Senator JOYCE—Let us have that conversation. Can we ask a question now?

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CHAIR—Yes. It will be half an hour because we did have this conversation this morning when we let one area run longer. We do have other agencies which are important areas tomorrow morning as well.

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Mr D’Aloisio—From our point of view it may well be that Mr Cooper and I will come back. I will have a brief word to Ms Gibson, but maybe one of the commissioners will go back.

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CHAIR—Certainly. And we perfectly understand if not all of the commissioners are able to return. One question, Senator Joyce.

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Senator JOYCE—What is quite apparent is that you have acknowledged that there is market volatility so you have to be ever more vigilant. Would that be a fair statement?

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Mr D’Aloisio—It is absolutely correct. Part of us having increased the investigations and the research is for that purpose.

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Senator JOYCE—If something is going to go wrong it is going to go wrong now because now is when the stressors come in because the market is going down and margin calls are coming in. All the problems that arise, including short selling, are there. The question I am asking you is whether your work will be increased? The work of your department will be, or should be, more extensive than it possibly has been in the past?

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Mr D’Aloisio—Yes. We are all working pretty hard. The issue that you are going to is how are we allocating resources and certainly at this stage we are reallocating resources to cope with these new issues.

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Senator JOYCE—Can you cope with $110 million budget cut?

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Senator Sherry—In response to that, it is a budget matter, so I will respond. I can indicate that the enforcement funding for ASIC will be maintained for this financial year, 2007-08—

Senator Sherry—and for the next financial year, 2008-09, and then there will be further consideration for the financial year following.

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Senator JOYCE—Is that an election promise?

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Senator Sherry—Let me finish. Just to go back, the enforcement funding will be maintained for 2007-08 and for the next financial year of 2008-09. Then there will be further consideration for the following financial year. Secondly, there will be maintenance of what is known as the surveillance funding. The efficiency dividend will have application.

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Senator JOYCE—Do you have an efficiency dividend as well?

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Senator Sherry—Yes. The efficiency dividend will apply as appropriate to all—

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Senator JOYCE—It is—

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Senator Sherry—Can I finish?

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CHAIR—I am going to close the committee shortly so the more you interrupt the less we will have the final answer to this question.

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Senator Sherry—The announcement of the savings measure was made on 2 March 2007—that is almost a year ago—and it was costed in November but I am not sure of the precise date.

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Senator COONAN—The 23rd.

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Senator Sherry—Yes, the 23rd. It is apparent that circumstances have changed significantly given recent market volatility. Certainly they have changed since 2 March 2007 and therefore the funding maintenance that I have outlined has been considered in that context.