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Democrats under
pressure to
delay legislation
The Australian Democrats came
under intense pressure in a senate
committee hearing yesterday to de-
lay the passage of superannuation
guarantee levy legislation.
Welfare and consumer groups at-
tacked the SGL and existing super-
annuation arrangements because
they said they allegedly disadvan-
taged women and part-time and low
income workers.
The Democrat spokeswoman on
finance, Cheryl Kernot, who repre-
sents her party on the senate com-
mittee, is fully aware these
community groups are part of the
Democrat support base and listened
closely to their submissions.
The Government needs the sup-
port of the Democrats in the Senate
to pass the legislation.
The Australian Council of Social
Service policy resource coordinator,
Julian Disney, told the committee
the injustice of the currently "un-
sound" superannuation system
would be compounded by a 9 or 12
per cent SGL.
Australian Federation of Consum-
er Organisations director Jane Elix
said there was anger and confusion
in the community over the Govern-
ment's failure to consult on the SGL.
"The concern, anger and confu-
sion in the community gives the Op-
position and the Australian
Democrats the mandate to halt the
SGL [and put] into place processes to
resolve the issue," Ms Elix said.
Mr Disney said the Government
could fruitfully place the Bills on
hold for six months while an
independent inquiry took evidence
on the levy from community groups
and superannuation experts.
Womens' Economic Think Tank
senior associate Eva Cox said the
SGL should be put to one side and
other options investigated as low-
income earners, and women workers
in particular, would not gain from
the levy, as they rarely worked for 40
years without a break.
The state and territory govern-
ments also called on the Govern-
ment yesterday to delay or withdraw
the SGL.
But the Prime Minister, Paul
Keating, rejected their pleas immedi-
ately, saying they had benefited from
wage restraint for years and now had
to pay the levy, which was a product
of the restraint.
State government officials told the
committee total states and territories
superannuation costs for 1992-93
would be $302 million when the SGL
was added. The total accruing cost of
superannuation, including the SGL,
would be $890 million in 2001.
The submission said the states'
budgets were "stretched to the limit"
and might have to consider reducing
public services to meet SGL costs.
Treasury's super policy
'negligent'. — Page 4.
$