The Prime Minister, John Howard, has decided to scrap the financial services and regulation portfolio from his new government in a reshuffle of his front bench ministry announced last week.
The decision leaves the financial services sector without a dedicated minister for the first time since Howard initiated the Financial Services and Regulation portfolio after his 1998 election win.
The former Minister for Financial Services and Regulation, Joe Hockey, is considered one of the biggest losers from the Prime Minister’s ministerial reshuffle, being shunted sideways into the Small Business and Tourism portfolio and missing out on a cabinet position.
Hockey, who had been touted as a contender for the Finance portfolio made vacant by a retiring John Fahey, was beaten to the post by outgoing minister for Industry, Science and Resources and key Howard supporter Senator Nick Minchin.
The responsibility for financial services now reverts back to the Treasurer, Peter Costello, where it belonged before Hockey was appointed as the inaugural Minister for Financial Services and Regulation in 1998.
However a spokesperson for the Prime Minister says the responsibilities may ultimately be divulged to Senator Helen Coonan, who was promoted to Minister for Revenue and Assistant Treasurer as part of the reshuffle.
The former Assistant Treasurer and Coalition spokesperson on superannuation, Senator Rod Kemp, becomes the new Minister for Arts and Sport in the reshaped ministry.
The financial services industry today reacted cautiously to the announcements.
Investment and Financial Services Association chief executive Lynn Ralph says the industry may benefit from closer attention by the treasurer, although she reserved ultimate judgement until the government makes public a clearer breakdown of responsibilities between Costello and Coonan.
On the opposition benches, Senator Stephen Conroy, the shadow Minister for Financial Services and Regulation under Kim Beazley, will retain his responsibilities for financial services, but has also been promoted to Deputy Leader of the senate by new Labor leader Simon Crean.
Conroy will also be the Labor party’s spokesperson on small business, ensuring his rivalry with Hockey continues.
Tasmanian Labor Senator Nick Sherry, who moved to the backbench after attempting to commit suicide in 1997, returns to the opposition frontbench as shadow Minister for Retirement Incomes and Savings, where he will take over responsibility for the Labor party’s policy on superannuation from Kelvin Thomson.
Thomson, the former shadow Assistant Treasurer, has been appointed shadow Minister for Environment and Heritage.
