David Bradbury (Lindsay, Australian Labor Party, Assistant Treasurer ) Share this | Hansard source

I would like to take the opportunity to thank those members who have taken part in the debate on the International Monetary Agreements Amendment Bill 2013. This is an important bill to ensure the IMF has sufficient resources to continue to support the global recovery and global economic stability.

The purpose of the bill is to amend the International Monetary Agreements Act 1947 to bring into force a bilateral loan agreement between Australia and the IMF that was signed on 13 October 2012. The bill provides a standing appropriation for payments that are drawings by the IMF under the loan agreement. The appropriation covers the specific loan agreement only and any amendments to the value or term of the agreement would require an act to be subsequently amended.

While the IMF's current resource base is sufficient to meet expected needs, the IMF estimated early last year there is a potential global financing gap if a severe financial crisis were to occur. The IMF may only make drawings under the loan agreement if its existing quota in new arrangements to borrow resources is insufficient to support its lending to borrowing member countries. The maximum amount available to be drawn down under the agreement is the equivalent of 4.61 billion standard drawing rights, around A$6.8 billion.

Australia is a small open economy. It relies on strong and stable global growth for its continued prosperity. Continued financial and economic uncertainty in Europe and elsewhere and a weakened economic outlook globally makes the role of the IMF in supporting global economic and financial stability much more vital. Passage of this bill will ensure the IMF has sufficient resources to continue to support the global recovery and global economic stability, which will benefit every country, including Australia.

I commend the bill to the house.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Ordered that this bill be reported to the House without amendment.

See this speech in context