Julian McGauran (Victoria, National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Conroy. How does the Rudd government’s decision to cut $6 million a year out of the budget of the Australian Securities and Investments Commission assist it to properly do its job at a time of this global crisis?

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

I thank Senator McGauran for that question, which he got to belatedly. Senators in this chamber would be aware, because we have mentioned this occasionally in the last six months, not in the last few days, that this is a very difficult period for global financial markets. I know that it catches those opposite by surprise, because each day there is a movement they get caught on the different side of the argument. We have seen the fourth largest investment bank in the US go bankrupt and the third largest bought out by the Bank of America. We have seen the world’s largest insurer requiring an $85 million lifeline from the US Federal Reserve. We saw share markets last week fall significantly, although we have seen some recovery. So each day as things go up and down the opposition keeps getting caught on the wrong side of the argument. They do not have any economic policy that is responsible. They are engaging in cheap shots on a daily basis and it does not matter if they become contradictory.

Earlier I heard an interjection about how well qualified the member for Wentworth is to make commentary on these issues. The member for Wentworth helped bring us the HIH and FAI. He brought the insurance industry in this country to its knees with his own personal performance, and he is engaged in litigation with the HIH inquiry—

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order in relation to relevance. The question was very specific: how does cutting $6 million a year out of the budget for ASIC assist it to properly do its job at this time of global financial crisis? Well may Senator Conroy talk about the member for Wentworth and other people, but it is absolutely and utterly irrelevant to the question that was asked. I remind you of the powers that you do have under standing order 196 to sit down a senator for repeated irrelevance.

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

On the point of order, Mr President: what we now have the opposition doing is providing their question again, attaching the word ‘relevance’ to it in the hope that it gets heard for a second time, then adding commentary to it. It is impermissible to do that. They should state whether it is relevant or not and their argument for that without raising the question again. I humbly submit that there is no point of order that has been raised by Senator Abetz because he has, again, just simply reiterated the question and attached the word ‘specific’ to it. Senator Conroy can provide a broad answer in respect of this question and he is relevant to the question and on point, I would humbly submit.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order and, as I have said before, in keeping with precedence in this place I cannot instruct a minister how to answer the question. I draw the minister’s attention to the question and I draw the minister’s attention to the fact that there are still two minutes and six seconds to remain relevant to the question.

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

Thank you, Mr President. I did note that the question specifically referred to the global financial turmoil and Australia’s responses to it, so I think that I am perfectly entitled to discuss all of the question, not just the one bit that those opposite choose to try to put an emphasis on. I thank you for your ruling because what I was discussing before this spurious point of order was the role of the merchant banking industry. There is now a new Leader of the Opposition who proudly claims his economic credentials as a merchant banker. It is the very merchant banking industry which has brought the world’s global financial sector to its knees. Even today, the last two remnants, Goldman Sachs—

Helen Coonan (NSW, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Mr President, on a point of order: the point about the question and the point about relevance is that Senator Conroy was asked to address himself to the resourcing capacity of ASIC. He has not, so far, brought himself to that, and he was also, I think—and I may have needed to raise this a little earlier—getting very close in his earlier comments to a personal reflection on the integrity of the member for Wentworth. He may not have intended that, but it is certainly appropriate—

Government Senators:

Government senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order on my right! Senator Coonan is entitled to be heard in silence.

Helen Coonan (NSW, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

My point was that in his earlier remarks Senator Conroy, if I heard him correctly, did say that the member for Wentworth had brought the insurance industry to its knees and was involved in litigation to that end. That is getting very close to reflecting on the member, and that is certainly not permissible within the rules. But my particular point of order is: would you, Mr President, ask Senator Conroy to be relevant to the question about the adequate resources of ASIC to deal with the global financial crisis?

John Hogg (President) Share this | Link to this | Hansard source

Senator Coonan, I understand your point of order. I know that predecessors of mine have ruled that they cannot instruct the minister on how to answer the question. I stick with that ruling. However, I draw the minister’s attention to the question. You have one minute 19 seconds remaining to answer the question and to remain relevant to the question that was asked.

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

As I was saying, the merchant banking industry has brought the world financial system to its knees, and they have all abandoned ship. They are not proudly claiming that they were super economic managers because they are merchant bankers. Morgan Stanley and Goldman Sachs have abandoned the merchant banking industry today. They have disowned merchant banking. So, as those opposite are proudly making claims about the qualifications to run the economy of the member for Wentworth, his own industry has abandoned ship, and those opposite are interested in nothing more than cheap point-scoring. They criticised the Prime Minister—

Opposition Senators:

Opposition senators interjecting—

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Do you support the Roosters as well?

John Hogg (President) Share this | Link to this | Hansard source

Senator Carr! Wait a minute, Senator Heffernan; you will get the call. I will give people the call when there is quiet.

Bill Heffernan (NSW, Liberal Party) Share this | Link to this | Hansard source

Mr President, on a point of order: last night we had 80 points of rain at Junee. Would the minister like to comment on that? It would be as relevant as the garbage he is going on with now.

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

Mr President, on the point of order: we now have an opposition who have degenerated into taking frivolous points of order. If they want to take relevant points of order, they can take those, but what we now have demonstrated for us is that the Liberals are choosing to use language that is bordering on unparliamentary in this place. I would ask you, Mr President, to reflect upon the point of order that has just been taken. It should be maintained, at least, what the relevance is of the issue being raised, but unfortunately we now have the Liberals degenerating into a farcical position. I would ask you to rule accordingly.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order. I call the minister to respond.

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

Thank you. As I was saying, those opposite are resorting to nothing more than cheap shots. They are criticising the Prime Minister for going to New York to consult over the world financial crisis. They may as well criticise Senator Wong for going to Argentina recently to negotiate—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, resume your seat. Just resume your seat; it is easier.

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

They may as well criticise my colleague Senator Wong for her recent trip to Argentina on important environmental issues, or my colleague Minister Crean for travelling to Chile to sign the Australia-Chile Free Trade Agreement, or my own recent visit to the US and the UK. They do not have any policies; they are simply— (Time expired)

Julian McGauran (Victoria, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. How does the government’s decision to cut not only the $6 million from ASIC but also the $2 million a year from the budget of the Australian Prudential Regulation Authority allow those bodies to properly do their job at this time of global crisis? Isn’t it a fact that the Labor government has left Australia’s financial regulators dangerously underresourced at this critical time?

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

I am glad, because I know that, actually, Senator McGauran would at least know which league the Roosters played in, and he would not try and claim—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, you should be relevant to the question.

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

If the member for Wentworth wanted to know which league the Roosters played in, perhaps he could have given me a ring, because I could certainly have told him.

Helen Coonan (NSW, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Senator Coonan interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, resume your seat. Senator Coonan, I had made a comment to Senator Conroy prior to that. Senator Conroy, you were asked to be relevant to the question.

Helen Coonan (NSW, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Mr President, that was my point of order. This is a very serious issue as to how well resourced ASIC and APRA are to deal with the global financial crisis. So far Senator Conroy’s answer has been almost incomprehensible and utterly irrelevant to the question.

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

Australia’s regulators have performed solidly in the recent difficult times. ASIC is appropriately funded to undertake its role as the corporate regulator and has received substantial funding increases over recent years. Funding for ASIC has increased by approximately 85 per cent above CPI, from $130.1 million in 2000-01 to a budgeted $303.3 million in 2008-09, so ASIC is doing— (Time expired)