Matt Williams (Hindmarsh, Liberal Party) Share this | Hansard source

Let's just look at the independent bodies that have supported this initiative in terms of the governance of superannuation funds. The member for Kingsford Smith referred to the Financial Services Council. Let's see what they had to say about this:

Independent directors on trustee boards, appointed using a strong definition of independence, will ensure that the interests of consumers are put ahead of the interests of shareholders or a sponsoring organisation. As superannuation grows from $2 trillion today to $7 trillion by 2035, good governance will be imperative for protecting consumers from potential conflicts of interest that may arise on boards of superannuation funds.

That was from Sally Loane, the CEO of the Financial Services Council, in June this year.

I am sure the people in the gallery and the people on this side of the House and all Australians are interested in the strong rationale behind the changes that we make in this place. It is about good policy. What are we trying to achieve? What are the objectives? We know that, as we have said—and the member for Wannon outlined this quite well—we are looking at having the best people governing retirement savings. Getting the best people involved—that is the objective, that is the strong policy rationale, that is why this is being brought forward. Independent board members bring different skills and expertise, so they bring different values to the table.

Let's just have a look at some of the history of where this has come from in terms of recommendations. We have had a number of reviews over time. The Cooper review in 2010 by the previous government recommended that the act be amended so that equal representation no longer be mandatory. This was by the previous government, so they heard this loud and clear. I know that the member for Fraser, in a speech in 2011, referenced the Cooper review, so he was across this. He knew that this was a recommendation of the review. Then in 2014 the financial system inquiry report, the Murray report, concluded that the independent directors on all superannuation trustee boards promote good governance by bringing an independent, objective perspective to issues the boards consider.

I just want to go on to a few other independent recommendations or testimonials as to why we need these changes. We have heard from the member for Mitchell on Paul Howes, who you have listened to so attentively throughout your history—and if you want to have a career like Paul, then continue listening to what Paul says. David Murray, the chair of the financial system inquiry, says:

Independent directors are more likely to ask the right questions of where the interests of members lie …

That is all that we have been doing in this House: asking the right questions about why we are making these changes on good, sound policy.

Regarding the Self Managed Super Fund Association, Andrea Slattery, who I hope the member for Rankin has engaged if he is doing the right thing by consulting with industry bodies, is a fantastic CEO of the Self Managed Super Fund Association. What did she say in June 2015?

See this speech in context