Richard Colbeck (Tasmania, Liberal Party, Parliamentary Secretary to the Minister for Finance and Administration) Share this | Hansard source

Firstly, I would like to thank honourable senators who have taken part in the debate on the Corporations Amendment (Takeovers) Bill 2007. The bill is an important initiative because it will restore to the Takeovers Panel the clear, flexible and adequate powers that the parliament had originally envisaged for it. In this way, the Takeovers Panel will continue to be able to hear takeover disputes in an efficient and effective manner and serve as the primary forum for resolving takeover disputes. The government believes that the role of the Takeovers Panel is crucial to the wellbeing of Australian financial markets and that it should not be subject to a constant threat of legal challenge. Since the panel was reconstituted in March 2000, it has performed its functions well and should continue to do so. The current bill will ensure that the Takeovers Panel will continue to contribute to the current healthy operation of the takeovers market in Australia.

In preparing this bill, the government has seen that the consensus view is clearly that the role of the Takeovers Panel is critical and that the panel is well respected. Recent court cases have thrown some doubt on the extent of the panel’s powers, however. This bill is designed to remove those doubts, clarify the law and enable the panel to get on with its work, which is highly valued by market participants. Indeed, this was recognised by the Parliamentary Joint Committee on Corporations and Financial Services, which examined the earlier draft bill and whose feedback has been reflected in certain parts of the bill now before us.

Senator Murray, I reconfirm the comments that you quoted from Parliamentary Secretary Pearce’s response to the amendment that will be moved by the opposition, and I am more than happy to expand on that once we get to the amendment in the committee stage. But I will reconfirm that the alternative wording that was put forward by the committee was considered by the government as part of its consideration when drafting the bill and was rejected at that stage.

Ensuring the integrity of the Australian marketplace and the financial markets which comprise it is a goal that this government continues to strive for. In this bill the government is delivering on its commitment to the open and efficient operation of our takeovers market by restoring the position of the Takeovers Panel to that which was originally intended by the parliament. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.