Australia. And that’sthe opportunity that I thought I wasoffering the industry.

And I’m sorry Ididn’t make the appropriate phone calls.Fair enough there are political risks thatare not to be trivialised, but I wouldurge people to look at the opportunitiesas well as the threats.Garry Weaven: I agree, Nick, theindustry hasn’t any right just to saybecause we’re there and we have jobswe should get whatever we want, but itactually is a more sustainable industrythan making petrol-based cars. It ismore promising as a long term comparativeadvantage, and part of thatcomparative advantage is national savingsas you know. And I actually agree,I’m in the same camp as Tony as a longterm advocate of variable super.

I onlywant it to go one way though.Tony Cole: Intellectually I neverthought I could do that.Garry Weaven: Well I tell you, oneday we will return to an inflationarythreat environment and that is the timewhen governments need to take partof their potential tax take and put thatinto super. Instead of handing it out inpolitical bribery.Nicholas Gruen: As they shouldhave been doing for years.Garry Weaven: It’s a real politik approach. Because you cannot wean apolitician off giving out money at election time.

So you give voters the secondbest thing to cash in hand which is cashin their own personal super account.With full preservation rules and a pensionsystem at the end of it.I think that is reasonable, and youcan vary that and you can make it clear that it does depend on the budgetconditions at the time, the inflationary environment, your economic objectives year on year.Nicholas Gruen: But the rate can’tgo down?Garry Weaven: Well it can comefrom a base of 9 or a base of 12 with occasionaltop ups when the economy andfiscal policy allows it to.

That would beentirely understandable and would haveboth a political effect and the long termsavings effect in my view. So I’ve alwaysfavoured that. If you think throughthis crisis, that’s where we ought to beheading. It’s very likely, I think, to be aninvestment led recovery, not a consumptionled recovery. And I think maybewe should focus on that a bit.Tony Cole: Well none of us areopposed to the government spendingmoney on building infrastructure,helping people to reduce their carbonemissions. Michael Bailey: But for your SGproposal to work, you’re saying it’sgot to be able to come down to meeteconomic shocks.Tony Cole: That’s my view, and onthe basis that I don’t think monetarypolicy can be effective because it workson such a narrow slice of the economy.

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