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

The Rudd government is very well aware of the impacts of the international financial crisis and economic crisis we are seeing on the global economy. In 2008 the Council of Australian Governments ministers agreed to a Commonwealth request to transfer the remaining regulation and supervision of all financial services, products and providers into a single standard national regulatory regime, including, importantly, what is known as consumer credit. Included in this new regime will be important new safeguards for consumers. The Rudd government has recognised that in the context of the US one of the root causes of the financial crisis was irresponsible lending. There are some families who can in fact maintain a reasonable sized mortgage but are often saddled with more debt than they need and more often than not more than they can repay. The new responsible lending provisions in the new national laws will make it illegal for a lender to extend credit to a consumer when it is unsuitable for them and it is reasonably believed the individual—