Trevor Evans (Brisbane, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Financial Services. Will the minister update the House on action the government is taking to ensure that the interests of hardworking Australians are put ahead of the vested interests in the superannuation industry, including, for instance, the trade unions?

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

I thank the member for Brisbane for his question. The Turnbull government is introducing—

Opposition Members:

Opposition members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The minister will pause for a second. The members for Burt and Brand, and I'm sure Wakefield was in there—

Mr Champion interjecting—

Well, I tell you what, if I were wrong, I'd be very unlucky! Can I just say that it's never too late to be ejected under 94(a). The minister has the call.

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

The Turnbull government is introducing very comprehensive reforms to our compulsory superannuation system to protect members' interests and to make sure that their money is protected. On top of giving APRA, the regulator, powers to investigate and prevent fraud and misuse of members' money in super funds, the government is also ensuring that at least there will be some non-conflicted directors with the right skills and expertise to protect the growing retirement savings and to make sure that it's done solely in members' interests. The government's changes apply equally across the sector, whether it's to industry funds, whether it's to corporate funds or whether it's to retail funds.

Today it was revealed in The AustralianFinancial Review exactly why these reforms to superannuation fund directors are needed. It uncovered that, of the 166 so-called 'member' representatives of industry funds, 119—almost 72 per cent of them—were, in fact, appointed by trade unions. This is a remarkable figure when you consider that only 10.4 per cent of people who are working in the private sector actually think that trade union membership is worth something and is good value.

Now, it was also revealed that there are, in fact, directors of a number of funds who have a tenure of not 10 years, not 15 years, not 20 years and not 25 years, but even more than that. For example, in Media Super—the default fund for journalists—Gerard Noonan, a director of the industry fund newsletter The New Daily, has been on the board of Media Super for an extraordinary 26 years. But it gets worse. There is someone with an even longer tenure, someone who has had a sinecure with REST Super—the Retail Employees Superannuation Trust—for no less than 29 years. According to the REST website, he receives an annual director's fee of $161,000. That director is Joe de Bruyn, former president of the SDA, former member of Labor's national executive and a factional ally of none other than the Leader of the Opposition. This is the same SDA that failed its members when it cooked up a deal with the Leader of the Opposition's AWU to underpay 30,000 casual workers at Coles—a deal that was found to be illegal by the Fair Work Commission. When it comes to endorsing and authorising election payments to himself, when it comes to selling out the workers of Chiquita Mushrooms or Clean Event, the Leader of the Opposition looks after his own personal political interests and not the interests— (Time expired)

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.