directly by the RBA, which is focused on the everyday savings and mortgage needs of customers,” he said.

“It will help turn around the recent decline in home ownership rates. It will also help stem the flow of lazy profits to the banks and inject some real competition into the banking sector.”

But in a dramatic policy shift, the Greens will raise the white flag on efforts to establish a price on carbon, saying the prospect of such an outcome being achieved was now “almost non-existent’’.

Amid internal tensions following his party’s loss to Labor in the Batman by-election in Melbourne’s inner north last month, Senator Di Natale argued for an overhaul of the “outdated” social security system that he said is unable to keep up with the changing nature of work and increasing ­inequality.

“It can’t properly support those experiencing underemployment, insecure work and uncertain hours,’’ the Greens leader said.

“A modern, flexible and responsive safety net would increase their resilience and enable them to make a greater contribution to our community and economy.

“That’s why we need a universal basic income. We need a UBI that ensures everyone has access to an adequate level of income, as well as access to universal social services, health, education and housing.’’

Senator Di Natale said the Greens are the only party proudly arguing for a much stronger role for government. He touted his “People’s Bank” as a means of giving current and future homeowners an advantage over investors and of injecting competition into the banking sector.

‘Regressive and utra-socialist approach’

Liberal backbencher Eric Abetz says Senator Di Natale should look to the poverty and riots in Venezuela before he recommends a “regressive and utra-socialist approach of less work, higher welfare and killing profitable businesses”.

Senator Abetz said Senator Di Natale’s proposal of a “taxpayer-funded wage from government without mutual obligation” followed the Greens’ suggestion last year that the working week should be shortened to 4 days.

“Australians watching this address could be forgiven for thinking they mistakenly tuned into ABC Comedy for the sheer economic lunacy that will be on display,” Senator Abetz said.

“It’s catastrophic impact would see the biggest taxpayers in Australia, the banking sector, become unprofitable and shut down and his plan for universal taxpayer handouts would see our nation bankrupted in a matter of years.

“This regressive and ultra-socialist approach of less work, higher welfare and killing profitable businesses has been tried and failed around the world and you need only look at the levels of poverty and riots in Venezuela.

“Senator Di Natale must explain today who will pay for this regressive agenda when he runs out of other people’s money.

“Further, Bill Shorten must immediately rule-out these proposals being considered by any future Green/Labor Government.”

Shorten rejects People’s Bank

Bill Shorten says Senator Di Natale’s People’s Bank was a thought bubble and would flood more money into the housing market.

“The real answer here isn’t to put more cheap cash into the market, which will actually just boost the cost of housing,” Mr Shorten told reporters in Melbourne.

“What we should do is tackle negative gearing, and I think that’s the better reform.”

Senator Di Natale says the major parties have stolen Green policies on the banking royal commission, negative gearing, franking credits, superannuation, the banking levy and marriage equality.

The Greens are also exploring plans for a government-owned energy retailer that will offer transparent pricing and cheaper power bills in a re-regulated energy market.