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Tuesday, 25 March 1997
Page: 2354

Senator KEMP (Assistant Treasurer)(1.32 p.m.) —I do not discuss cabinet matters with you. You will have to wait until you get into government and get into cabinet. That may be a little time off for you, Senator Sherry. If you allowed all complying funds to offer RSAs—there are some 140,000 complying funds—

Senator Sherry —It is up to them.

Senator KEMP —This includes the mum and dad funds. I knew you were attempting to undermine RSAs. I knew you were attempting to make the situation unworkable, and I am delighted that at least your hand has been so obviously revealed. It is, of course, an absurdity to allow that to occur. We do not propose to go down that road. We have indicated to you—I think we have revealed another problem that your amendment would open up—that there are 140,000 complying funds. You said, `Let's have all complying funds.' I say, `Okay, that is 140,000.' This is the advice I have. They are the small, mum and dad funds and they will be able to offer RSAs. Is that right? Is that your intention? What would that do for the supervisory approach? What would it do for the guarantees which could be offered?

I think we have addressed the substance of your problem—the public offer superannuation funds, the retail funds. We have indicated to you that we want to ensure that there is proper choice. Senator Lundy, at least, has endorsed choice. It is a rare thing to have a Labor senator endorsing choice, but she endorses choice and we welcome that. Our position is clear. The legal arrangements you are proposing, I think, simply do not work.