Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

I give notice that, on the next day of sitting, I shall move:

That the provisions of paragraphs (5) to (8) of standing order 111 not apply to the Corporations Amendment (Short Selling) Bill 2008 and the Tax Laws Amendment (Luxury Car Tax—Minor Amendments) Bill 2008, allowing them to be considered during this period of sittings.

I also table statements of reasons justifying the need for these bills to be considered during these sittings and seek leave to have the statements incorporated in Hansard.

Leave granted.

The statements read as follows—

Corporations Amendment (Short Selling) Bill 2008

Purpose of the bill

The bill ensures that covered short sales (those short sales which are supported by securities lending agreements) are disclosed and to enhance the powers of the Australian Securities and Investments Commission (ASIC) to deal with short selling regulation and disclosure arrangements.

Reasons for Urgency

To ensure the reporting of covered short sales and enhance ASIC’s powers in relation to short selling, as soon as possible. The under reporting of covered short selling has caused significant concern and uncertainty in the marketplace and may have provided opportunities for market misconduct. Continued uncertainty would be detrimental to confidence in the market and could cause harm to investors. These problems have been amplified by the current volatility being experienced in global financial markets. This resulted in ASIC taking temporary action to limit short selling in Australia. These circumstances have increased the urgency to establish an effective legislative regime for the disclosure of covered short sales and to enhance ASIC’s powers in this area as a means of restoring transparency and market confidence.

The Prime Minister, in his speech to the Confederation of British Industry, noted the recent volatility in stock markets has been exacerbated by the lack of transparency surrounding the increasingly prevalent practice of short selling, and that it is in the interests of all investors to have greater transparency around these issues.

The potential benefits of transparency include disclosure providing a signal to the market that securities may be overvalued, noting that not all short sales are information trades and this information needs to be regarded in that context. Other possible benefits include that there is some awareness that those sales need to be reversed at some future time. Also greater transparency may tend to deter attempts at market abuse. This transparency, and the greater confidence it will engender, is particularly important in the context of the current market volatility.

(Circulated by authority of the Treasurer)

Tax Laws Amendment (Luxury Car Tax—Minor Amendments) Bill 2008

Purpose of the bill

This bill will make minor and technical amendments to the tax law relating to the luxury car tax relating to the operation of the refund provisions and contracts entered into before 13 May 2008.

Reasons for Urgency

The measures in this bill are intended to ensure that the refund and pre-13 May 2008 provisions put in place by the Tax Laws Amendment (Luxury Car Tax) Act 2008 operate as intended. It is important that the measures be passed as soon as practicable to ensure that vehicle retailers, finance companies and consumers are certain as to their eligibility for refunds and the rate of luxury car tax that applies. A delayed introduction may impact vehicle purchasing decisions and create further uncertainty for these groups.

In the main, the measures start on 1 July 2008 which is the date that the provisions being amended commenced.

(Circulated by authority of the Treasurer)