Rod Kemp (Victoria, Liberal Party, Minister for the Arts and Sport) Share this | Hansard source

We have listened very carefully to Senator Evans’s comments. In many ways they are on-balance decisions. The government’s view is that the maximum term of two years makes directors more accountable to members and reduces the chance of a corporation becoming a closed shop controlled by one particular group. But it is true that some stable corporations with well-established governance practices may benefit from longer term directors. We agree with Senator Evans on that point. As has been noted by Senator Evans, the government has responded to this feedback by making the two-year term exemptible. We think that deals with the problem. I do not think there is a big difference between us, but the government has looked carefully at this issue and will be opposing the amendment moved by Senator Evans.