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Legislative Assembly for the ACT: 2001 Week 6 Hansard (15 June) . . Page.. 1962 ..
MR HUMPHRIES: Well, even some banks have been considered risky in the past, if that is an indication. It is for that reason that we need to have access to derivatives and, by passing this bill in principle-which you have already done-members can be assumed to agree that we do need to have derivatives.
This amendment is not about derivatives. It is about the definition of derivatives and the question of whether we use the word "enhancements"-whether we allow derivatives to be used to protect or enhance the ACT's investment. This is a semantic argument. If we use a derivative to shore up the value of our investments, are we protecting those investments, or are we enhancing those investments? That is a semantic question.
Mr Kaine: I do not think you're doing either, frankly.
MR HUMPHRIES: That may be the case, Mr Kaine, but my belief is that we ought to take the advice of people who have expertise in these areas.
The Labor Party actually moved to allow the use of derivatives a few years ago, and it was because of concerns raised at the time by you, Mr Kaine, specifically, that it was not proceeded with. We have since got advice that we should use derivatives-very high-quality advice-which was what was suggested at that time that we do. That is what we are trying to do now.
Do we use the word "enhancements", or do we just use the word "protect"? Do we just protect our assets, or do we protect and enhance our assets? I would argue that there is a very fine line between those two things, and we will make an impossible position for the officers making day-to-day decisions about these things if we tell them they can protect assets but not enhance them. I cite in support of that point of view divine authority. Let me read a passage from scripture which very convincingly gives us an indication of what we should do on this matter. I will read from Matthew 25:
For it will be as when a man going on a journey called his servants and entrusted to them his property; to one he gave five talents, to another two, to another one, to each according to his ability. Then he went away. He who had received the five talents went at once and traded with them; and he made five talents more. So also, he who had the two talents made two talents more. But he who had received the one talent went and dug in the ground and hid his master's money. Now after a long time the master of those servants came and settled accounts with them. And he who had received the five talents came forward, bringing five talents more, saying, 'Master, you delivered to me five talents; here I have made five talents more.' His master said to him, 'Well done, good and faithful servant; you have been faithful over a little, I will set you over much; enter into the joy of your master.' And he also who had the two talents came forward, saying, 'Master, you delivered to me two talents; here I have made two talents more.' His master said to him, 'Well done, good and faithful servant; you have been faithful over a little, I will set you over much; enter into the joy of your master.' He also who had received the one talent came forward, saying, 'Master, I knew you to be a hard man, reaping where you did not sow, and gathering where did you not winnow; so I was afraid, and I went and hid your talent in the ground. Here you have what is yours.' But his master answered him, 'You wicked and slothful servant! You knew that I reap where I have not sowed, and gather where I have not winnowed?
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