Industry unaffected by ministerial musical chairs

The financial services sector will be largely unaffected by the Cabinet reshuffle announced by Prime Minister, John Howard yesterday despite Parliamentary Secretary to the Treasurer, Senator Ian Campbell being promoted to Minister for Territories, Local Government and Roads.

Senator Campbell, who had carriage of financial reporting, corporate governance, foreign investment, competition and structural reform, will be replaced in the Treasury portfolio by the current Parliamentary Secretary to the Minister for Family and Community Services, Ross Cameron.

The major outstanding legislation falling within Senator Campbell’s jurisdiction is the latest iteration of the Corporate Law Economic Reform Program (CLERP), but it is understood that the major work on this legislation is substantially complete.

Cameron is a solicitor and already has some background with respect to the Government’s financial services and corporate law agenda having sat on the Joint Statutory Committee on Corporations and Securities.

However the Australian Labor Party Opposition has already sought to probe for any weaknesses within the Treasury portfolio with both the Shadow Minister for Financial Services and Corporate Governance, Senator Stephen Conroy and the Shadow Minister for Retirement Incomes, Senator Nick Sherry attacking Government policy.

Conroy questions the Government’s approach to dual listed companies in light of a research paper sponsored by the Australian Council of Super Investors (ACSI) which claims that dual listed companies erode shareholder rights.

He says that at Estimates Committee hearings, the Opposition has consistently raised concerns about the application of the Corporations Act to the dual listing structure of BHP Billiton.

Conroy says the Opposition will be supporting calls by ACSI for Government to initiative a comprehensive policy review.

For his part, Sherry renewed his attack on the Government’s agreement with the Australian Democrats to introduce a superannuation co-contribution for low-income earners claiming it will open the way for high income earners to contribute to low income spouses.