Today the Minister for Financial Services and Regulation, Mr
Hockey, and I are announcing details of the Government's strategy
to promote Australia as a centre for global financial services (CGFS).
Australia has the potential to develop further as a CGFS and to gain
a greater share of world financial services business. That potential
rests on a number of Australia's advantages including an open
and stable financial system; a highly skilled workforce; cost-competitive
business conditions; sound macroeconomic fundamentals and a time zone
advantage over other major regional markets which flows from Australia's
earlier market opening time. The intense international competition
for financial services business means, however, that Australia needs
to pursue more actively its role as a CGFS.
The Government's key role in promoting Australia as a CGFS is
to ensure that the overall economic and regulatory framework continues
to be of international best practice. The implementation of the A
New Tax System reform proposals, the progression of business tax
reform in the context of the Ralph Review of Business Taxation, and
the maintenance of sound macroeconomic policy settings are crucial
elements in that framework.
There is also an important role for the Government in facilitating
more effective and coordinated promotion of Australia as a CGFS. In
recognition of this, the 1999-00 Budget provided $7 million over the
next two years to fund this promotional strategy. Today's announcement
provides further details on this strategy.
International Financial Centre Task Force
An International Financial Centre Task Force will be established within
the Department of the Treasury and located in Sydney to develop and
implement a coordinated CGFS promotional campaign. It will also provide
policy advice on this issue to the Government.
The Task Force will become operational on 1 July 1999, be staffed
with professionals from both the private and public sectors and will
be headed by a senior financial sector executive, with considerable
industry experience and marketing expertise. The Task Force will have
a two year life span after which it is envisaged that the CGFS promotional
strategy will be taken over by the private sector.
The Task Force will report to the Minister for Financial Services
and Regulation, Mr Hockey, who will lead the campaign to promote
Australia as a CGFS.
To assist the work of the Task Force, the Government will also establish
a CGFS Committee of Regulators, chaired by the Treasury and including
the Reserve Bank of Australia, the Australian Prudential Regulation
Authority, the Australian Securities and Investments Commission, the
Australian Competition and Consumer Commission and the Australian
Taxation Office.
The Committee of Regulators will meet regularly to consider CGFS regulatory
and promotional issues and will report to the Treasurer and Minister
for Financial Services and Regulation.
Other elements of the strategy
Other elements of the strategy which will complement the promotional
campaign include:
* improved data collection to benchmark Australia's performance
and assist the long term development of policy options to promote
Australia as a CGFS;
* a range of education and training initiatives to help Australia
become a key training ground for the financial sector; and
* the re-opening of Treasury's regional office in Singapore
as part of Australia's High Commission to improve the quality
of advice to the Government on regional economic and financial
developments.
This initiative will enhance Australia's capacity to participate
fully in the strong global growth in the financial services industry
to the benefit of all Australians.
17 May 1999