PM shows no desire to lower super

Prime Minister Kevin Rudd has shown no desire to lower the current superannuation rates, despite a recommendation suggesting the move would put more money in workers' pockets and stimulate the economy.

In an open letter to Mr Rudd, eight prominent economists say that cutting the compulsory rate from nine per cent to six per cent, and requiring employers to pass on the extra money to their workers, the government would push cash into the economy without harming its budget.

When questioned about the recommendation by media in Melbourne on Saturday, Mr Rudd
said: "Australia's superannuation laws have been long established".
The economists, including former Treasury secretary Tony Cole, say the government
should also significantly increase its borrowing and take the opportunity to pursue
longer-term goals such as developing nation-building infrastructure and helping ward
off climate change.
Mr Rudd said there was no "single silver bullet solution" to the global economic
crisis and the government was doing all it could to support growth and jobs.
"Our attitude is very simple, there is a global financial crisis underway, it's
having a huge effect on the global economy and its impact will be felt by the
Australian economy," he said.
"This will be a tough year ahead, I have tried to level with the Australian people
about this," Mr Rudd said.
"'O9 will be very hard on employment and unemployment."