The Cabinet reshuffle announced yesterday by Prime Minister John Howard will cause some inevitable difficulties for the insurance industry. Ian Campbell, Parliamentary Secretary to the Treasurer and the person most responsible for many of the most recent negotiations over the Financial Services Reform Act (FSRA), will become Minister for Territories, Local Government and Roads. His replacement will be Ross Cameron, the present Parliamentary Secretary to the Minister for Family and Community Services.

While any reshuffle is inconvenient, the removal of Senator Campbell at such a sensitive stage of the FSRA transition means important negotiations may be stalled.

One issue that Senator Campbell has been involved in is the recent decision by the Australian Securities and Investments Commission to change the rules regarding commission disclosure in financial services guides. The National Insurance Brokers Association (NIBA) is understood to have relied on Senator Campbell in its bid to force a reappraisal of the last-minute disclosure decision. 

“It’s certainly not a change we welcome at this time,” NIBA CEO Noel Pettersen said last night. “But we have no choice other than to accept it and move on. Reshuffles happen.”

Senator Campbell’s responsibilities included insurance and superannuation, the administration of the Australian Prudential Regulation Authority, the Australian Competition and Consumer Commission, the Productivity Commission and the HIH Royal Commission. Mr Cameron, the MP for Parramatta, has a lot of ground to cover to get across all these responsibilities.

However, the challenge will be assisted by his service on two crucial – and relevant – Government committees: Financial Services and Regulation; and Treasury, Finance and Public Administration.