Jim Turnour (Leichhardt, Australian Labor Party) Share this | Hansard source

It is very clear the opposition does not understand that this bill is very much a part of our response to the global financial crisis. I am sure the gallery understands that this is a global crisis and it is very important in debating these bills to place them within the context not only nationally but internationally and that is what my comments are about.

It is clear that the opposition, rather than focusing on the real challenges ahead and on how we can work together as we are doing internationally to tackle this crisis, is seeking at every step to play politics. That is what the Leader of the Opposition was doing when he accused the Prime Minister of hyping up the global financial crisis. We have Barack Obama, Gordon Brown and leaders all around the world looking to work together on the need for decisive and urgent action to tackle this crisis, and we have the Leader of the Opposition claiming that it is being hyped up. The opposition, rather than focusing on Australia’s national interests, is instead focusing on its short-term political interest.

Australians understand that we are not immune to the impacts of the global financial crisis but we are well placed to weather the storm. Unlike the United States and Europe, our economy is forecast to continue to grow into the future. The recently released Mid-Year Economic and Fiscal Outlook has our economy growing at two per cent. I was pleased to see that the Organisation for Economic Cooperation and Development, the OECD, in its Economic Outlook released last night is reported to expect Australia to be one of only a few developed nations to avoid a recession. It forecasts growth at 1.7 per cent for the next financial year and increasing growth into 2010. The Rudd government has taken and will continue to take early and decisive action to steer the Australian economy through these vicious economic times.

This legislation is further evidence of the Rudd government’s commitment to act to protect the Australian economy. The bill contains three key measures. It clarifies the ability of ASIC to regulate short selling and puts beyond doubt the validity of ASIC’s recent class orders in relation to short selling. Secondly, the bill bans naked short selling, but ASIC has power under the bill to grant exemptions from this ban to make the markets continue to work appropriately. Thirdly, the bill establishes the disclosure regime to covered short sale transactions—short sales supported by securities lending arrangements. These amendments are urgently needed to give certainty to the markets, enhance confidence and provide time for Treasury to commence further detailed consultations with industry on how these regulations will be enacted.

Other nations all around the world have taken action on short selling and put in place temporary bans, as ASIC was required to do, in response to the global financial crisis. There is a long list of countries—to mention just a few: Japan, the United Kingdom, France and Germany—that have taken action to control short selling in response to the global financial crisis. ASIC did so with the support of the Australian government, and we are now bringing in amendments to the law to allow us to continue to do what is appropriate and to act responsibly economically. It is disappointing, then, that the opposition sought to delay the introduction of the bill. The Leader of the Opposition seems determined to play politics at every possible moment through these difficult economic times. The opposition leader continues to seek to undermine the efforts of the Rudd government to steer the nation through these difficult times.

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