Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

As Senator Lundy has quite rightly pointed out, these are unique circumstances and times for this generation, particularly with respect to the operations of the financial markets and the impact on the broader economy. The national account figures released this morning show gross domestic product has grown by 0.1 per cent. As my colleague Senator Conroy has outlined, there are many advanced economies, developed economies, around the world that are now experiencing negative growth and are in recession. Slowing growth in the September quarter shows that Australia does not operate in an economic vacuum; we are impacted by these international economic circumstances and they are impacting right around the globe. But the Australian economy has put in a comparatively stronger performance when compared to many of our international counterparts and the Rudd government has taken early and decisive action to minimise these impacts that we are seeing.

I would like to remind the Senate of a few of these decisive actions. For example, in May the government announced we would provide legislative authority for an increase in Commonwealth government securities issuance up to $25 billion. Secondly, the government has moved quickly to guarantee bank funding. If institutions fail to lend to each other and if businesses, farmers and households cannot borrow then the economy slows and gridlocks. Thirdly, we have acted to protect financial institutions by minimising market manipulation and speculation through supporting a temporary interim ban on what is known as short selling. Fourthly, we have acted decisively to support competition and liquidity in the mortgage market. The government has announced the purchase of some $8 billion of residential mortgage backed securities. Fifthly, the government has acted to introduce for the first time the regulation of all financial services— (Time expired)