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Australian PM spells out global financial reform plans

Australian premier Kevin Rudd Editing of this page by unregistered or newly registered users is currently disabled due to vandalism.  Friday spelled out plans for global financial regulatory reform Regulatory Reform concerns improvements to the quality of government regulation.

At the international level, the "OECD Regulatory Reform Programme is aimed at helping governments improve regulatory quality -- that is, reforming regulations that raise unnecessary obstacles to
, including curbs on executive pay, that he will present to a summit of major economies next month.

He told industry leaders at a meeting on the world economic crisis that he would put forward the proposals to fellow members of the G20 group of rich and emerging nations within 24 hours.

As well as plans to deter excessive executive pay packages that encourage risk, he also calls for greater disclosure requirements for banks and an overhaul of the supervision of the global financial system.

"The IMF IMF

See: International Monetary Fund


IMF

See International Monetary Fund (IMF).
 (International Monetary Fund) must be given a strengthened mandate for prudential analysis," he said.

Rudd said he would also call for changes to the existing rules on capital adequacy for financial institutions.

"Regulators should set higher capital requirements Capital requirements

Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.
 when financial firms have had executive remuneration packages that reward short-term return for excessive risk-taking," he said.

"I will be corresponding with other G20 countries around the world over the coming 24 hours in support of these points," Rudd said.

The centre-left Labor Party leader on Thursday named greed and fear The of this article or section may be compromised by "weasel words".
You can help Wikipedia by removing weasel words.
 as the "twin evils" at the root of the financial sector crisis, which he called a "comprehensive collapse of extreme capitalism."

"Obscene failures in corporate governance Corporate Governance

The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law.
 which rewarded greed without any regard to the integrity of the financial system" were one of the factors behind the collapse, Rudd said.

On Tuesday he announced a 10.4 billion dollar (7.25 billion US) stimulus package designed to help pensioners, families and first home buyers and boost economic activity.

"Together we are going to come through this, and we are going to come through this thing in good shape," he told some 150 business representatives at a meeting hosted by the Australian Industry Group The Australian Industry Group (Ai Group) is an employers' organization, which represents 10,000 east coast Australian employers of various sizes, covering a wide range of industries including manufacturing, construction, automotive, telecommunications, IT & call centres, transport, .

He said China, whose demand for raw materials has fuelled Australia's economy for more than a decade, was important to future growth and so far showed no sign of withdrawing its investment in the global economy.

"China is a critical part of our future growth equation," he said. "I am confident China will continue to act as a strong growth buffer for our region."

Australian Industry Group chief executive Heather Ridout Heather Ridout is the current Chief Executive of the Australian Industry Group, and has previously held the positions of Deputy Chief Executive and Executive Director - Public Policy and Communications.  said conditions within the business sector ranged from "quite healthy" in mining and engineering to "turmoil" in other sectors.
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Author:AFP
Publication:AFP Global Edition
Date:Oct 17, 2008
Words:388
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