IINTERVIEWER: My guest today is the Australian Minister for Financial Services and Regulation. Thank you very much for joining me.
JOE HOCKEY: My pleasure, Amanda.
IINTERVIEWER: So what's behind the Australian Stock Exchange's move to a new venue?
JOE HOCKEY: I think the Stock Exchange needs more space and over the last few years there has certainly been a focus from governments and the Stock Exchange to increase retail investment. We expect that the Australian Stock Exchange will have the largest retail investor component in the world after the next launch of Telstra so it's good that they have new facilities that are very encouraging of people to go and have a look.
INTERVIEWER: And are these new facilities fully modernised and Y2K compliant?
JOE HOCKEY: Well, certainly they are amongst the most futuristic facilities in the world. My understanding is they're fully compliant and the Chairman of the Stock Exchange, Maurice Newman, has done an outstanding job as chairman of the government's Y2K Compliance Committee, so I'm very confident it is Y2K compliant. The best part about the building is it's a 'flagship' in our fleet and in that way is helping us to promote Australia as a global financial centre.
IINTERVIEWER: And what does the move mean for Australia's stock market?
JOE HOCKEY: Australia's stock market is the second-largest in the region. In fact, here in Tokyo, Lehman Brothers provided me with a report today which indicated that the Australian Stock Exchange and the Sydney Futures Exchange are amongst the first tier, in fact first amongst equals, in their future preparations for developments in global markets and again this is an example of the futuristic thinking of the Australian Stock Exchange.
IINTERVIEWER: On the other topic we last spoke to you in July, (which is) your efforts to promote Sydney as a global financial centre. What sort of progress has been made?
JOE HOCKEY: We've made solid progress, we've always said that this is a brick-by-brick construction job. We are working away, including in the last five days I've been in Singapore and then here in Tokyo helping to sell the message about Sydney. We've had over 30 meetings in five working days trying to get the message that for 211 years our nation has carried the burden of distance, now with the Internet and new information technology and telecommunications, the counter-party can be sitting next to you or on the other side of the earth.
That's a great advantage for us. The second part, which is important, is that people are lauding us for our regulatory reforms and we are being praised and in some cases we're the envy of the region for the hard reform, particularly of taxation, that we've undertaken over the last few years.
IINTERVIEWER: And have any major companies or leading banks shown an interest in moving their operations over to Sydney?
JOE HOCKEY: They certainly have and they are doing it. We've seen Goldman Sachs significantly increase operations and Morgan Stanley increase operations over the last six months. Deutsche Asset Management have announced that they are moving their headquarters for their entire Asian funds management to Sydney - that's a great leap forward - and we're continuing to build slowly a very significant financial centre.
IINTERVIEWER: Australia has recently cut company tax and capital gains tax, what's been the reaction here in Tokyo to those tax reform changes?
JOE HOCKEY: They are seen as outstanding initiatives, and they're very important as they indicate that we're very serious about building a strong Australian economy. The fact that we have had significant industrial relations reform is not lost on them, the fact that we've undertaken the most significant taxation reform in our history is not lost on them, what they want to know is can we continue the economic miracle that everyone is lauding us for.
The good news is we can sustain economic growth. We need the cooperation of the Opposition parties, particularly the Labor Party who have opposed many of our initiatives, but we keep pushing through.
IINTERVIEWER: Thank you very much for joining me today.
JOE HOCKEY: Thank you very much.
IINTERVIEWER: I've been talking with Joe Hockey, Australian Minister for Financial Services and Regulations.