Fed: ACTU slams government response to HIH royal commission

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Fed: ACTU slams government response to HIH royal commission

MELBOURNE, April 17 AAP - The ACTU today criticised the federal government's "do little"

response to the HIH royal commission, saying it contrasted starkly with the crackdownannounced in the wake of another royal commission.

ACTU secretary Greg Combet accused the federal government of having one rule for thepinstripe suits and another for the blue overalls.

Mr Combet criticised the federal government for not announcing a crackdown on the topend of town in the wake of the HIH royal commission recommendations announced yesterday,as it had done after the recommendations of the royal commission into the building industrywere released.

"A $5.3 billion calamity involving breaches of trust, disgusting self-indulgent squanderingof people's money, insurance disasters for hundreds of thousands of businesses and people,corporate rorts and incompetence, and taxpayer bailouts and the key message from (Treasurer)Peter Costello is that the government is in the clear," he said in a statement.

"And it's not only the government in the clear - it looks as if mismanagement by executivesand directors is a sufficient defence against serious prosecution under our company lawsdespite $5.3 billion in losses."

Mr Combet said in contrast the $60 million building industry royal commission was conductedlike a court martial of workers and union officials.

"Many union members and officials are now facing prosecution and the loss of theirjobs for offences as minor as holding meetings at the wrong time or giving insufficientnotice of workplace visits," Mr Combet said.

"The government has been quick to announce that the building industry will also havea new super-powered regulator, investigator and enforcer imposed on it, tailor-made tobust unions," he said.

"But out of HIH, despite a $5.3 billion corporate rip-off, the Howard government isproposing no significant changes to its hands-off approach to business regulation, justa shake-up of APRA's board."

Mr Combet said what was needed was tough new company laws, improved shareholder rights,tighter regulation of executive remuneration and vastly improved audit standards.

"Australians are entitled to see all of this as the same old double standards by agovernment looking after the top end of town," he said.

AAP bja/ce/ph/bwl

KEYWORD: HIH ACTU