Stuart Robert (Fadden, Liberal Party, Assistant Treasurer) Share this | Hansard source

It was this government that knocked off hundreds and hundreds of the loan sharks that were going after Aboriginal communities, selling insurance products or products that were into funeral insurance to 10-year-old Aboriginal kids. The rorts were outrageous. It was this government and human services ministers on this side who knocked all of those dodgy providers out. We see, as of now, about 14,815 Centrepay businesses. Back then, the number was about a thousand higher. But it was this government that knocked all of those providers out. It was this government, in August 2015, with the then Assistant Treasurer, Josh Frydenberg, that announced a review of the small-amount credit contract laws. Consumer leases were also considered as part of that review, building on what we had done in Centrepay. It was this government that decided to look at the issue of consumer leasing following the inactivity of those opposite. A report was tabled in March '16, with a final report in April '16. Public consultation then followed. On 28 November '16, the government responded to the review, supporting the vast majority of the review's recommendations, including a whole bunch of stuff to make things a lot better and easier for those on low incomes.

Twelve months ago, the government released an exposure draft bill to implement the government's response: removing the ability of SACC providers to charge monthly fees; providing lessors, creditors and assistance providers with the undertaking of door-to-door selling of leases at residential homes; introducing a broad range of anti-avoidance protections to prevent SACC loan and consumer lease providers from circumventing the rules; and strengthening penalties to increase incentives for SACC providers and lessors to comply with the law. During the consultation phase for the draft legislation, the Treasury received over 140,000 submissions, over 100 of which were from individual franchisees of consumer lease providers. The government has been considering the draft legislation in light of feedback during this consultation process. It would have been helpful if those opposite had also considered some of the feedback after the draft legislation came out rather than just taking the draft legislation as a stunt and putting it into the House. The whole point of consultation is to consult and listen and update legislation based on broad community feedback—something those opposite seem to have missed, as they missed six years of dealing with the issue of consumer leasing.

This government doesn't rush to failure like those opposite. This government actually sits down, it consults, it looks at issues widely and then it implements sensible policy. At the same time, the government has noted the comments of Commissioner Hayne regarding the consumer credit industry, in the interim report of the royal commission into misconduct in the banking, super and financial services industry. In particular, Commissioner Hayne has made some interesting observations regarding consumer credit and has asked a range of policy questions, the answers to which may have an impact on the approach government takes in this space.

The government notes that the seventh round of the royal commission's public hearings will focus on key policy questions arising from the first six rounds, upon which the interim report is based. The government will consider the extent to which the issues raised through the next round of hearings of the royal commission will impact on the drafting of the final SACC legislation. On the one hand, those opposite want us to rush to failure and move now. On the other hand, those opposite want us to consider, sensibly and diligently, the outcomes of the royal commission. Well, which one is it? Should we sensibly consider the outcomes of the royal commission as they pertain to the SACC legislation or should we, like those opposite, like a bunch of lemmings towards a cliff, rush towards unintended failure? Well, this government doesn't do that. This government carefully considers the issues of the day, and we will carefully consider what the royal commission has got to say in this space. We will carefully consider the policy options at the next range of hearings and then the government will act.

I also note that Labor's provided notice of its intention to move a motion in the Senate referring the issue of payday lending and consumer leasing for a whole new inquiry by a Labor chaired Senate Economics Reference Committee. Not content to wait and see what the royal commission's going to do, not content to wait and see what the policy outcome hearings are going to be—oh, no; Labor knows better than everyone else and is launching itself into a new inquiry, perhaps embarrassed by six years of inaction when it comes to consumer leasing and doing nothing. Now, at the 11th hour, Labor is rushing into an inquiry to work out what it actually believes. We'll sit and wait for the royal commission's advice. We will look at the policy hearings and then we will move forward and we will act sensibly, because that is what sensible governments do.

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