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

My question is to the minister representing the Treasurer, Senator Cormann. I refer to reports of leaked text of the Financial Services Annex to the Trade in Services Agreement, which the government is negotiating with 50 countries, covering around two-thirds of world trade and services. The text provides that parties to the agreement will allow financial service companies from other countries to establish or expand their operations including 'by taking over existing domestic financial services companies.' Is the government considering changing the four pillars policy on banking takeovers, which supports competition in the Australian banking industry?

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

I will take that question on notice.

Honourable Senators:

Honourable senators interjecting—

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

Order!

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

Mr President, I ask a supplementary question. For the benefit of the minister, this was on the front page of The Sydney Morning Herald on Friday.

Senator Abetz interjecting—

I understand from the Leader of the Government in the Senate that you do not have a brief because you do not read Fairfax. I again refer to the provisions of the draft agreement dealing with banking and financial services. Given that negotiations resumed this week in Geneva, will the government assure the public that any commitments it makes will carve out the four pillars policy?

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

Just for the record: I am a regular reader of Fairfax. I have already taken the substantive part of the question on notice.

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

Mr President, I ask a further supplementary question. I note the minister's refusal to give an undertaking to protect the four pillars policy. Is the minister aware that eroding competition in the banking industry will put upward pressure on interest rates? Has the government's budget of broken promises not already hit low- and middle-income earners hard enough without the government now moving to restrict competition in the banking sector?

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

I do not accept, in any way, shape or form, the interpretation that Senator Wong has attempted to draw from my taking the questions she has asked on notice. I will, as I have previously indicated, take the question on notice and provide the senator with an answer at the earliest opportunity.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on notice.