20 November 2003

Labor Prescribes Regulatory Overkill For Super

Labor's plan for superannuation is to burden Australian workers and Australian business with more red tape, more prescription and more regulation without any real benefit, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.

"It's difficult to see Labor's point when so much detail is lacking but what is evidently clear is Labor's recipe for Australia's super system is regulation, regulation, regulation.

"All this prescription, regulation and red tape will ultimately cost super funds more money to administer so who will it hit in the hip pocket? Australian workers.

"Even industry groups are calling Labor's stab at policy misdirected as well as `short on detail and practicality'.

"From Mark Latham last week announcing Labor would force funds to offer the same products and deny workers the right to have a say about how to handle their super, to Simon Crean's announcement today which continued Labor's trademark heavy-handed approach.

"Crean talked about industry safety and accountability - issues which will be debated in Parliament during the next sitting weeks as part of the Government's Superannuation Safety Amendment Bill - so I expect the full support of Labor Senators on this Bill.

"Superannuation has never been more safe and more secure and the reforms contained in this Bill are testament to the Government's commitment to continuing to raise the bar on super safety.

"In relation to fees, the Government's view is that greater competition rather than more prescriptive measures will force funds to put their best foot forward and allow consumers to leave an uncompetitive fund.

"The Government's package of superannuation reforms including the $1.3 billion matched co-contribution and surcharge reduction package as well as Choice of fund and portability are policies which hand back control of a large savings vehicle to Australian workers.

"The Government's drive for fee disclosure through the Financial Services Reform Act will ensure comparability and informed choice by workers and do more to create a competitive environment and subsequent downward pressure on fees than the blunt measures Labor is suggesting.

"Labor continues to play catch-up on policy and continues its tradition of regulatory overkill leaving workers with a grab-bag of minor policies designed to take control out of their hands and deliver it into Labor's."