Stephen Parry (Tasmania, Liberal Party) Share this | Link to this | Hansard source

At the request of Senator Bushby, I move:

That the following matters be referred to the Economics References Committee for inquiry and report by 15 September 2009:

(a)

the circumstances and basis of the decision to introduce an unlimited bank deposit guarantee and of subsequent decisions to change or define the guarantee;

(b)

the circumstances and basis of the decision to introduce an unlimited wholesale bank funding guarantee and of subsequent decisions to change or define the guarantee;

(c)

the effect that the initial announcement of, and subsequent changes to, an unlimited bank deposit guarantee had on operations of the Australian financial sector, including for entities not regulated by the Australian Prudential Regulation Authority (APRA);

(d)

the effect that the initial announcement of, and subsequent changes to, an unlimited wholesale bank funding guarantee had on the operations of the Australian financial sector, including for entities not regulated by APRA;

(e)

the estimated effect of the bank deposit and wholesale funding guarantees on interest rates in Australia;

(f)

how Australia’s deposit guarantee and wholesale funding guarantee schemes compare with guarantees offered in other countries and the way in which these schemes were introduced and changed in major overseas countries;

(g)

the interaction between the deposit guarantee scheme and other recent measures implemented by the Government since September 2008, including the wholesale funding guarantee and the purchases of residential mortgage backed securities;

(h)

the nature of the financial and economic distortions that the unlimited deposit guarantee scheme has created vis-a-vis savings products that are not covered by the guarantee scheme;

(i)

the optimal cap, if any, for the deposit guarantee in the light of international experience;

(j)

recommendations for ameliorating the moral hazard associated with the deposit guarantee and wholesale funding guarantees;

(k)

recommendations for timelines and for policies to credibly remove the wholesale funding guarantee and to reduce the deposit guarantee to any recommended optimal cap;

(l)

the effects of the bank deposit guarantee and wholesale funding guarantee on competition within the financial sector;

(m)

the effects of the announcement of the unlimited bank deposit guarantee and unlimited wholesale funding guarantee on consumer and business confidence;

(n)

the broader economic and social consequences of these distortions;

(o)

the size and nature of the contingent liability that the unlimited deposit guarantee has created for Australian taxpayers; and

(p)

other matters relevant to the bank deposit guarantee and wholesale funding guarantee that the committee considers appropriate.

Question agreed to.

Kerry O'Brien (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

by leave—The government will not call a division even though we are opposing that motion, given that, with the Greens supporting the opposition, it has the majority.

Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

I move:

That the following matter be referred to the Economics References Committee for inquiry and report by 17 August 2009:

The operation of employee share schemes in Australia, including:

(a)

the structure and operation of employee share schemes;

(b)

the benefits of employee share schemes;

(c)

the taxation issues relating to compliance of employers and employees participating in employee share schemes;

(d)

the recent announcement of proposed changes to the treatment of employee share schemes, the background to these changes, consultation undertaken to develop these changes and the anticipated impact of these changes on employees, employers and Australian business generally;

(e)

the rules governing employee share schemes in other countries; and

(f)

any other related matters.

Question agreed to.

Kerry O'Brien (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

by leave—Could the Hansard reflect that the government do not support this motion but we recognise that the majority of the chamber does support the motion, and we will not call a division.