Nola Marino (Forrest, Liberal Party) Share this | Hansard source

The National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Bill 2011 addresses some key issues in the use of credit in the form of home loans and credit cards. To be specific, it aims to ensure that credit card usage is not approved above the credit limit, except in certain circumstances, and to specify an allocation hierarchy for payments made under credit card contracts. It also requires credit providers to make the details of products available in a simple and convenient manner in a so-called key facts sheet.

These and other changes are proposed because the government is concerned, and rightly so, that credit can become a burden on citizens. But I find it really quite incongruous that it is this government that is expressing concern about the ability of Australians to manage their debts when it is this Labor government that has itself wallowed in debt—in fact, the highest debt in Australia's history. This Labor government is apparently concerned about people going too far into debt but will force a total public debt of $107 billion on the Australian people. It is this Labor government that suggests limiting additional borrowings on the credit cards of Australian citizens that is itself borrowing $135 million a day. It is this Labor government that wants to ensure that repayments Australian citizens make go to paying off first the debt with the highest interest rate, while at the same time leaving the Australian public footing an interest bill of $18 million a day to pay for Labor's debt splurge. I understand the intent of this bill, but the government should be applying these principles to its own management of the Australian economy. It is a case of taking the log from your own eye before pointing out the splinter in another's.

This bill seeks to prevent credit card debt being extended beyond initial limits except in 'certain circumstances'. That might be a good idea for the Australian government as well. What would 'certain circumstances' include for a Commonwealth government? This government, as a part of the budget process, is increasing the credit limit it gives itself.

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