THE Federal Government is looking at the policy implications of the collapse of managed investment scheme giant Great Southern, Treasurer Wayne Swan says.
But he has ruled out any quick response to the collapse of Great Southern.
The company was structured to exploit agriculture tax breaks for investors and its collapse could lead to as much as 1.75 million hectares of agricultural and forestry land flooding the market..
Great Southern, which has 43,000 investors, owes up to four times as much as Timbercorp, the group's biggest rival, which collapsed late last month under a mountain of debt.
Speaking on ABC radio today, Mr Swan refused to comment on Great Southern's situation.
But he acknowledged there were "serious issues” relating to the impacts on investors, rural property markets and jobs now that two major MIS companies – Great Southern and Timbercorp – had collapsed.
"A sensible government will study what has occurred here, and assess the policy implications of that for the future," Mr Swan said on ABC radio.
"This is an issue that has arisen in recent times," he said.
"I will take the time to thoroughly assess the implications of it.
"That’s the sensible thing to do.
"And I shouldn’t be making any further public comment about it because we’ve got an administrator in there looking at the situation.”
