Small business and superannuation (letter)by M. WelbyNews Weekly
, June 15, 2002
Colin Teese (NW
, June 1, 2002) neglects to mention the contribution being made to our economy by the present generation of self-funded retirees trapped in small business.
Politicians certainly don't want to know about retirees currently contributing their life savings in the form of shares to the maintenance of unprofitable small businesses in Australia.
Many are elderly and incapable of understanding their contribution, often living in relative poverty. Others, wishing to utilise their savings, are unable to do so because management refuses to allow them to withdraw their funds. Those in control are the only ones to whom these shares are of value.
If a ridiculously low offer to buy is made, the investor will likely have to accept that or nothing, and sign to silence. Thus the extent of the problem is hidden, and unscrupulous management are smirking all the way to the bank. ASIC has higher priorities than the isolated investor.
Successive governments cannot hope to sit on this golden nest-egg forever. As the hidden costs of such injustices to the individual - e.g., family breakdown, depression, asset-rich poverty, etc. - and the costs to our country of the perpetuation of inefficient enterprises become more generally known, investors will avoid small business and further deplete our economy.
It does not take many of these reluctant investors to lose say half-a-million dollars to add up to huge benefits to the economy!M. Wellby