Bill Shorten (Maribyrnong, Australian Labor Party, Parliamentary Secretary for Disabilities and Children's Services) Share this | Hansard source

In fact, the member for Sturt may be interested to know that the Minister for Superannuation and Corporate Law has also said:

The Bill fills a gap in law, present since 2001. It will boost transparency, enhance the integrity of Australia’s markets and complement action already taken to strengthen our financial system …

There is criticism about this bill at the edges. Certainly, people who have lost money or people who are experiencing financial hardship at the moment are finding the whole operation of the market difficult to contemplate. Of course, though, we need to recognise in this legislation that short selling is not automatically bad. For instance, if BHP shares were at $20 and I were to propose shorting stock at $10, someone else at the other end of the transaction who did not think that the stock was worth more than $10 would see this as a fantastic transaction. That is the market at work. Short selling does allow liquidity in the system, but our legislation, I think, captures what is important: the market operates best when there is transparency. I think that all a regulator can do is make the transactions in the market obvious and then allow people to choose. This legislation enhances transparency in the operations of the market.

The Rudd government has been quick to act to help Australia minimise the impacts of the global financial crisis. It has been responsible, it has been equitable and it has been fair—showing all the hallmarks of true Labor values—in the best interests of the Australian people. In times of greatest hardship, the Australian people have always put their trust in Labor to deliver, and the Rudd government intends to deliver for all Australians. I commend this bill to the House.

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