PM, Swan gather with top end of town

A Sydney meeting, organised by the Australian Industry Group, will be attended by BHP Billiton, Deloitte, Leighton Holdings, News Ltd, Microsoft, IBM Australia, Xstrata, Ernst and Young and American Express.

The company representatives will be addressed by Mr Rudd, Treasurer Wayne Swan, and Australian Industry Group chief executive Heather Ridout before going into a private question-and-answer session.

While this week's $10.4billion Government economic rescue package will be a focus of the talks, Mr Rudd will be anxious to get information from the companies about the economic outlook.

As the Opposition toughened its attack on Mr Rudd over the package - which it has said it will support - the Government also had to defend the Prime Minister's plan to curb the pay of those in banks and other financial institutions rewarded for excessive risk-taking. Mr Rudd proposes that institutions that encourage such risk-taking should have to meet stronger prudential requirements.

Assistant Treasurer Chris Bowen said the problem had been "more of an issue overseas . but we need to be vigilant. We need to ensure there can't be a situation that arises where risky behaviour in Australia is rewarded through outrageous remuneration packages".

But Opposition Leader Malcolm Turnbull said executive remuneration was complex and something that was fundamentally the responsibility of shareholders. Drafting a change would be an "interesting challenge for the Prime Minister".

Mr Turnbull accused Mr Rudd of arrogance in not providing the information on which the economic package was based. He rejected claims by Labor that the Opposition was undermining the plan, and said Mr Rudd made "Paul Keating look open and transparent".

"The arrogance of this Prime Minister is breathtaking," Mr Turnbull said.

Mr Rudd said the Opposition was determined to engage in short-term partisan politics rather than participate in a long-term economic security strategy. "First of all, they have given bipartisan support . within 24 hours there is no longer bipartisan support."

He accused the Coalition of walking both sides of the street.