Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

I rise on the same subject and wish to respond to the accusation, effectively, made by Senator Sherry against me in particular and to the inference, if not the direct statement, that in some way I misled the Senate on the position of Telstra employees who are at this stage still in the CSS. As I said in my answer, we are talking about some four per cent of the Telstra workforce who are still members of the CSS.

Senator Sherry referred to an answer that I gave in response to a question from Senator Marshall on 7 September 2005. Senator Marshall asked me specifically about a payment which the government had made of $3.125 billion to Telstra Super to absolve the Commonwealth government of its liabilities and to ensure that those liabilities could then be met in full by Telstra Super. That was a very good arrangement for taxpayers and for the company. In fact, it was supported by the Labor Party at the time. Senator Marshall asked me further questions about what that payment might mean in the event of any further selldown of Telstra shares.

In my answer on 7 September, I said that I would be happy to come back to Senator Marshall to confirm the arrangements. What Senator Sherry has quite mischievously ignored in his statements today is the fact that, on 8 September, the very next day, I had incorporated in Hansard a further answer to Senator Marshall’s question on this subject. I wish to refer to that incorporated answer in the Hansard because Senator Sherry has quite mischievously ignored it in accusing me of misleading the Senate. On 8 September 2005, I said:

In March 2004, the Australian Government paid the Telstra Superannuation Scheme $3.125 billion in return for extinguishing the Australian Government’s liabilities to the Scheme.

I emphasise that this payment is to the Telstra Superannuation Scheme, not to Telstra itself.

Once the Australian Government ceases to hold majority ownership of Telstra, superannuation arrangements for Telstra employees will be a matter for Telstra. Telstra has an obligation, like all employers, to make contributions in respect of its employees.

Issues relating to membership of the Telstra Superannuation Scheme are also a matter for Telstra.

For those Telstra employees who are members of the Commonwealth Superannuation Scheme, membership will cease once the Australian Government ceases to hold majority ownership of Telstra, but the Government will continue to be responsible for meeting the obligations, going forward, in respect of the past service of those employees.

This is consistent with the agreement between the Government and Telstra referred to by Senator Marshall in his question yesterday.

It is also consistent with long standing Government policy, that contributory membership of the Commonwealth Superannuation Scheme ceases in circumstances where the Government has ceased to have control of a business unit, such as QANTAS.

On 8 September 2005—13 months ago—I made it abundantly clear in this place what the circumstances would be with respect to those Telstra employees in the CSS upon the cessation of the government’s majority ownership of this company. For 13 months, Telstra employees in the CSS have been under no doubt as to exactly what the situation would be should the government diminish its shareholding in this company and no longer be the majority owner.

The statement was set out clearly. I am disappointed that, in his attack on me, Senator Sherry did not inform the Senate of what I said on the very next day, 8 September 2005, on this matter. He is mischievously misinforming Telstra employees in the CSS by suggesting that I said anything other than what was made clear on 8 September—that is, we would honour those obligations up to the point where the existing accrued entitlements of those CSS employees would be honoured in full. However, their membership of the CSS will cease upon the government no longer having a majority shareholding. So I reject absolutely what is at the least a very mischievous remark made by Senator Sherry, and I hope that he will withdraw it this afternoon.