Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Acting Assistant Treasurer, Senator Cormann. I refer to the government's proposed changes to the financial advice legislation which removes the ban on sales commissions and other conflicted remunerations. Is the minister aware that Alan Kohler has described this ban as:

… the outlawing of a corrupt practice that has cost consumers billions of dollars and lowered trust in the entire financial advice industry.

Minister, why is the government bringing back a corrupt practice that hurts everyday Australians?

John Hogg (President) Share this | Link to this | Hansard source

I call the Minister representing the Assistant Treasurer.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Bishop for that question. With all due respect to Mr Kohler, he is wrong. That is not what we are doing. We are restoring some balance in the regulatory framework for financial services. The previous, Labor government was guided by one thing and one thing only—and that was how best to promote the vested interests of union dominated industry funds. The one thing that the Labor Party was focused on was how to leverage its position as the government of Australia using legislation to impose one business model across the whole of the financial services market—the union dominated industry fund model.

We are committed to ensuring the financial services sector is as efficient, transparent and competitive as possible—

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! I need silence on my left so I can hear the answer.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

We on this side of the chamber are committed to ensuring we have the most efficient, competitive and transparent financial services system possible, with appropriately high corporate governance standards where people across Australia seeking access to financial advice can better—

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. That last phrase from Senator Cormann almost got there, but the particular question was about a ban on sales commissions and other conflicted remunerations.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order. Senator Cormann is addressing the question.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I know that the Labor Party do not want to listen to any of this, but it is a very important context for the question that was asked. The premise of the question is wrong. We are not reintroducing conflicted remunerations for personal advice. We are ensuring that there is an appropriate level playing field and a competitively neutral financial services regulatory framework when it comes to the provision of general advice. Guess what? The Labor Party gave a special deal to their friends in union dominated industry funds. They said, 'You can provide fund advice. You can charge a fee which is not disclosed or transparent to every member of that fund, irrespective of whether they access advice or not. You can keep going.' But they did not want anybody else to be able to— (Time expired)

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I have a point of clarification. The President referred to Senator Cormann as the Minister representing the Assistant Treasurer. The Prime Minister in the House has referred to Senator Cormann as the Acting Assistant Treasurer. I seek some clarification as to whether Senator Cormann is answering in his representative capacity or, in fact, as Acting Assistant Treasurer.

John Hogg (President) Share this | Link to this | Hansard source

If Senator Cormann is in an acting capacity and I have been wrong there then I correct the record.

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question to Minister Cormann. I refer the minister to correspondence to the other Assistant Treasurer from consumer advocates, including CHOICE and the Council on the Ageing, who have said that for any FoFA law changes:

… the balance needs to be in favour of protecting consumers and their retirement income, rather than protecting the income of financial advisers.

Why is the government putting the income of financial advisers ahead of Australian consumers?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The interest that this government is putting first is the public interest. The interest that this government is putting first is the consumer's interest. You know what? Consumers have an interest in having affordable access to high-quality financial advice. It is very important that we get the balance right for the appropriate levels of consumer protection by making sure that access to high-quality financial advice remains available and remains affordable.

We understand that there is a particular commercial interest that is close to the heart of people on the Labor side, because every single one of those senators is a member of a union. Maybe some of them have been trustees on industry super funds in the past. Maybe some of them are lobbied from time to time by union-dominated industry fund trustees, because they do have a particular interest in a regulatory framework that makes it harder for others to compete. (Time expired)

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

When there is silence we will proceed.

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. This is a beauty—listen to it!

John Hogg (President) Share this | Link to this | Hansard source

Senator Bishop, just ask the question, please—no comments.

Honourable senators interjecting—

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Tell them to listen. Be quiet over there!

John Hogg (President) Share this | Link to this | Hansard source

Senator Bishop! Order!

Honourable senators interjecting—

Order! When there is silence, Senator Bishop, you will get the call.

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Minister Cormann, will the government withdraw its FoFA changes, given that the Assistant Treasurer responsible has now stood aside due to his own conflict of interest in his previous roles of company director and Liberal Party official?

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! When we have silence on both sides we will proceed.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Thank you very much, Mr Premise—sorry, Mr President.

John Hogg (President) Share this | Link to this | Hansard source

Thank you, Senator Cormann!

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I was getting ahead of myself! Firstly, I completely reject the premise of the question, which relates to the suggestion in relation to Senator Sinodinos. Senator Sinodinos is a fine man of the highest integrity, who has been doing an outstanding job as the Assistant Treasurer. We all look forward to his return to the Assistant Treasurer position in due course.

In the meantime, I am very happy to confirm that the government will continue to implement the policy commitments that we took to the last election. We know that is a novel concept for people on the Labor side, who go to an election and promise one thing but do the exact other thing after the election. We know that the Labor Party has taken that to another level today: they promised one thing today and did the exact opposite on the same day. They promised one thing in Western Australia before the election and did the exact opposite in the chamber today. (Time expired)