Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

As I was saying, in addition to the guarantees of bank deposits and wholesale funding, the government is working to address the liquidity concerns that have seen a number of investment funds freeze redemptions over recent months. Treasury has established task forces dealing with each category of market-linked investment institution in what is a complex sector involving highly diverse and risk differentiated investment products.

The government has asked David Murray to help facilitate larger and more liquid institutions, providing liquidity to various market linked investment vehicles. ASIC has put in place provisions to allow people to access funds in market linked investment funds in cases of hardship. APRA is preparing to fast-track applications by mortgage funds and other financial institutions seeking to attain the status of a prudentially regulated APRA institution, and the government has provided additional funds to facilitate this. In total the government has provided an additional $84 million over four years to ensure that our regulators continue to have the resources they need to maintain the strength of Australia’s financial system during the global financial crisis. The RBA has widened further the range of securities eligible for its repurchase operations—’repos’—to include high-quality commercial paper added to liquidity in this market.

So let us be clear: this government has set out to put in place measures to address the greatest financial crisis since the Great Depression and is working through with the regulators the impact on other institutions. This government has taken responsible and decisive action, unlike those opposite, who try and walk both sides of the street and pretend they are on board— (Time expired)