Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Hansard source

Senator Roberts, we've just had a small changeover. I'm just trying to ensure that I can give you accurate information. The Commonwealth provides a limited guarantee to ANZ, under this legislation, in connection with banking operations in nine markets across the Pacific and Timor-Leste. Those markets are Cook Islands, Fiji, Kiribati, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga and Vanuatu. The guarantee only covers certain eligible liabilities, and it is only triggered if certain trigger events occur and result in a loss to ANZ. The Commonwealth has only provided the guarantee for certain eligible liabilities in order to minimise the risks and potential costs of any Pacific banking guarantee to the Commonwealth and to mitigate any potential competition or market distortion risks in Pacific financial markets and the Pacific banking sector. To preserve the non-distortionary mechanisms in the guarantee, the government will not be disclosing the specific terms of the guarantee, including the types of exposures that are covered. If it assists Senator Roberts, the government was, of course, provided with extensive commercial advice on the guarantee, including around the risks, and commercial risk assessments found the likelihood of a default to be very low.