Governance Institute slams Senate Committee recommendation to abolish CAMAC

The Senate Economics Committee’s decision to approve the government’s bill to abolish the Corporations and Markets Advisory Committee (CAMAC) in the face of overwhelming opposition from the business sector not only makes a mockery of public consultation, but will also weaken Australia’s corporations regime over time, says Governance Institute of Australia.

“The Senate Committee undertook to consult on this bill and the business community expected that its strongly held views would be taken on board. However, to everyone’s disappointment, the opposite has happened,” said Judith Fox, National Director, Policy of Governance Institute of Australia.

“The vast majority of the business and legal community is committed to saving CAMAC and to restoring all its functions. Over 90 per cent of submissions to the inquiry strongly supported the retention of CAMAC. Yet the Committee has chosen to ignore majority opinion and push ahead with an ill-conceived measure that will be highly detrimental to efficient corporate regulation. 

Governance Institute has long maintained that, as an expert, research-focused, consultative and independent body, CAMAC has made an exceptional contribution to the efficiency and ongoing improvement of our financial markets and corporations regime. 

“Abolishing CAMAC does the exact opposite of ‘cutting red tape’. The fact that the business community came out so strongly in favour of the body speaks for itself. 

“Getting rid of CAMAC will deliver a cost saving to the government of barely $1 million but at a far greater price to our financial markets. Without a body like CAMAC, Australia runs the risk of becoming hobbled by haphazard, politically-motivated and poorly designed corporate law reforms which could impede our financial markets, at great cost to our economy. This is not what cutting red tape is about,” Ms Fox concluded.

For further information contact Viv Hardy at CallidusPR on 0411 208 951 or Judith Fox at Governance Institute of Australia on 0408 667 246.

About Governance Institute of Australia

Governance Institute of Australia is the only independent professional association with a sole focus on the practice of governance. We provide the best education and support for practising chartered secretaries, governance advisers and risk managers to drive responsible performance in their organisations. 

MR/2015/6

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