Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator McEwen for her ongoing interest in this issue. Australia does not face the same problem of toxic assets which is affecting the banking systems of the US and Europe. However, we are indirectly affected by that problem. In light of the global recession, there is a risk that foreign lenders in the Australian economy will withdraw funding to certain projects, not because of the viability of those projects in Australia but because of problems in their home markets.

That is why, to promote economic stability and protect Australian jobs, the government is introducing legislation to establish the Australian Business Investment Partnership. ABIP will provide liquidity to support viable major commercial projects in Australia, projects which will otherwise be forced to retrench thousands of employees if this financing were not available. ABIP will involve an investment on behalf of the taxpayer of $2 billion matched by an equivalent amount from the four major banks. A number of measures will be put in place to ensure an appropriate return to and safeguards for the Australian taxpayer. This includes that ABIP will only provide financing where the underlying assets and income streams from those assets are financially viable and ABIP will have prudent and conservative lending criteria. All loans must be unanimously agreed by the board, including the government chair. ABIP is being temporarily put in place given current global conditions— (Time expired)