Chris Bowen (Prospect, Australian Labor Party, Minister for Financial Services, Superannuation and Corporate Law) Share this | Hansard source

I thank the honourable member for the question, because it is a serious one. It is a very serious issue and I take all issues such as this very seriously. ASIC, as an independent statutory government authority, does not need a minister to refer issues to it for investigation, as the honourable member, a former minister for financial services, would know. I make this point: this government takes these matters very seriously. That is one of the reasons that the government made this announcement on a Sunday. Sometimes honourable members criticise us for making significant announcements on Sundays, and often the reason for that is that when the market is closed is the appropriate time to make market-sensitive announcements. A Sunday or Saturday before 10 am, or after the close of markets, is the appropriate time to do that, and often Sunday is the best day to do it.

I have not looked at the Telstra share price movements over recent days. There have of course been share price movements across the board. I will pass on the honourable member’s concern to ASIC. What they do with it is then completely a matter for them. But I am very concerned about any suggestion of—let us call a spade a spade—insider trading and, as a result, tomorrow in the House of Representatives I will be introducing a bill to significantly increase the penalties for insider trading and boost ASIC’s powers to investigate, including the power to intercept telephone calls and electronic communication to help their investigations. I would hope for opposition support for that because it is very significant.

ASIC have pointed out to me—and this was one of the reasons why I embarked on that legislative change—that it is not uncommon before major announcements for share prices to move. This leads ASIC to have very considerable concerns, and I share those concerns. If there was anything in particular to note about the Telstra share price movements over the days before this announcement, that is something that I am sure ASIC would be investigating, but I will pass on the member’s comments and ensure that ASIC are aware of them so that they can take appropriate action.

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