Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Hansard source

It is not actually something that we have dreamt up on this side of the House. In fact, there was a review that was undertaken under Labor's watch by Jeremy Cooper—a handpicked person from Labor for the job—who concluded that the governance standards for superannuation funds was not up to the mark. He said that there needed to be at least one-third of independent directors on these boards.

A second review conducted by David Murray said that there needed to be a majority of independent directors and an independent chair on these boards. It is so unacceptable to think that all of the problems that could occur within these funds can continue without there being appropriate oversight.

Let me just quote a couple of other people who think that this might be a good idea. Ken Henry, who was the former adviser to Paul Keating and former Treasury secretary, has been reported as saying it was time that industry funds accepted the need for new governance standards as advocated by the government. He said that the trade union movement should be proud of the system it created, but that the argument that, 'The system isn't broken, so why fix it?' was a bit like saying that a house that had not been torched should not have insurance. Paul Howes, the former Australian Workers' Union boss, has said:

It has been disappointing to see a knee-jerk reaction against the call for a more independent governance model … Equal representation has been a success but the evolution of the super industry is important and I can't see anything negative in having more independents on boards.

Those on that side of the House want to protect their union mates and union bosses in maintaining access to slush funds. We think it is completely and utterly inappropriate, and we will stand up for members, we will stand up for what is right for them and we will stand up for their interests.

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