Question Time AU

Bill Debate · In Committee

Pacific Banking Guarantee Bill 2025; In Committee

Senate · Thursday 28 August 2025

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The debate focused on the Pacific Banking Guarantee Bill 2025 during committee stage, specifically addressing concerns raised by the Scrutiny of Bills Committee regarding the use of a standing appropriation. Senator Roberts questioned the lack of parliamentary oversight and the open-ended nature of the financial commitment. Assistant Minister Chisholm and Minister Ayres defended the measure as necessary to secure Australian banking presence in the Pacific, arguing that annual appropriations were insufficient for potential urgent liabilities. They clarified that the guarantee was limited to specific eligible liabilities, involved annual fees paid by the bank, and included commitments to maintain services and invest in digital infrastructure.

Outcome

The debate concluded with Minister Ayres reiterating that the guarantee supported regional banking access and did not provide direct funding to banks.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Malcolm Roberts (QLD) (Pauline Hanson's One Nation Party) One Nation

Senator Roberts raised concerns regarding the bill's use of a standing appropriation, which he argued reduced Senate oversight compared to annual budget processes. Roberts questioned whether the guarantee was effectively an open-ended budget allocation with commercial-in-confidence terms that prevented transparency. Roberts also challenged the duration of the agreement, noting the absence of a sunset clause, and asked why the government did not rely on World Bank initiatives instead. Roberts further queried whether the guarantee extended to loans made by Australian banks to Pacific governments and whether this provided an unfair competitive advantage to major banks.

Government response

Tim Ayres (Minister for Industry and Innovation; Minister for Science) ALP NSW

Minister Ayres clarified that the Commonwealth provided a limited guarantee to ANZ for operations in nine Pacific markets and Timor-Leste, covering only specific eligible liabilities triggered by defined events. Ayres stated that the terms were kept confidential to avoid distorting Pacific financial markets, but confirmed that commercial risk assessments indicated a very low likelihood of default. Ayres emphasized that the arrangement was not a subsidy or bailout, as ANZ paid an annual fee, and highlighted commitments to maintain face-to-face services and invest $50 million in digital banking enhancements. Ayres argued the measure supported economic resilience and trade in the region without disadvantaging the broader Australian banking sector.