Colin Tate (director, ConexusFinancial): We have a number of original architects of the SG in the room. Garry Weaven’s here, along with Don Russell, and Tony Cole who was in Treasury back in those days. Can I have some comments about what the Government’s proposed, and perhaps any questions you may have in regards to the SG?

Garry Weaven (chair, Industry Funds Management): Well, I have said, in one public statement, that if you take the measures together, the Bowen announcements and the response to Henry – I don’t want to call them Henry, because Henry was opposed to them, so we’ve got to find a new name for the Government’s initiatives that have nothing to do with Henry, it seems to me. But the Government announcements on Sunday, together with Chris Bowen’s earlier announcements, clearly are the most significant event for superannuation, and the system of superannuation, in 20 years. I know [Treasurer] Wayne [Swan] said ‘in living memory’ – it depends how old you are, I suppose. But they’re certainly very significant, and will become really significant if they’re passed. And that of course is the big issue, because none of these measures are likely to be available this side of at least one election. So that’s an issue. I think it’s a well-thought out package. Not everyone will like them, but – and as you know, I don’t give praise very easily – I was impressed by the fact that the set of financial advice measures gave the appearance that these matters had been thought about very, very carefully, and some of the obvious huge loopholes closed off, at least conceptually, in advance, so that the reforms might actually work. Still a big thing to translate that into black-letter law. On the SG front, much bolder than I believed any government would do, because it can be portrayed as a hit to employers, and the small business lobby in particular has always been rabidly opposed to any SG.

Colin Tate: So you’re not disappointed it wasn’t 15 per cent as originally planned?

Garry Weaven: No, I’m not because as I say, I think it’s pretty bold and far-sighted. It is obviously phased, which is clever. It’s exactly what Paul Keating did. It’s the appropriate way to do it, as well.

Colin Tate: Is it phased over a too long a period?

Garry Weaven: That’s the way things need to be done, I think. And you get there in the end. The only other thing I would say is that to some degree, because of the way in which this has been done, the fact that it’s all now related to the continuation of government, it seems to me that a large part of the superannuation industry are now conscripts in the war with the mining industry. It is unfortunate that that circumstance arises. We have no desire to be at war with the mining industry. We’re major investors, in particular in the more stable end of the mining industry, and the major Australian companies. Hopefully, ultimately the more sensible voices and more mature elements of that industry will conduct the debate.