The second area of concern has been the ability for new credit card providers to enter the Australian market. The ACCC recommended the Reserve Bank step in to take control of credit card schemes and, using its relevant powers for the first time, the Bank has done just that. Prime Minister John Howard welcomes the regulatory intervention. And I would imagine that people will generally welcome this decision. It reminds the Australian public that although we live in essentially a, a free market open economy, that there is still a role for sensible regulation where there's a clear public interest established.
Consumer watchdogs are also delighted.
Chris Connolly is with the Financial Services Consumer Policy Centre. This is the first step in a process which should see credit card fees become lower for merchants, and hopefully that will mean that lower prices will be passed on to consumers. It's a very interesting step. I think, to bring the banks to the table and get a good settlement for consumers. How would you describe the action taken by the Reserve Bank.