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

It is clear that the auto industry’s problems stem from well before the introduction of the government guarantee and are largely the result of the global financial crisis. Those opposite may want to laugh but, as is well known, two of the major financiers had announced prior to the guarantee that they were pulling out. So those opposite may want to laugh, but that is why the Rudd government is working to address the liquidity concerns that have seen a number of investment funds freeze redemptions over recent months.

Treasury task forces are dealing with each category of market linked investment institutions. David Murray is facilitating larger and more liquid institutions, providing liquidity to various market linked investment vehicles. APRA is fast-tracking applications by mortgage funds and financial institutions seeking to attain the status of a prudentially regulated APRA institution, with $84 million of additional funding. And the RBA has widened repurchase operations to include high-quality commercial paper, to add further liquidity to this market. So let’s be clear: we have been taking action and we continue to be in discussions and negotiations.

It is only a week or two ago that Senator Fifield claimed the talks had collapsed. Yet here you are today, from your own mouths, suggesting they are still going on. The government is certainly aware of the difficulties that the automotive finance companies have been facing due to this crisis. Their primary challenge is that they raise funds from wholesale markets— (Time expired)