Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer. What challenges face the Australian financial services sector? Does the current situation present any opportunities for the sector, and what is the government doing to harness those opportunities?

Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

All members of the House would be aware of the turbulence that has convulsed world financial markets throughout the course of this year. One of the world’s oldest investment banks has filed for bankruptcy, the US government has tipped billions of dollars into Fannie Mae and Freddie Mac, the world’s largest insurer has been nationalised by the United States government and, across the United States and Europe, markets continue to suffer unprecedented turmoil.

A key challenge for the government and for our independent regulators is to remain vigilant in the face of these overseas events. Our prudential regulation is amongst the best in the world, as was recognised by the IMF overnight. So we are well armed, but we are not bulletproof in this turbulence around the world. But even in adversity there can be opportunity. In these troubling financial times there will be opportunities for Australia. In these turbulent times investors will be looking for a safe place in which to invest their funds, and Australia fits the bill. That is why the government continues to take concrete steps to transform Australia into an international financial services hub. It is a government priority to make Australia a leading financial centre in Asia.

Tomorrow I will be introducing legislation into the House to reform the way the tax act deals with managed funds—an important step in promoting Australia as a financial services centre. Of course, these changes all flow from our reduction in the withholding tax on budget night—a very important reform that has been widely welcomed. I would have thought it would be something that would be welcomed on both sides of the House, but unfortunately that is not the case.

I am asked to report on challenges to the financial sector, and one of the challenges is the shadow Treasurer’s complete lack of understanding of economics. The Treasurer has informed the House of some fundamental errors by the shadow Treasurer, and it is with a heavy heart that I have to report yet another error by the shadow Treasurer. In her now infamous speech on Monday, she said this at the dispatch box:

It is symptomatic of a government that is unsure of where to go or how far to go. This is a government that says it wants to promote Australia as a financial services hub and then reduces withholding tax for foreigners.

I even checked the Hansard this morning and it is still there. Sometimes mistakes can tragically disappear from the Hansard but this one is still there. She came in in full flight, the Wall Street Journal in one hand and a pair of scissors in the other, and off she went to launch an attack on our withholding tax policy. This is an initiative which has been widely welcomed across the financial services sector. Stephen Dunne, the managing director of AMP Capital Investors, said:

Reducing the withholding tax for foreign—

investors—

… will strengthen Australia’s competitiveness as an … investment centre.

Michael Keenan (Stirling, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr Keenan interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Stirling!

Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

The Investment—

Michael Keenan (Stirling, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr Keenan interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Stirling!

Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

and Financial Services Association said:

It sends a very positive signal to the financial services sector and will enhance our industry in the Asia Pacific region.

Michael Keenan (Stirling, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr Keenan interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Stirling!

Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

It said:

It will … encourage more young people to enter the industry.

Michael Keenan (Stirling, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Mr Keenan interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Stirling is warned!

Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Cutting the withholding tax rate is an integral part of our strategy to promote Australia as a financial services hub. The shadow Treasurer completely lacks understanding. Perhaps the shadow Treasurer may attempt to blame the Leader of the Opposition, like she has this morning on the other little mistake in the same speech, the other little mistake which saw her cut and paste from the Wall Street Journal into the Hansard of this parliament. The policy of the shadow Treasurer appears to be: if you tax them they will come. That is the investment policy of those opposite: if you tax them they will come. Yet again we dip our hand into Bishop’s bag of blunders and out comes another gem. It is just as well that the shadow Treasurer is not a baseball player, because she would have found out on day 1 that it is three strikes and you’re out.

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to a speech by the Assistant Treasurer published on the Assistant Treasurer’s website on the issue of the Treasury bond market and dated 4 June 2008. I also refer to a speech by the Treasurer given in this House on 18 June 2008. Given that the Treasurer’s speech contains eight paragraphs lifted directly from the speech of the Assistant Treasurer—

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Deputy Leader of the Opposition will go to her question.

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

I ask—

Honourable Members:

Honourable members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Deputy Leader of the Opposition can conclude her question when the House comes to order.

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I ask: who is the Treasurer and who is the assistant?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I do thank her for that question. Madam, it would be hardly surprising that the Assistant Treasurer and I would say the same things. We are members of the same government. I was not aware that you had moved countries and taken up residence in the United States. Now we have—

Honourable Members:

Honourable members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The House will come to order.

Opposition Members:

Opposition members interjecting—

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Well, I do know that you need a distraction because there has been a lot of action happening today. I would just like to quote from the Australian online today:

… the offending paragraphs of background were provided for her speech from the leader’s office.

Is that true? Who provided it? It says provided ‘from the leader’s office’. It continues:

Ms Bishop was understood to be “ropeable” about the error but willing to take the public flak rather than blame others.

The blame game is everywhere on that side of the House today. She has been caught out. She has got no excuse for it.