Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Hansard source

Sometimes in this place the opposition twist what the government says and you let it go through to the keeper because that is their DNA. But in this case I cannot allow that to be so. I accept that the member for Bradfield was not here to hear my second reading speech so he may be unaware that I made it very clear that small funds are not automatically worse than big funds. Indeed, in response to the contribution from the member for Dunkley, I made it very clear and I used the term 'small, well-performing funds'. We will be able to demonstrate that size is not impeding them. But despite the verballing by the opposition and the incorrect portrayal of what the government said in the speech, what I also know to be the case is that the Cooper review, which was an independent review—far more independent than the Liberal member for Bradfield—came to the conclusion that scale can be a factor in operating costs and economies of scale do exist. That is not to say that small funds should not be present in the market. I accept that small funds do provide some of the opportunities the member for Bradfield enunciated. What I do not accept is that we can simply dismiss this review and say, 'We're the people's house and we do not have to follow an independent review because it is being conducted.' That is true. That is very true.

What I also know to be the case is that it was put by members opposite that somehow the government is going in a different direction from what the industry believes. Clearly the Cooper review, which represents a lot of points of view in the industry, did have a distinct view which is in alignment with the government. Therefore, when we talk about the government acting on its own, that is not correct. People say that, if you have a requirement for trustees to periodically consider scale, that is somehow an assault on small funds. That is not correct. It is put to us that we say big funds are better than small funds. That is not what the government has said. What we do recognise is that we have an obligation to constantly and relentlessly seek the cheapest possible costs in the administration of superannuation and exert downward pressure on the fees and charges. I also note that, despite the reservations expressed by those opposite, I have not yet heard their position. Do they regard this requirement to consider scale as sufficiently important that, if they are unsuccessful in that amendment, they will turn their backs on the rest of the propositions on trustee governance? I sincerely hope not.

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