Page 1094 - Week 05 - Tuesday, 23 June 1992

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It simply is not good enough to say to the Opposition, "Go and do your homework". It is not good enough if you do not have the time, if you do not have the resources and if you do not have the information available to you to do that. The onus, I submit, is on the Government to persuade and convince the other members of this Assembly that what they are doing is right. The Government should not just throw it on the table and say, "Take it or leave it". I think that is too much to expect. It is significant legislation. It is important legislation. It is important to a lot of people who are residents of this community. I believe that they have a right to know what the legislation is about, and they do not know it now.

MS FOLLETT (Chief Minister and Treasurer) (4.30), in reply: Madam Speaker, if there are no further speakers I will close the debate on this matter. I would like to say at the outset that it was in fact Mr Kaine, as Chief Minister, who first signed the heads of agreement on this matter, and that was at the May 1991 Premiers Conference. That conference committed State and Territory governments to the preparation of the legislation and the formal agreement that was subsequently endorsed by the Premiers and Chief Ministers in Adelaide in November 1991. It was really the implementation of the agreement to which Mr Kaine had already been a party. So, Madam Speaker, I take Mr Kaine's comments with a grain of salt in view of that fact.

I think it is fair to say that this proposed legislation has attracted the very strongest support from national industry associations, building societies and credit unions. They have long felt that there was a need for higher prudential standards, for uniformity in standards, and for supervisory practices that would apply across all States and Territories, and that is what this legislation gives effect to. Madam Speaker, the legislation really does ensure that the community is afforded greater protection through the regulation of these non-bank financial institutions. There will be uniform standards, there will be improved standards and there will be greater protection for the depositors. There will also, of course, be provision for the well-managed institutions to provide a wide range of financial products. That is the short explanation of what this legislative package is all about, Madam Speaker.

I would like to comment also that the Northern Territory and all States except New South Wales and Tasmania have already enacted their legislation. This is a national scheme and the ACT is part of that national scheme.

Mr Kaine: New South Wales has not yet.

MS FOLLETT: New South Wales has not, Mr Kaine interjects, and, indeed, I just said that. New South Wales and Tasmania have not yet enacted their legislation. New South Wales, I am informed, expects to do so this week. The Tasmanian Parliament will not be looking at the legislation until July, I am informed; but Tasmania will be the last of all of the States and Territories to enact this uniform legislation.

I think it is important that we acknowledge that this is a national scheme and that the ACT is a relatively small player in that national scheme. We have, I believe, in the ACT six credit unions and one building society, so we are not looking to be one of the larger players in this national scheme. Nevertheless, I accept Mr Kaine's point that we should be very careful in enacting legislation that is appropriate to our particular circumstances. Members can be assured that that is what we have done.


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