Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I will make a contribution because it is apparent the legislation will be defeated. I have already engaged Senator Brown not just on this occasion but on other occasions about the different circumstances in respect of salary caps and bailouts in the US and some other places compared to Australia, so I will not repeat that argument again today. It is disappointing these important bills will not pass and, as a result of that, ABIP will not be up and running to provide a source of liquidity to viable commercial property firms should the need arise. Australia is more exposed to the potential fallout from the global financial and economic crisis as a result of opposition to the bills. Naturally, the government hopes that the possible funding gap that might arise in the commercial property sector that gave rise to the ABIP initiative does not materialise and that liquidity problems do not result in the failure of good Australian firms and the loss of Australian jobs.

The bills have faced extensive scrutiny in the Senate and through the Senate Standing Committee on Economics, and there have been a number of amendments to the legislation which we have accepted, including in the area of executive pay. But those amendments in that area did not meet the concerns of the Greens. The overwhelming evidence has been that ABIP would be a valuable and effective measure with sound governance and financial arrangements to safeguard the interests of taxpayers, while helping support Australian business and jobs in what are quite extraordinary times, given international financial and economic events. Obviously, the government will continue to closely monitor market conditions and will take action if necessary to support the financing of commercially viable firms in the commercial property sector. It has been the approach of this government to be prepared and to intervene where there are issues of market failure in the current circumstances. I do hope that, if this legislation is re-presented, Senator Brown will have cause to reconsider on behalf of the Greens. But we will see if that eventuality occurs.

The only other point I want to make is that the crossbenchers—the Greens, Senator Xenophon and Senator Fielding from Family First—constructively engaged with the government. There was significant discussion I know and I do thank them for that. The Liberal opposition just said ‘no’ out of an ideological approach, as they have said ‘no’ to anything in terms of intervention in these very serious financial and economic times. Just sitting on your hands and doing nothing is the way to see a much worse recession eventuate. That was the approach taken in the Great Depression, as I recall—not directly, of course; I was not alive then but certainly what I know from stories of that period. You cannot let banks fail. Governments do have to intervene proactively in terms of stimulus packages to cushion the economy and to prevent the collapse of consumer demand and property prices. We make no apologies for this type of approach. We believe in being prepared to cushion the economy in these very, very serious economic times.

Question put:

That the motion (Senator Sherry’s) be agreed to.