It is a pleasure to be here tonight at your annual summit.
Id like particularly like to thank Gail and her team at Westpac for supporting this event in Australia and hosting you in Sydney.
Westpac stands tall in corporate Australia for its work on improving gender equality.
The rubyconnect website, scholarships and workshops targeted at the progression of businesswomen and public advocacy exemplify the contribution our companies can make to empower women.
The On Target program that supports and encourages women within Westpac to make their mark and help them achieve their goals, shows the value in companies leading by example.
Id also like to add my support to the work of the Global Banking Alliance for Women and the work you do internationally, and particularly in our region.
Achieving the objectives of the third Millennium Development Goal that of empowering women and gender equality requires economic empowerment.
And by connecting women with the economic tools of capital, credit and financial services, the Alliance is contributing to halting poverty and disenfranchisement and to improving the lives of thousands of women around the world.
Because the barriers to equality are real.
And it is only through the concerted efforts of organisations like the Alliance, and its member companies, many represented here tonight, that we see results.
Tonight Id like to outline some thoughts on gender equality and empowering women, including the role I see for Government.
Whether in developing or developed countries, increasing the economic participation of women remains an ongoing challenge.
We know that empowering women benefits both the woman and her community The individual and the collective.
But achieving full economic independence for women is yet to be achieved, in the developing world, and the developed.
And tonight Id like to talk about some ways of empowering women from three different perspectives the international development context, the participation challenge in Australia, and improving equality in the workplace, including boardrooms.
Economic independence
Central to gender equality is economic empowerment ensuring women control the financial means to make their own choices.
With economic empowerment comes choice, and with choice comes freedom.
Yet women remain to varying degrees lacking these means.
Across the world, many women remain partial economic citizens.
Economic involvement is often not on their own terms.
It is often constrained by implicit and explicit barriers and social norms, many of which persist long after formal equality has been legislated.
We know that women, as individuals, can be held back by these barriers.
But it is equally as important to understand that gender inequality specifically economic inequality holds back the collective:
- The family unit.
- The community.
- The society.
The impetus of the present is also the imperative of the future.
Our task is to enable the next generation of women to develop, grow and live in a society that values them more for their mind and their ideas, for their business acumen and strategic decisions rather than simply their gender.
This is why we must continue to work towards equality.
And our responses need to fit to the task.
In developing countries, there is so much to be done.
The alleviation of poverty.
Developing safe and sustainable supplies of food and water.
Improving public health services.
And so much more.
As nations develop, we must also enable women to fully participate in that development.
We need to provide the financial and economic tools to allow women to not only pursue individual development but to contribute to the development of entire communities and societies.
This requires educational opportunities and the institutional settings that see women enter the market place on equal footing with their male counterparts.
It needs to be supported through the provision of capital and finance to women to facilitate entry into the world of commerce on their own terms.
In developed countries, the tasks are very different.
We need to continue to support women, but also remove the disincentives to paid work, and make sure that no position however senior is beyond the reach of any woman.
All of us here tonight occupy positions where we have the ability to effect change. And we shouldnt shy away from the challenge.
In the lives of so many women, the barriers between reality and aspiration remain great.
Our task is to lessen them.
For women today.
And for our daughters tomorrow.
Equality and development
Empowering women is undeniably an economic imperative.
This is not to overshadow the moral imperative.
Equality is an end in itself.
A just society requires an end to all forms of discrimination.
But the economic imperative is pressing.
The benefits of economic enfranchisement are just as real for developing economies, and advanced alike.
The World Development Report on Gender Equality and Development, released last month by the World Bank, provides further evidence to the case for gender equality.
Its message is simple.
Gender equality is smart economics: it can enhance economic efficiency and improve other developmental outcomes.
The report goes on to note that when womens labour is underused or misallocated ... economic losses are the result.
Furthermore, eliminating the barriers that prevent women from working in certain sectors has a significant positive economic benefit through reducing the productivity gap between women and men, and increasing the output per worker.
Underpinning economic involvement is education, something we know is especially significant for girls and women.
As the United Nations Population Fund has reported, the educational achievements of women can have ripple effects within the family and across generations.
Where women benefit, the community benefits.
But overcoming these barriers requires help.
For developing economies it requires advanced economy governments, businesses and NGOs to come together to provide the support needed.
The work of the Alliance is vital to this collective effort.
The work of Standard Charter in Asia in enhancing the financial literacy and business planning of women small business owners is an example of the advances that can be achieved.
Our government is similarly committed to accelerating gender equality in developing economies.
While we have committed to increasing our spending on international aid to 0.5 per cent of Gross National Income, we know that the quantum isnt everything.
In July the Government responded to an independent review of our aid effectiveness by outlining 10 development objectives.
Empowering women to participate in the economy was a key theme in our goal of promoting opportunity for all.
Opening up opportunities leads to economic empowerment.
And economic empowerment leads to better development outcomes for women and their societies and communities.
As increasing numbers of women operate in the economic sphere on an equal footing with male members of their communities, the benefits multiply.
Increasing participation at home
In Australia our different stage of development throws up a different set of imperatives.
The changes that will shape our economy for the next generation have particular implications for women's economic participation.
We are living through a tectonic shift in the global economy, as economic power gravitates from West to East.
We will see the Asian middle class become more numerous than the rest of the world combined.
On our geographical doorstep, such a change will have profound implications for our nation.
Against this backdrop, we will also be experiencing the impact of an ageing of the population.
These circumstances make participation and productivity growth policy priorities. Lifting our productivity over the coming years and decades will be a crucial driver of standards of living.
This challenge is compounded by increased competition for skilled labour, and the current low levels of unemployment.
In the longer term, the challenges of an ageing population will place a heavier burden on taxpayers as the paid workforce shrinks compared to those in retirement.
We know that even in an advanced economy, we need to provide support and incentives to overcome womens entry into the workforce.
We also need to work to remove the disincentives to workforce participation. Workforce participation of women with children is low compared to other OECD countries.
In 2007, less than 50 per cent of Australian women with their youngest child between two to five years old were in the workforce.
This compares with nearly 60 per cent in the UK and over 80 percent in Sweden.
Getting more women in to the workforce, and working towards seeing representation reflect capabilities is important for women.
It is also an economic imperative in an economy in need of skilled labour.
This is why in the 2011-12 Budget we introduced a number of participation measures, including changes to the Dependent Spouse Tax Offset, to remove disincentives to participation in the workforce, especially women.
Our intention to raise the tax free threshold to $21,000, announced by the Treasurer at the conclusion of last weeks tax forum, similarly encourages participation.
These measures will benefit the Australian economy and our society, but they will also empower women.
From employment, comes a sense of purpose and fulfilment.
It builds independence and opens avenues and decisions that economic dependence may not reveal.
It also allows women to accumulate economic assets and build strong financial positions.
But gaps remain.
For example, in Australia despite nearly two decades of compulsory superannuation the gap between male and female retirement incomes is substantial.
The Association of Superannuation Funds of Australia estimates that female superannuation balances are less 60 per cent of males, with average payouts broadly of the same proportion.
Of even greater concern is that over 50 per cent of women are retiring with no superannuation at all.
With Australians retirements lasting up to a third of their lives, these imbalances serve to reduce womens independence later in life, reducing their choices and economic security.
The Governments participation measures will go some way to attending to this imbalance.
So too will the proposed increase in the superannuation guarantee from 9 per cent to 12 per cent.
Through increasing womens economic holdings, though building their own financial worth, we are empowering them to be independent and to make their own choices.
Equality in the workplace
Economic enfranchisement requires all positions to be equally available to both men and women on the basis of merit and capacity.
In Australia, despite many great strides being taken over the past years, this challenge remains.
A quick look at the facts is revealing.
On average, women working full-time earn 17 per cent less than men working full-time.
Female graduates earn $2,000 per annum less than male graduates on entering the workforce.
Our Government led by Minister Kate Ellis is currently strengthening the role of the Equal Opportunity for Women in the Workplace Agency, including ensuring that businesses are reporting on the outcomes for women and men in their workplace.
The need for reform is no more evident than in the boardrooms of corporate Australia where currently only 13 per cent of board positions are held by females.
72 ASX 200 companies do not have a single woman on their board.
I am a strong supporter of the argument that diversity strengthens institutions, whether in our Parliament or our companies.
And the facts back this up.
A McKinsey study found that boards with more women outperformed those with no female representation.
From the business perspective, much like the development perspective, it can be seen as simple economics.
So it is interesting to note the arguments need to be made at all.
But undoubtedly, the barriers exist.
In dealing with the range of barriers women face we need to provide the opportunity for them to be overcome.
This approach characterises the steps that the Australian business community has taken.
The ASX now recommends disclosing diversity outcomes.
The Australian Institute of Company Directors publish board diversity results in real time and established the Chairmens Mentoring Program.
A number of senior CEOs and board chairs are actively pursuing pro-women policies. Government too has a role to play.
I mentioned earlier that the statistics for our top 200 company boards.
The performance of corporate Australia is improving, but the results still speak for themselves.
Its one thing for Government to draw attention to the performance of the corporate sector but it also prompts some self assessment.
We are right to encourage better performance by others, but we cannot let our own performance go unscrutinised.
We cannot let poor performance remain unattended.
That is why tonight I am announcing reforms to the governance of the government business enterprises.
A key element of these reforms is requiring Board Chairs and responsible Ministers to focus on gender diversity when appointing board members.
This embeds the Governments commitment to gender equality in the guidelines that will govern the operations of GBEs.
Specifically, the Governments target of women holding 40 per cent of board positions will apply rigour and provide a measure of our success.
As Finance Minister I am joint shareholder to the GBEs including the likes of Australia Post, the National Broadband Network Company, Medibank Private and ASC.
This reform reflects my strong view, that afforded the opportunity, we will see women excel in the highest positions.
It is my view that the Government should lead, rather than follow on gender equality.
And as shareholder Minister with responsibility for increasing the value of the Commonwealths assets, I am keen to see board diversity progressed. I believe that diversity can lead to improved results.
Improving the performance of the boards that steer these large and complex companies should in turn improve their performance both their public services and their financial returns.
I am of the view that targets such as those included in the GBE guidelines released today are not an end in themselves rather they are there to shape behaviour. Ideally, they will be successful by eventually becoming redundant.
I look forward to the not too distant future when appointment to boards, whether they be government or corporate, are decided on the basis of ideas and vision, the strategic thinking and leadership of candidates, and not by gender.
I am optimistic that these changes are underway.
And that with concerted effort genuine reform is possible.
Closing Remarks
In closing, I want to bring our focus back to the personal. To the individual. Because this is actually what motivates us to make a difference.
We establish the policies and the programs, we provide the funding and support; because we imagine the change this can bring. An opportunity for a woman today. Possibility for a daughter tomorrow.
I think of the women in my family. My grandmother who had little formal education, who worked in a factory, as a cleaner, as a housekeeper. I wonder what she might have done if she had been born in a different time, in a different place.
In our own lives we all know how profoundly an opportunity can change the course of our lives.
So our job, whether government, or corporation, or international organisation; is to extend opportunity wherever we can.
ENDS
