Bernie Ripoll (Oxley, Australian Labor Party) Share this | Hansard source

Thank you, Mr Deputy Speaker. The financial impact of the bill that is before us is important to note in this debate. The overall contingent liability for the Australian government is estimated to be around $550 million, comprising around 45 per cent of the remaining GE and GMAC loan books and about 85 per cent of the Ford Credit loan book, and it is important to note this. We do not expect that that will necessarily be the case but it is estimated to be around that amount.

The SPV will only be able to advance funds if it is satisfied that the dealership is a viable business. I think that is a fair proposition in terms of the government providing that security, that guarantee, and making sure we can use the good credit rating that the government has in providing assistance and liquidity to car dealerships across the country. The terms of any alliance must also be consistent with the usual commercial lending criteria of recognised finance providers. At that point I particularly mention the good work that Perpetual and also Credit Suisse will be doing in being the managers of this special purpose vehicle.

In all, this is really good legislation and really good policy. While we are debating the Car Dealership Financing Guarantee Appropriation Bill 2009 today, it is probably also worthy to note that we actually did move on this matter quite quickly. On 23 December 2008 we moved to bring in the package and earlier this year provided the mechanisms for that to happen. This is more evidence of a government that is in touch and responsive to the needs of small and medium enterprises in this country. It is part of a national suite of measures to ensure that the economy continues to grow and that people have an opportunity to do the best they can. My view has always been, as is the view of many people, business ought to get on with doing—(Time expired)

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