Sam Dastyari (NSW, Australian Labor Party) Share this | Hansard source

I, and also on behalf of Senator Whish-Wilson, move:

That the Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014, as contained in Select Legislative Instrument 2014 No. 102 and made under the Corporations Act 2001, be disallowed [F2014L00891].

I rise today to speak about the values that are at the heart of the Australian Labor Party and at the heart of this society. They are very simple values but they are values that we will defend in this chamber and outside this chamber. We are the party of hardworking Australians who are saving for their first home, saving to put their kids into a good school, maybe even if possible to a great Australian university, and putting some money aside for their retirement. We are and have always been the party of the Australian worker and we stand proudly in both the Senate and the House to ensure that, as best we can, the deck is not stacked against our people. We, in the Labor Party, will always give our voice to preserve the values of fairness and integrity. Today, I rise to put my voice on the record opposing the government's changes to Future of Financial Advice laws.

How did we get here today? We all know that the Abbott government wanted to make some changes to the FoFA legislation. We, in the Labor Party, have been very clear that we will negotiate with the government and with our friends on the crossbenches, that we will consult with the financial services and advice industry, that we will consult with consumer groups and that we will consult with legal experts in order to improve, where necessary, FoFA legislation. But we will not allow this government to abuse parliamentary process, which is exactly what they have done in this instance. We will not allow this government to introduce changes by stealth, changes that are widely roundly opposed by consumer and advocacy groups like Choice, National Seniors, Council on the Ageing

We will not allow this government to introduce changes at the 11th hour—a move that has been widely criticised by financial journalists and legal academics, and even surprised officers of the Senate.

As we have heard in this chamber over the past 5 ½ sitting days, Senator Cormann's regulations made with the Governor-General's signature on 26 June—that we do not support and that weaken consumer protections—came into effect on 1 July before anyone outside the government had the opportunity to see them, let alone consult or consider them. As I stand before you today, Senator Cormann's changes are allowing unscrupulous advisers and banks pushing their own products, hustlers running their get-rich schemes and seminars, and all of those con artists preying on working Australians to now bypass the best interest duty and to make their income by putting their own financial gain above the interests of consumers.

We will not allow this government to erode basic consumer protections. We reiterate—and this was echoed this morning by Choice, by National Seniors, by COTA and by my friend, Acting Deputy President, Senator Whish-Wilson—that we will not allow the government to make changes to the FoFA legislation: without consulting widely with the financial advice industry, many of whom are concerned about a return to the dark days before FoFA; without consulting with consumer groups, all of whom are concerned about a return to the horrific losses that happened before FoFA was introduced; without consulting with legal experts, many of whom are concerned about eroding basic consumer protections; and without ensuring that the voices of people who have been the victims of the regime that existed before FoFA—people like my friend, Naomi Halpern, who joined us in the parliament today—who have shared their experiences and stories here in this place.

That is why we, in the Australian Labor Party, are in the Senate. That is why we are in this place. I ask the government: who they are here to represent? Who are they lending their voice to? Who are they standing up for in this chamber? Are they people like Naomi Halpern, who are putting away money for their retirement? Are they people like those represented by National Seniors and COTA, or people trying to ensure that their kids can have better opportunities? Or are they simply standing up for the banks and the financial service industry, trying to take money off the very people who rely on us to make laws, legislation and regulations that are in their best interests?

I know who I will stand up for. I know who I will fight for. The people I represent do not wield power and influence within the Liberal Party. They probably will not be donating to Senator Cormann's re-election campaign. We, in the Labor Party, respect those who do, and we will consult with everybody in good faith if we have an opportunity to have a proper debate about reforming FoFA laws. We will work in good faith with all parties to improve FoFA legislation. I say to Senator Cormann that we will even consider the concerns of some of the interests that he has been protecting. But we will not allow this government to ram through changes by stealth, to deliberately restrict this parliament's ability to scrutinise changes. We will not be bullied into accepting the will of the powerful and we will not back down from standing up for Australian consumers. I urge the Senate to disallow these regulations.