Mr GARETH EVANS —My question is to the Treasurer. Has the Treasurer seen last week's warning from Mr Brian Gray, the chief manager of the Reserve Bank's supervision department, that a free market model of banking, based on greater disclosure but without deposit protection or like arrangements, could threaten the stability of the financial system? In light of this warning, does the Treasurer support his own department's submission to the Wallis inquiry calling for a removal of the deposit protection provision of the banking act?

Mr COSTELLO —The government views with some considerable pride the fact that it has set up the Wallis inquiry into the financial system and, as we have always made clear, the inquiry will be considering numbers of submissions. I suppose, if the Labor Party had something to say, it would consider that too. The outcome of the inquiry's deliberations will not be put in place by the government. It is an independent inquiry. It has people of exceptional talent and it will consider all the arguments for and against. To be frank, Mr Speaker, I think it is a good thing that we have diversity in the presentations to the committee—I think it is a very good thing indeed. In fact, I would be much more concerned if we got a unanimity of opinion. I think this does give the opportunity for a lot of different ideas to be looked at and to be argued out.

In relation to the report of the inquiry, the inquiry will be reporting early next year and the government will consider its report. When Stan Wallis was appointed to chair this inquiry, he was probably one of the most respected people in Australia. Nobody made any criticism of Stan Wallis. He is eminently able to consider differing viewpoints, eminently able to sift the pros and cons and eminently able to make recommendations. As far as the government is concerned, we welcome the fact that this will be a meaty inquiry with stimulating submissions to consider.