Australian banks sending jobs offshore despite healthy profits

Australia is the envy of many of the countries formerly known as the developed economies, with two decades of uninterrupted growth, low inflation and full employment.

But it’s not without problems which are bedeviling the Gillard Government.

Australia’s biggest banks are still announcing growing profits, even as the finance sector sheds jobs at a record rate, sending them offshore, notably to India and the Philippines.

With interest rates on the rise, it’s a decision which has angered consumers and bank workers alike.

Political Editor Catherine McGrath reports from Canberra.