Stephen Parry (Tasmania, Liberal Party) Share this | Hansard source

I also rise to take note of the answers given by Senator Minchin in question time today. I will respond to Senator Sherry’s remarks of a few moments ago. When the Commonwealth Superannuation Scheme ceased, it ceased for the employees of Qantas in 1993 and for the employees of the Commonwealth Serum Laboratories in 1994. It ceased upon the sale of the Commonwealth Funds Management to the Commonwealth Bank in 1996 and the Australian Defence Industries Ltd in 1999. So this is not an unusual step; this is very consistent with previous government policy—not just this government’s policy but the former Labor government’s policy.

The employees of Telstra will have the option of moving into other superannuation schemes. Once the sale has occurred and the government is no longer the majority shareholder, those employees will cease to be members of the Commonwealth Superannuation Scheme. This is not a new concept. This concept was introduced when the legislation was passed last year authorising the further sale of Telstra. It is certainly consistent with the longstanding government policy that contributory membership of the Commonwealth Superannuation Scheme should cease when the government ceases to control the business. It makes absolute sense that, when the government has no control over an entity, it should not be running that scheme for those former employees. It is not fair on the taxpayers in that sense that they fund superannuation entitlements to employees who no longer belong to the Commonwealth in respect of their employment.

Senator Sherry mentioned a figure of 1,800, but he did not mention it in context—that there are 1,788 employees who are still members of the Commonwealth Superannuation Scheme out of a total workforce of 49,443. The figure of 1,788 represents less than four per cent of the total Telstra workforce—so four per cent or less are potentially affected by this. Those members will now have the option to either join over 80,000 current and former Telstra employees in the Telstra super scheme or to join another eligible superannuation fund. This is not uncommon in this type of transaction.

The existing benefits of Telstra employees who are still in the Commonwealth Superannuation Scheme will be protected. Their accrued benefits are guaranteed under legislation and will be paid in full by this government. The future superannuation arrangements that will apply to Telstra employees who will exit the Commonwealth Superannuation Scheme after the sale of Telstra will be a matter for Telstra administration, post sale. Like all employers, Telstra has an obligation to make superannuation contributions in respect of its employees.

I understand that Telstra management recently wrote to employees explaining the arrangements. A predominant issue in Senator Sherry’s question was this: why not just let Telstra employees remain in the Commonwealth Superannuation Scheme? The reason is that it would be inappropriate for taxpayers to fund the superannuation entitlements of employees of entities not controlled by the government. That is a fairness and equity issue that we need to address for all employees and all taxpayers.

It is important to acknowledge the reasons why we are selling Telstra, and this is just one issue. The government has gone to the past four elections promising to sell its Telstra shares, and it is now delivering on a longstanding promise and commitment. This situation is not unusual; it is not something that has not been declared before. The public is fully aware of the government’s commitment to sell Telstra. Legislation was passed last year allowing the process to move forward. The timing is now upon us and the process is now moving forward in a smooth and logical progression. We must bear in mind that this is one of the largest organisations in the country. In the process of selling such an organisation, there will be issues that arise from time to time that spark emotion and debate; however, the government is committed to furthering this cause with minimal fuss and minimal disruption and taking into account the entitlements and benefits of employees.