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ABC News Breakfast -

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(generated from captions) Liddy has throwne the committee

today. He has at least asked

them to give half the bonuses

back. Back to

back. Back to the Government's

plans for executive pay-out

legislation. Senate Nick Sherry

is the Minister for Corporate

Law, he joins us now from

Canberra. Good morning. Good

morning. It turns out not all

companies are going to have to

comply with these new laws,

which ones won't? We're dealing

here with major reforms to the

golden handshakes, termination payments, in

payments, in Corporations Act,

other matters will be

considered by Professor Fels in

his examination of other parts

of the equation in respect of

executive pay sghsmt what

proportion of companies in

Australia won't have to comply

with these new laws? What I do

know is the vast majority of

companies are covered by the

companies are covered by the

Corporations Act of Australia.

And Professor Fels can examine

where there may not be, for

some particular legal

circumstance, coverage by the

Corporations Act. He can deal

with that matter. This new law

focuses on termination

payments. Won't companies be

easily able to get around this

by including other measure in

their payment strategies? In

of terms of the - that second part

of the equation, the executive

remuneration is established

when someone is employed.

That's a matter that Professor

Fels will deal with. But this

terms of the restraint and the

changes we're making to golden

handshake terminations, and the

new caps, the new

accountability to shareholders,

et cetera, I believe it will be

it will effective. I certainly believe

it will be effective, because

these measures reflect not just

community concern, they also reflect shareholder concern.

And that's the feedback the

Government's been receiving

consistently. These are

considered measures. We haven't

rushed this. We've been giving

this considerable examination

for the last section months.

And as I've said, quite

And as I've said, quite often,

the ear ar of - era of the gold

watch, retirement gold watch

has been replaced by the era of

a - in the last decade

particularly of of a truckload

of gold bull onion. We think it

is time to change some of the

culture in this area. We think

these measures will be

effective. It also might be the

year of sneaky ways to get

around your new laws. You're

not conceding that companies

will find ways of

will find ways of getting

around this? What we're going

to do now we've announced the

changes we intend to make,

we'll be consult ing about the

details of the legislation,

there'll be an exposure draft,

and we will try and - we will

any make sure that loopholes and

any of these areas are

identified in that legislation

and consultation period.? How

long will it before before

Professor Fels makes his

recommendations and this gets

put through the Parliament?.

Professor Fels has up to 9

months to provide us with the

overview and solution in terms

of that side of the equation,

executive pay going forward. In

terms of the limitations on

terms of the limitations on

golden hand shakes and the

changes we announced yesterday,

there'll be amems to the

Corporations Act, there will be

an exposure draft and I want to

see that go through the

Parliament by the end of this

year.? What about the argument

that this will undermine effort

by companies to attract talent

from overseas. Well, look,

there is a ledge et mat issue

about international

competitiveness. And Professor

competitiveness. And Professor

Fels is being asked in his

terms of reference to consider

that. But I have to say, I

mean, I meet top Australian

businessmen every day of my

working week and I have to say

we've got a lot of - an

abundance of talented

executives in Australia and

at whilst Professor Fels will look

at this issue of international

competitiveness I think it's

somewhat overdone. I think

we've got this sort of

Hollywood-type culture and I

think that whilst there is

validity on occasions to

recruit international

executives, it's an

international market, I'm very

confident we've got that home

grown Australian talent who can fill most of these positions. Using that argument

talent within on the basis of attracting

talent within Australia, aren't

you acknowledging then this

could affect the international

recruitment plans of some

companies? Well, Professor Fels

will take that into account.

But as I've said, the Hollywood

culture, if you like, I don't

think is as important frankly

as some people claim.. it needs

to be taken into account in

some areas, but as I

some areas, but as I say, there

is a great abundance of very,

very good quality Australian

executives. I'm sure there'd be

a lot of Australians out there

agreeing with you. Thanks very