Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

If these matters have to be taken on notice, I would be satisfied with that. I do not want to unduly—that look on Senator Collins’s face says it all! That is not a criticism.

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

I’m smiling.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

She’s smiling. For those who are listening, Senator Collins is smiling, which is always a good thing. My concern—and I think Senator Johnston summed it up in his second reading contribution—is that, from a jurisprudential point of view, people are losing rights. In this bill, people are losing rights. It is overturning a well-considered High Court decision. If a person has effectively been defrauded by virtue of their investment, their subscription, in a company, they are missing out because this piece of legislation just holus-bolus overturns the High Court’s decision in Sons of Gwalia, and it does so in a way that completely disregards the common-law rights, the contractual rights and the tortious rights of individuals who have been ripped off, who have, by misrepresentation, been defrauded in investing in a company.

Senator John Williams is in the chamber, and I know that he is one who has been particularly diligent and who has campaigned very strongly in relation to issues of corporate governance, the role of ASIC and people being ripped off. It has always been a pleasure to work with Senator Williams in relation to those issues and issues of banking as well—along with Senator Bushby, we have co-sponsored that Senate inquiry.

The question I have is: what was the process, and what representations were made by which the government went from having a High Court decision to saying, ‘No, we are going to overturn that; we’re actually going to take people’s rights away’? That is a real concern. I am mindful of time constraints. If necessary this can be provided on notice, but I just want these concerns to be placed on the record further to Senator Johnston’s contribution.

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

I note the concerns raised by Senator Xenophon, and I think it is important that he indicated that he has raised these concerns. There has been some discussion between his office and the offices of the parliamentary secretary. The letter I tabled earlier refers to those and, as he indicated, I will take on notice the historical elements that he is seeking in relation to the justification for the reversal of that decision.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

As I understand it, with the toing and froing at my office—and, as usual, I think it is important to put this on the record—the government will support a reference to the Senate economics committee within 12 months as to the operation of this. I think that we have not heard the end of this yet. I am concerned that there will be another Sons of Gwalia situation coming up there, where people have been misrepresented to and where they have subscribed to a company under fraudulent circumstances and they will lose their rights, and they will not have the same rights, for instance, as a creditor in a winding-up. From a jurisprudential point of view and from the point of view of basic fairness and equity, this parliament is doing the wrong thing. I have been very comforted by Senator Johnston’s support in relation to this as a leading coalition senator. But I just hope that we can do a U-turn on this sooner rather than later.

Can Senator Collins, on behalf of the government, just confirm that undertaking that within the next 12 months the government will agree to the Senate economics committee revisiting this. I hope that there will not be another Sons of Gwalia situation where people who have invested in a company under circumstances where they have been misrepresented to and ripped off and left without the rights that the High Court has conferred on them.

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

I can give Senator Xenophon the assurance he seeks there. It is indeed in the letter that I tabled earlier, although I appreciate that he may not have had the opportunity to look at the detail, given the timing. I refer him to the second page and the third last paragraph:

Accordingly, the government supports in principle the submission of the bill within 12 months of its enactment to the Senate Economics Legislation Committee for review of its efficacy and whether it has achieved its intended policy objectives. I understand that the appropriate process in this matter is for the Senate to resolve to refer such and the government would support such a referral.’

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I should have made reference to the letter that was tabled earlier, but it was good to have it further emphasised and I am grateful for the government’s assurances in relation to this. I hope that I am wrong about my concerns, but I will back the High Court on this one in terms of the policy behind this bill.

Bill agreed to.

Bill reported without amendment; report adopted.