Annette Hurley (SA, Australian Labor Party) Share this | Hansard source

The Australian Business Investment Partnership Bill 2009 and Australian Business Investment Partnership (Consequential Amendment) Bill 2009 provide for the establishment of the Australian Business Investment Partnership, ABIP, an incorporated company under the Corporations Act. ABIP will be financed at $4 billion, with the government financing of $2 billion to be matched by a half-billion-dollar contribution from each of Australia’s four major banks. This could be extended via the issuance of government guaranteed debt of up to $26 billion to create a $30 billion financing fund if required, but only if required. The board of ABIP will comprise five directors, one appointed by each of the shareholders, with the government-nominated director being the chairperson. The issuing of any debt by ABIP will be subject to the unanimous agreement of ABIP shareholders. The government guaranteed debt would only be issued if the initial $4 billion is exhausted and would attract an appropriate fee having regard to risk and liquidity factors and general market conditions. Refinance by ABIP will only be available to financially viable commercial property assets and will not be used to refinance loans from the four major banks. ABIP will only be able to make loans for two years from its establishment, with the maximum term of loans being three years. Therefore, ABIP will only temporarily operate, for a period of five years, and I believe that this has been underemphasised in the debate to date. This is only a temporary measure of five years to see us through this period of a global economic downturn. It is by no means a permanent measure.

Debate interrupted.