Steven Ciobo (Moncrieff, Liberal Party, Shadow Minister for Small Business, Independent Contractors, Tourism and the Arts) Share this | Link to this | Hansard source

My question is to the Treasurer. Recently the Challenger Howard Mortgage Fund announced that, following the government’s decision to implement the unlimited bank deposit guarantee, Challenger has capped redemptions from their fund. I draw the Treasurer’s attention to similar redemption caps as well as the freezing of redemption requests, and in some cases disbursements, from other affected funds. Treasurer, with many partial pensioners and self-funded retirees no longer receiving income or access to their cash, why is the government compounding their hardship by refusing to help them with income support from Centrelink?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for his question because it comes back to a point we were discussing earlier. The government’s guarantee applies to deposits in deposit-taking institutions which are supervised by APRA. What the member is talking about is unlisted managed investment schemes. They are market linked investments. They are not deposits. They are worthy investments, they are worthwhile investments, but they are not deposits. The government has chosen not to put a guarantee on those funds; it is very clear. This in no way reflects on the quality of those institutions. It does not reflect on their investments. But you cannot come in here and argue about more guarantees elsewhere in the system and then say you are going to go out and provide a comprehensive guarantee for every market linked investment in the country. That would be the height of economic irresponsibility.

Steven Ciobo (Moncrieff, Liberal Party, Shadow Minister for Small Business, Independent Contractors, Tourism and the Arts) Share this | Link to this | Hansard source

Mr Ciobo interjecting

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Mr Swan interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer and the member for Moncrieff!

Steven Ciobo (Moncrieff, Liberal Party, Shadow Minister for Small Business, Independent Contractors, Tourism and the Arts) Share this | Link to this | Hansard source

Mr Ciobo interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Moncrieff is warned!

Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Link to this | Hansard source

Ms Macklin interjecting

Steven Ciobo (Moncrieff, Liberal Party, Shadow Minister for Small Business, Independent Contractors, Tourism and the Arts) Share this | Link to this | Hansard source

Mr Ciobo interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! Both the minister and the member for Moncrieff!

Government Member:

He’s been warned.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

I appreciate he may have been warned but there was an interchange across the table. It could have been done as a job lot but I decided not to!