Labor's paper on corporate governance was a slip-shod policy attempt lacking any evidence of original thinking, the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, said today.
He said the paper was "nothing more than a cobbling of existing law, what the Government has foreshadowed it will do and parts of the Ramsay report, which this Government commissioned.
"The paper fails to say how Labor will address many of the issues its lists, such as protection for whistleblowers.
"It's easy to say you will look after whistleblowers, but Labor is silent on how it would do it.
"The paper is littered with words like ensure and examine - a sure sign Labor has taken the easy way out of framing thorough, well reasoned, constructive policy."
Senator Campbell said Labor's plan to restrict the number of share options available to executives of a company to five per cent of shares on issue showed the flimsiness of the paper.
"For major corporations, five per cent would have no effect whatsoever. For example, the level of executive share options currently issued at BHP Billiton is only 0.2 per cent of shares on issue, so Labor's chest beating would be counter productive.
"That's the danger in Labor's knee-jerk response, which is not based on any coherent framework of best practice principles.
"At a time when companies like the Commonwealth Bank are voluntarily reducing or abolishing the use of options the ALP seems to be inviting them to issue more."
CANBERRA
29 August 2002
Further information: Wayne Grant (02) 6277 3955 or 0407 845 280