It must be an election year. The Federal Government is attacking the Labor Party for advocating a $130 million cut in the Australian Securities and Investments Commission’s (ASIC) budget.

Parliamentary Secretary to the Treasurer Chris Pearce says it is remarkable that Labor would endorse such a contradictory approach to fiscal policy. “Labor’s policy is to maintain our corporate watchdog capabilities, but now [Opposition leader] Kevin Rudd endorses a crippling $130 million reduction to ASIC’s budget,” he said. “Mr Rudd has been caught out misunderstanding fiscal matters yet again.”

The Federal Government has increased funding for ASIC from $128.1 million in 1995/96 to a budgeted $265.2 million for 2006/07.

It’s a hefty budget, but ASIC is well worth it. The regulator is a cash cow for the Federal Government, raising $543 million in fees. That’s a tidy $277.8 profit for consolidated revenue.