In a speech to the American Australian Association in New York yesterday (Tuesday US time), Mr Hockey said the inquiry will address, amongst other things, the capacity of the nation to fund its growth and investment needs over the decades ahead.
“Our Financial System Inquiry will undertake a general health check on our industry, which has come through the global financial crisis in exceptional shape,” he said.
The “once every fifteen-year review” will look to shape the future of Australia’s financial services industry in a “positive and co-operative environment”, he said.
Mr Hockey reiterated his belief in the need for a “root and branch” review of Australia’s competition policies, and said the government is determined to ensure that there is “a simple and predictable regulatory environment for new and existing market participants across all sectors of our economy”.
This will be achieved by lightening the regulatory burden on business through deregulation, he said.
“We will have dedicated ‘deregulation units’ in each government department to identify regulations that can be removed. In Treasury alone, we have already identified over 1,000 regulations ready for abolition,” he said.
“And we will deliver simplicity in process with a one-stop shop for environmental approvals, which will cover both state and federal obligations. Our commitment is to reduce the regulatory burden on business by $1 billion a year.”
Mr Hockey also reiterated the importance of infrastructure investment based around short-, medium- and long-term infrastructure priorities.
“We will invest additional money in new and existing productive infrastructure. We will fast track key projects to build the roads, bridges and freight rail projects desperately needed across Australia. There is much work to be done, with an estimated pipeline of $800 billion in infrastructure needs,” he said.
In both developed and developing countries the challenge is to remove the impediments to private sector investment in infrastructure, he added.
“So in the Australian context, the government will consult with the finance sector and key stakeholders, including the state governments, to investigate alternative financing options, which will encourage further private sector involvement,” he said.
“This will help to boost the provision of new infrastructure beyond the levels that can be achieved with government funding alone.”
