Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

and I note some of the interjections from those opposite—is that, when they say this is a problem for the states, the problem is that we have such uneven regulation across the states. This is why we have found it necessary to move in the direction of this important green paper which will have its conclusion through the Council of Australian Governments as a necessary national reform. Right now, current regulation is duplicated, patchy and confusing. In fact, it is a complete dog’s breakfast. It is time we had some decent, long-term economic reform to ensure that this sector is also provided a proper pathway to the future.

Of course, one of the contentious matters which will arise in the debate on this financial services reform green paper is how we cover the extent of the financial services market. Do we simply include the mortgage credit or do we include the entire extent of consumer credit as well? This is a legitimate matter for debate with the financial services sector, and that is why this green paper will now become the subject of discussion and negotiation with the financial services sector over the months ahead. We will then move to deliberation of a decision with the Council of Australian Governments. This is a necessary step forward if we are to move towards our national objective of a seamless national economy and a seamless national market. It is very necessary if Australia is to maintain its long-term global competitiveness.

If you go to what people in the sector are saying you can see that it is pretty important to see where the business community is coming from. Luke Lawler, a senior advisor from Abacus, the Association of Building Societies and Credit Unions, has said, ‘The exclusion from the Corporations Act of credit is a kind of arbitrary division. It is not really logical why credit is not there.’ The Consumer Credit Legal Centre has said something similar. Gordon Renouf, head of policy at CHOICE, also said something similar. In fact, we had this statement from another individual in the middle of last year:

... we would say to the States that if they want to refer powers to us, then we would be willing to step in and take their powers and to legislate in this area.

That was Peter Costello on 19 August 2007.

The challenge here is to make practical steps forward to achieve a uniform national market. When it comes to consumer credit and mortgage credit, I think both Australian consumers and the business community across the nation have a realistic expecta-tion of government that we can achieve enduring, lasting national reform in this area. After 12 years, those opposite achieved no outcome on this.

We are advocating a program of reform here through cooperative endeavour with the states and territories. Once the green paper reaches its conclusion through the Council of Australian Governments, the government will be bringing forward significant reforms in this area because we are committed to long-term economic reform, long-term microeconomic reform and long-term regulatory reform in order to create a seamless national market in this nation.

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