From pest control to a police prosecutor: The Coalition is unserious about financial services

About half of the Coalition’s lower house members have spots within the shadow ministry, including one that hasn’t even technically been elected yet.

Making the announcement on Wednesday afternoon was always going to be a tough ask for Opposition Leader Sussan Ley, given there were more portfolios handed out than Coalition members across both houses of Parliament.

Ley’s just lucky the Nationals pulled back from splintering the Coalition.

A key result for financial advice is that the Nationals backtracking has led to Pat Conaghan getting the gig as shadow assistant treasurer and financial services minister.

The Nationals member for Cowper is likely not one with whom advisers will be familiar – unless they happen to live somewhere between Port Macquarie and Coffs Harbour.

He joined Parliament at the 2019 election after a career that included time as a police officer, police prosecutor and then a solicitor in private practice.

His previous parliamentary experience was as shadow assistant minister for social services and the prevention of family violence, while his committee service has largely been in the areas of road safety, law enforcement, and social policy and legal affairs.

Notably absent is anything even remotely related to financial services.

It shouldn’t really be a shock, given the previous appointee also had no economics experience when taking the role in March last year.

The ifa readership quickly identified that among the qualifications listed on Howarth’s page on the Parliament website was a Certificate III in pest management, noting that this could come in handy in Canberra.

Among his other notable certifications listed on the Parliament site were a black belt in judo, a scuba diving qualification, and a diploma of business.

Even then, Howarth had at least spent 18 months as the assistant minister for community housing, homelessness and community services in the Morrison government, which is closer to financial services than anything the new shadow minister has on his resume.

Things aren’t a lot stronger when it comes to new shadow treasurer Ted O’Brien, though this appointment was expected as a reward for the Liberal deputy leader.

Also having never served in the Treasury portfolio previously, O’Brien’s elevation into the top job doesn’t feel like one based on merit given the grand total of 18 months of economics committee service under his belt.

His master of economics (international political economy) degree is a point in his favour.

Tim Wilson, whose election is largely in place despite the limited recount in the seat of Goldstein (he is still listed on the Liberal Party website as the “candidate for Goldstein”), will serve as shadow minister for small business, as well as industrial relations and employment.

Andrew Bragg as shadow minister for housing and homelessness, with productivity and deregulation thrown in for good measure. After all, there isn’t a lot of room for single portfolio shadow ministers in Coalition’s current state.

Both Wilson and Bragg had been viewed as potential options for the shadow financial services minister role and have both been vocal critics of the government’s proposed $3 million super tax. Conaghan, however, is essentially a complete unknown for the entire sector.

The shelves are empty

Maybe none of this should be a surprise, though, given the dearth of talent remaining to pick from.

The loss of experience within the Coalition has been well covered, but the flow-on effect is that there are now members of the shadow ministry that, as things stand, have quite literally never been elected.

Gisele Kapterian had to have an asterisk next to her name on the official announcement because her election to the seat of Bradfield is undergoing a recount. So thin is her margin that, at the time of writing, she leads independent Nicolette Boele by just two votes.

Kapterian has also never been an MP before yet is elevated into the shadow assistant minister role for both communications and technology and the digital economy.

“Gisele’s appointment is about confidence and the future of women in our party,” Ley said on Wednesday.

“It is a clear message to communities like Bradfield that if you support your local Liberal member, they will have a direct say in the decisions that change the direction of this country.”

She added that this shadow ministry “balances experience with new talent”, but it’s hard to see much of either in the Treasury portfolio.

“I have so many terrific colleagues that, as I said earlier, are not on this list, are certainly incredibly valued and will continue to play that very, very important role that all of us must in opposition,” Ley said.

On Treasury specifically, she claims it is a “fantastic line-up”.

No one in advice will weep for former minister Jane Hume being dumped out of the shadow ministry, but with such a thin bench of talent on the roster, it’s hard to believe she would be a worse choice for some kind of portfolio than what has been delivered.

The response from the financial services sector was also more tepid than these announcements usually warrant.

Not only were there far fewer statements circulated, but the ones that did make the rounds felt largely perfunctory.

Association of Superannuation Funds of Australia CEO Mary Delahunty, for instance, said the association looked forward to “working constructively with the new shadow ministry during the next parliamentary term to ensure superannuation continues to deliver on its promise of providing dignity and financial security in retirement, alongside being a pillar of economic stability for the nation”.

Financial Advice Association Australia CEO Sarah Abood was similarly restrained.

“Mr O’Brien and Mr Conaghan will play an important role in holding the government to account on key issues for the financial advice profession such as the Compensation Scheme of Last Resort and the Delivering Better Financial Outcomes reforms,” she said.

“The Australian financial advice sector requires substantial reform to achieve a regulatory regime that will deliver improved access and affordability of financial advice for Australians. I look forward to working constructively with Mr O’Brien and Mr Conaghan to ensure more Australians are empowered to achieve financial wellbeing.

“I would also like to thank former shadow assistant treasurer and minister for financial services, Luke Howarth, for his engagement with and support of the financial advice sector over the previous term and wish him well for the future.”

Maybe no one in the industry is excited to have to explain the whole sector to a new batch of shadow ministers all over again.