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

My question is to the Deputy Prime Minister. I refer the Deputy Prime Minister to the government's watering down of important consumer protections in financial advice. Why is the government making it harder for older Australians to have security in the financial advice they are receiving on their retirement savings?

Opposition Members:

Opposition members interjecting—

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Well, I take the question because when you compare last year's budget to this year's budget, I have only been asked 25 per cent of the questions that I asked of Wayne Swan last year, so I have to scratch for every question I can get from the member for McMahon.

Mr Bowen interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

I would remind the member for McMahon that he has asked his question. There is a general warning.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I say to the member for McMahon: we are not about watering down protections for consumers.

Ms Plibersek interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Sydney will desist.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I will tell you why—because the protections that the Labor Party put in place did not particularly work, as is self-evident at the moment. A whole lot of initiatives that Labor put in place, often at the request of the industry funds, actually did not deliver what they were hoping for. Why? Well, I was reflecting carefully on this. The minister that was responsible for the Future of Financial Advice measures was the Hon. Bill Shorten. When he came into the House and introduced the old FoFA legislation, which he said was going to offer protection for consumers, he was in such a muddle that he tabled 10 amendments to his own bill and then moved 16 further amendments.

The outcome was that the laws that Labor set up to protect consumers were so muddled that the original explanatory memorandum to the bill had to be added to with a revised explanatory memorandum. Then they screwed that up and had to introduce a replacement explanatory memorandum. Then they screwed that up and had to introduce a supplementary revised explanatory memorandum. Then they screwed that up—hard to believe, but they did it. It was the Labor Party in government—bear with us. They screwed that up and had to introduce a further supplementary explanatory memorandum. That is the complete unmitigated mess of the previous government in relation to financial advice laws. No wonder financial advisers were confused. No wonder consumers were confused. The great architects of these reforms, the member for McMahon and the Leader of the Opposition, now want to properly run the country again. They did such a great job screwing up the country last time that they want to have a chance to do it again.

Our reforms are sensible. Our reforms put in place rules to ensure that there is consistency and predictability in relation to financial advice. Our reforms were on the table for the Australian people before the last election. Our reforms deliver the sensible nature that we expect of financial laws.