Today Kim Beazley said that if Labor ever won office it would hold a Royal Commission into the collapse of HIH.
This directly contradicts the statement of his deputy Simon Crean on Sydney radio on Monday:
"Well it may be that we have to have some judicial inquiry. I don't think you can make that call at this stage until we see the full extent of the problem from the provisional liquidator".
The Government has consistently stated that our primary focus at this stage is on helping the HIH policyholders who are facing financial hardship.
Mr Beazley also says that the Government was solely responsible for the legislative formula. This is totally incorrect.
The current General Insurance Act has been in place since 1973 and during 13 years of government, Labor did nothing to change the law.
The current Government is the first to reform this law in nearly 30 years.
Mr Beazley seems to have forgotten that his own party unanimously supported the new financial system - the creation of APRA and ASIC and in comments in Parliament has supported the creation of the prudential regulator [see the attached].
Whatever investigation, or investigations, are needed to get to the bottom of the HIH collapse will be undertaken without exception.
In the interim, all the Government's efforts are directed towards HIH policyholders facing hardship.
16 May 2001
Media contact: Matthew Abbott, Minister's office 0413 076 213
ALP SUPPORT FOR APRA
- "...we consider [legislation furthering Wallis] to be important in establishing regulatory and prudential arrangements, and we welcome and support that direction"
Simon Crean, Hansard, 29/3/99
- "As the recent crises in Asian economies stand testament to, sound financial management and prudential regulation are important protections for every national economy. Many of the recommendations implemented from the Wallis report have contributed to the establishment of a sound prudential system that has served Australia well to date"
Simon Crean, Hansard, 29/3/99
- "A single prudential regulator promotes consistency in regulation across the sector, adding certainty to the industry and encouraging development"
Simon Crean, Hansard, 29/3/99
- "..our..support for the initiative of creating two super regulatory bodies, one overseeing the prudential requirements of the financial services market and the other overseeing the consumer protection aspects"
Kelvin Thomson, Hansard, introduction of Wallis legislation, 8/4/98
- "We see the creation of a single national prudential regulator in this form as desirable"
Gareth Evans, Shadow Treasurer, Melbourne, 19/8/97
- "There was...one issue in respect of which I was eagerly awaiting the inquiry's recommendation. That was the question of the establishment of a single regulator for all financial institutions in Australia...I hope this recommendation will have the support of all States...The Government will wholeheartedly support the recommendation."
Michael Egan, Hansard, 10/4/97
- "I am delighted...the government has chosen to put in place this legislation...It recognises that, by having a single regulator...at arms-length from government but not from government policy, as it should be...it will provide that stability and that level of supervision that consumers expect"
Steve Martin, Hansard, 8/4/98