Stuart Robert (Fadden, Liberal Party) Share this | Hansard source

I rise to support the motion moved by the member for Blaxland, and indeed the need for financial literacy. We cannot have a sensible discussion in this House with respect to the government’s role in financial literacy without going back to 2004, when the then Howard government established a Consumer and Financial Literacy Task Force to develop a national strategy to improve consumer and financial literacy in this country.  The task force recommended that a national financial literacy body be established to take a strategic approach to the issue and to facilitate improved cooperation, efficiency and effectiveness amongst provider organisations. The then government committed $5 million to establish a National and Consumer Financial Literacy Foundation and a further $16 million over two years for an information program, a total of $21 million.

In 2006, then Minister Dutton—whom, I note, sits at the coalition table as we speak—celebrated the first year of the establishment of the Financial Literacy Foundation. He stated:

One of the key achievements of the Foundation has been to work with the States and Territories to produce a National Curriculum Framework for Financial Literacy in schools for years 3, 5, 7 and 9 …

Other achievements that then Minister Dutton should rightly be proud of include the implementation of a pilot program, in partnership with the Master Builders Association, to introduce financial literacy training to cadets, apprentices and the MBA membership; the establishment of an Education and Trainers Network; the development of working relationships with a wide range of partner organisations that deliver financial literacy; and the improvement of cooperation between the FLF and Innovations and Business Skills Australia.

The Commonwealth government’s website Understanding Money was created by this foundation. It gives all Australians the opportunity to increase their financial knowledge and better manage their money. It provides a national focus for financial literacy; builds the capacity of all Australians to better understand and manage financial risk and take advantage of increased competition; raises awareness of financial literacy and its benefits; creates opportunities for Australians of all ages to learn more about money; and provides practical support to educators and trainers to improve the availability of quality financial literacy education.

The foundation has partnered with government, industry and community sector organisations to create Understanding Money resources. Some of these include the ABA, CPA Australia, the Australian Stock Exchange, the Financial Services Institute of Australasia, the Financial Planning Association of Australia and others. The foundation’s advisory board provides guidance on these issues and has nine members, chaired by Mr Paul Clitheroe. The Howard government provided $21 million over two years.

On 1 July 2008, the functions of the foundation were transferred by the Rudd government to ASIC. On 13 May, the Treasurer stated:

The transfer of the Foundation to ASIC consolidates the Australian Government’s financial literacy response … and strengthens ASIC’s role in safeguarding Australia’s economic reputation and wellbeing.

I am a little surprised, though, that ASIC’s website says:

Full details on how the Foundation’s functions will fit in to ASIC’s overall education initiatives, using ASIC’s existing resources, are still being worked out.

This function was transferred nine months ago. If the Rudd government were serious about financial literacy—and I honour the seriousness with which the member for Blaxland views the area of financial literacy and I note the work he is doing in his electorate—then why, nine months after transferring it to ASIC, is ASIC still unsure about how it is all being worked out? In the 2008-09 budget, the Minister for Families, Housing, Community Services and Indigenous Affairs announced a $20 million commitment over four years to expand financial counselling services and support for working families under financial pressure. In 2004, then Minister Dutton committed $21 million over two years. The Rudd government committed $20 million over four years. Something does not quite fit with the Rudd government’s commitment to assistance with financial counselling and services.

Senator Sherry, in his speech on 2 July 2008, outlined the Labor government’s plans for financial literacy and financial counselling: transferring the foundation to ASIC; getting ASIC to develop and coordinate a long-term, national strategy; getting ASIC to maintain a national financial literacy hub; getting ASIC to develop and promote a range of projects; getting ASIC to develop initiatives targeted at tertiary students; and getting ASIC to address attitudinal and behavioural barriers. That is all fine in principle and fine in theory. I am just concerned that ASIC’s website says, ‘Full details on how the functions will fit in to our overall initiatives are still being worked out.’ (Time expired)

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