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

I thank Senator Hutchins for the question. We are facing the most serious global economic downturn since the Great Depression. The Rudd government understands this is a global problem, so we must do all we can internationally to contribute to a global solution. Last weekend G20 finance ministers met in London in preparation for the G20 leaders meeting early next month. Importantly, G20 finance ministers and central bank governors pledged to take whatever action is necessary until growth is restored and stated that they are committed to deliver the scale of sustained effort necessary to restore growth.

They also endorsed a framework for dealing with the toxic assets that infect so many banks in the US and Europe. Toxic assets on the balance sheets of large international banks are poisoning global credit flows and global growth. This framework has been put forward by Prime Minister Rudd and also the British government and we very much welcome its adoption by the international community. In addition, ministers agreed to substantial reform of the IMF to ensure its effectiveness to respond to this crisis and help avoid crises in the future. I am pleased to say that Australia was co-chair of the G20 working group on IMF reform. The Financial Stability Forum has been expanded to all G20 members with Australia now holding two seats in this forum. Australia will also become a member of the Basel Committee on Banking Supervision, the primary global financial system rule-setting body. (Time expired)