Can I acknowledge today:
David Whitely, Chief Executive, Industry Super Network.
Ged Kearney, President of the ACTU.
Jeff Lawrence, Secretary of the ACTU.
The Honourable John Cain, Former Premier of Victoria.
I see Garry Weaven.
Garry doesn't need an introduction from me to a room like this - a giant in this industry - still working for the good guys too.
And I see so many other comrades and colleagues, allies and friends.
Friends, there are some rooms where you feel like a visitor, some like a friend, some where you feel like you're at home.
For any Labor Prime Minister, a room full of industry super funds people is a good room to be in.
Because universal superannuation is a great Labor achievement.
Universal super is a great Labor reform.
Some people in Australia had always had superannuation, it took Labor in Government to make it universal.
That is how we govern.
Informed by our values - and walking the reform road.
Determined to spread opportunity to all and determined to leave no one behind and determined to bring those values to concrete reality through visionary economic reform.
Every Australian is better off because of the decision to introduce universal superannuation.
It's built greater security for every Australian worker.
Lifting income in retirement.
And it's built a savings pool for the whole Australian economy.
So the world's seventeenth biggest economy - has the fourth biggest pool of managed funds on the globe.
The founders of universal superannuation saw the opportunities on the reform road - and measured them with hard headed analysis of the economic environment of their day.
We do the same now. And hard headed analysis is required.
Despite Australia's strong economy, we've all been given pause for thought - frankly, cause for concern - by recent developments in Europe and the United States.
There's concern at the kitchen table.
Australians are acutely aware of the escalation in volatility in global financial markets in recent months - and of the direct implications for each of them through their superannuation and through the investments in many portfolios.
I know many Australians are watching these developments anxiously. Some retired, some about to retire. To them I say:
In this period of uncertainty, the Government I lead will manage the economy in the interests of every Australian.
We will leave no one behind.
There's concern at the global economy's top table too.
The International Monetary Fund has warned that “the global economy has entered a dangerous new phase” and that downside risks are growing.
The Treasurer is in the United States this week, as you know.
There, he's told global policymakers that while some important steps have been taken, there remains much more to do.
That we cannot ignore the risk that a financial market dislocation in Europe could be transmitted through the global real economy via a big hit to confidence and a reduction in world demand and output.
That while the developing world continues to grow strongly, a loss of confidence could further impact on the already soft recoveries struggling to keep momentum in advanced economies.
That swift and credible action is required to restore confidence among global markets that governments particularly in Europe do have the capacity to resolve this situation.
And as the Treasurer and I have spoken in recent days, we have reflected that in a period where so many are uncertain, these messages must be sent very clearly.
In the world - and at home.
So the message to the world is clear:
There is a problem in Europe.
Solutions must now emerge to restore the confidence that markets need.
Governments must now act.
The message at home is clear as well:
Australia is playing a global role in encouraging a solution.
We are not immune, but we are strong - no country is better placed in this challenging economic period.
And we are strong for simple reasons.
First, we have a strong economy, with strong fundamentals.
And second, we have a plan for the future: a plan for growth, a plan for jobs.
The economic story is unfolding day by day - with implications for the economy as a whole and for a sector such as yours.
So some background to the current market situation is warranted - though many of you here are more than familiar with the course of recent events.
The recent volatility and uncertainty has hurt confidence and increased speculation that downside risks to world growth are beginning to crystallize.
Two key issues are fuelling the current uncertainty.
First, concerns about the very high levels of government debt in the Euro area and the US.
Second, fears that steps to reduce this debt will retard the patchy recovery of the global economy.
And this combination of circumstances is fuelling significant volatility in European financial markets.
Markets which have been concerned about the private sector's ability to repay debt - and which are now worried about whether overseas Governments can meet their debt obligations.
And the EU's measures to increase the flexibility of the European Financial Stability Facility, announced two months ago, remain un-ratified by 12 of Europe's 17 parliaments.
So in the Euro area, markets are now closely examining the potential for a default by one of the highly indebted EU economies - and they are weighing up the implications of such an event.
Despite the range of institutional reforms and fiscal adjustments that have been announced across the Euro area, sentiment has deteriorated.
While across the Atlantic markets are genuinely concerned about the strength of the United States' domestic recovery and the likelihood that successful interventions will kickstart jobs and income growth.
In this way, events in the northern hemisphere are conspiring to create a most uncertain outlook.
Australia is playing a global role in encouraging a solution.
Restoring sustainability to European public finances will take years - so while that long term repair begins, we need to see solutions emerging to restore the confidence that the markets need.
We are encouraged by the resolve among countries to arrive at a pragmatic solution.
There are signs they are putting the blame-game to one side and working to return confidence and stability to the global financial system.
And European leaders are discussing the need for further changes to institutional frameworks to better align fiscal and monetary policies, including stricter fiscal rules.
But the time for Governments to act is now.
We will continue to take a cooperative and practical approach with our international partners and friends.
Pressing hard for a coordinated global response.
This week in the US, the Treasurer has been doing just that.
At home, Australians understand we are not immune from these global developments.
The globally connected nature of financial markets means that volatility in international markets will be felt in Australia, including through returns to superannuation accounts.
But Australians should take some reassurance when these effects - and their impact on Australia - are seen in their proper perspective.
First, our fundamentals are strong.
Just last week, global ratings agency Standard & Poor's reaffirmed our top-tier AAA-credit rating on the basis of our fiscal strength, strong balance sheet and public policy stability.
We have very low debt - our net debt will peak at less than one-tenth of the major advanced economies.
We also have low unemployment because we acted decisively during the crisis - in fact the economy has created more than seven hundred thousand jobs since the Government came to office.
We've got some $430 billion of planned investment in our resources sector alone - which is stunning relative to our $1.4 trillion economy.
Second, the latest data from our regulatory authorities indicates our banks have negligible direct exposures to peripheral European sovereign debt.
And our advice is there is no Australian bank exposure to Greek public debt.
They also have low exposures to European banks and other borrowers that might be affected immediately by a major financial shock in Europe - below 2 per cent of total assets.
Our regulatory environment is the envy of the world.
Our banks survived the global financial crisis - they are now better-placed than they were before it.
Stronger capital buffers.
Stronger funding positions than 2007.
Increased holdings of liquid assets - up almost half since 2007.
Plus solid profits and relatively low levels of non-performing loans.
We've got a strong and stable banking system which came through the crisis in very good health after many years of tough supervision.
So as they consider the current financial environment Australians can be confident that our banks are well placed.
And third, as they examine their own superannuation, Australians should remember that it is a long-term investment.
Yes, super funds invest widely - including in global and local share markets, which have historically generated the greatest long-term returns to investors.
But the majority of super funds also diversify their investments over different asset classes to help minimise the impact of a volatile share market on their members' investments.
Share markets move in cycles and recover from downturns over time, as they did following the GFC.
I know this is no immediate comfort to Australians who've retired recently, or who are about to retire.
They need their savings now - and for them, a fall in returns is a cut in take home pay.
This is one reason the government is introducing MySuper.
Not only to ensure workers won't be paying unnecessary fees or charges that erode their retirement nest eggs.
MySuper providers will also be given the option of offering so called “lifecycle strategies” that automatically reduce the level of investment risk when the member reaches a certain age.
So, for example as theyreachretirement their cash allocation automatically increases.
A smart solution for the kind of complex economic situation which is playing out now.
Looking at the global economic situation, Australians can be reassured.
This country, this government, my economic team, have seen uncertain times and even global crisis before and we have demonstrated our resilience as well.
Australia is not immune from the world, but we are strong in the world.
I would not swap our economic position with that of any country.
We have a flexible economy.
We have a strong mix of trading partners.
We have rich resources and their prices are at all-time highs.
We have talented, hard-working, innovative people.
And we have a plan for the future: a plan for growth, a plan for jobs.
Friends, we have a plan for the future of super as well.
Because the future of super is the future of every Australian.
When the aged pension was introduced, the average lifespan was less than the pension age.
Today, living to eighty is the norm - a great thing.
And one British scientist, Dr Aubrey De Grey, has ventured to say that the person who will live to 150 has already been born.
Perhaps true, perhaps not.
But we are certainly living longer.
And while our working lives are becoming shorter than our non-working lives - the choices we hope for and the security we seek in retirement are only growing.
Financial experts generally believe the average worker will need between 60 and 70 per cent of pre-retirement income to live comfortably.
Nine per cent super is simply not enough to get there, especially for women, who have breaks in their career.
This is why the Government I lead will lift compulsory superannuation contributions from 9 to 12 per cent.
Delivered in a manageable way - rolled out over the next eight years - but wewill get this thing done.
But just increasing super from 9 to 12 isn't enough.
It's not enough for super to be adequate - it must be secure.
As a lawyer I acted for female clothingworkers to get their super paid, and it was a privilege to work with those women.
But employees shouldn't need to turn to lawyers or unions to secure basic entitlements like superannuation - it should be a normal part of every workplace.
That's why I'm proud of our Securing Super reforms.
Minister Shorten announced the Securing Super reforms last week, so every employee can see with his or her own eyes that super is being paid, in full and on time.
Employees will receive information on their payslips.
So they know when their superannuation will actually be paid into their accounts - and so they can monitor their contributions as well.
We're also ensuring that superannuation concessions flow to those who need them most.
It's of particular concern to me that whilst women live longer than men, their super balances are around 35 percent lower.
It is tragic and unnecessary that the financial independence women treasure so much in their working lives should be lost in their retirements.
Currently, around 2 million women get no tax benefit from super because the 15 per cent contribution tax is higher than their income tax rate.
That's why we are acting on the Henry Review recommendation that superannuation tax concessions be distributed more equitably. That starts from 1 July next year.
60 percent of the beneficiaries of this policy will be women.
It delivers $830 million in additional wealth every year to low income Australians - the very people who would otherwise struggle to set this money aside.
It's a Labor policy.
A policy I'm proud of - a policy with a very simple core:
To make sure no one is left behind.
I do see many friends in the room today, I see many leaders too.
Because when universal super was introduced, Labor introduced another innovation alongside it:
Industry super funds.
This wasn't just a vision of what could be done differently in this country - it was a vision of how it could be done differently as well.
Of how the savings of working Australians would not have to be handed to the big banks and old financial houses at the cost of high fees.
A vision of how those savings could be managed by the representatives of working Australians themselves.
A vision that we could spread opportunity to all, that we could leave no one behind and a vision that we could do it our way.
By sharing, by sticking together.
Today the industry super funds are multi-billion dollar entities.
With the confidence of our community through their good management, strong returns and low fees.
And in a global economic environment where many feel uncertain - in a period where many Australians are anxious about their retirement savings and their retirement income - industry super funds have a vital role to play.
Adequate retirement income for every working Australian.
Secure retirement savings for every working Australian.
Australians looking to retirement are looking to you.
A great responsibility - but a cause for great pride.
You should feel proud that under David Whiteley's leadership, you stood with us from the earliest days in our determination to secure a better retirement for all Australians.
You stood with us to get rid of the conflicts of interest and the excessive fees.
You stood with us to secure the iconic “opt-in” policy to bring fairness to financial advice.
You stood with us to bring simple, low fee super accounts to every worker who needs one.
You stood with us to distribute super tax concessions more fairly so that all Australians benefit.
You play a role in broader policy debates, on occasion at the vanguard of public policy debates.
Through ISN, you're working with us now on issues from the upcoming tax forum, to banking competition policy and nation building infrastructure.
So yes, universal super is a reform of which Labor Governments are rightly proud.
But universal super is a reform built by leaders in many places and at many levels.
Leaders in unions, leaders in industry, leaders in workplaces, leaders in financial institutions, leaders in ideas.
Many of you here today.
Still leading, still building the future for Australia, still doing it together.
Still spreading opportunity to all, still working to make sure no one is left behind.
Still working for the good guys.
Still walking the reform road.