Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Conroy, the Minister representing the Treasurer. Can the minister outline to the Senate the importance of the Australian Business Investment Partnership for promoting economic stability in the Australian economy?

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

I thank Senator McEwen for her ongoing interest in this issue. Australia does not face the same problem of toxic assets which is affecting the banking systems of the US and Europe. However, we are indirectly affected by that problem. In light of the global recession, there is a risk that foreign lenders in the Australian economy will withdraw funding to certain projects, not because of the viability of those projects in Australia but because of problems in their home markets.

That is why, to promote economic stability and protect Australian jobs, the government is introducing legislation to establish the Australian Business Investment Partnership. ABIP will provide liquidity to support viable major commercial projects in Australia, projects which will otherwise be forced to retrench thousands of employees if this financing were not available. ABIP will involve an investment on behalf of the taxpayer of $2 billion matched by an equivalent amount from the four major banks. A number of measures will be put in place to ensure an appropriate return to and safeguards for the Australian taxpayer. This includes that ABIP will only provide financing where the underlying assets and income streams from those assets are financially viable and ABIP will have prudent and conservative lending criteria. All loans must be unanimously agreed by the board, including the government chair. ABIP is being temporarily put in place given current global conditions— (Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister please outline how the partnership will support economic activity and jobs in Australia, and what are the risks to the economy if the partnership is not introduced?

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

The Rudd government is not willing to wait for foreign lenders to withdraw their money and have commercial property values plummet, resulting in Australian job losses. The commercial property sector employs around 150,000 people including plumbers, electricians and carpenters. According to Treasury figures, without action, up to 50,000 people in this sector lose their jobs with flow-on effects to jobs in other parts of the economy. The opposition needs to explain to workers at projects like Vision tower in central Brisbane, which has had to delay full construction and lay off or redeploy 600 workers, why they, including their opportunistic leader, would rather see the commercial property sector fail than ensure the protection of Australian families and jobs. (Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Could the minister also inform the Senate of the reaction by industry and other third parties to the government’s plan to introduce the Australian Business Investment Partnership?

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Hand-in-hand with the big end of town—big business and big unions.

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

Yes, plumbers, electricians and carpenters are the big end of town, Senator Macdonald! There has been widespread support for the government’s initiative including from the Master Builders Association, the Urban Taskforce, Westfield and Access Economics. The exception, of course, once again, is those opposite, who remain focused and determined to play short-term politics at the expense of Australian working families and all of those who depend on them. This is, quite frankly, a disgraceful piece of conduct. There are going to be Australian families who have people who become unemployed because of the voting, in this chamber and the other place, of those opposite. It is wilful economic vandalism and they deserve to be condemned across Australia. There are Australian families and Australian children whose parents will come home unemployed because of those opposite and their opportunistic— (Time expired)