Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Financial Services and Superannuation, Senator Sherry. I refer the minister to the Labor Party’s pre-election commitment to:

… request the Productivity Commission to design a process for the selection and ongoing review of the superannuation funds to be included in modern awards or enterprise agreements as default funds.

Given that, in his otherwise comprehensive statement on superannuation made in parliament earlier this week, Minister Shorten faithfully regurgitated all other superannuation election promises developed by his predecessor—except for this one—has this unequivocal pre-election commitment become Labor’s latest broken promise?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

Thank you for the question on superannuation. It is always good to get a question on superannuation, albeit in my representational capacity on this occasion. The senator has asked about Minister Shorten’s speech earlier in the week in the House of Representatives, and of course the senator has referred to a range of commitments that this Labor government has given, and has long given, in respect of superannuation.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Senator Cormann interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

I think, if you look at the question, the senator has referred to the statement by Mr Shorten and the range of initiatives that this Labor government has proudly announced in respect of superannuation. This is the government of superannuation, as we know, looking back at our record over 20 years.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Senator Cormann interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

I would not call the superannuation guarantee and $1.2 trillion in saving a failure. I would not call the fact that the Labor government has increased the retirement savings of all Australians a failure.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I asked the minister a very specific question on whether or not the pre-election commitment to design a process through the Productivity Commission for the selection and ongoing review of superannuation funds to be included in modern awards as default funds is going to be another broken promise. I would ask you to instruct the minister to be directly relevant to the question.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order, but I do draw to the attention of the chamber the fact that, during the response to the question, there was an interjection by you with another question, which the minister responded to. That makes it difficult for me. If there is a question that you would like answered and you stick to that one question, it gives me a chance to rule. I did think that the minister, in fairness to him, was coming to the answer. Minister, you have got 46 seconds remaining. I draw your attention to the question and you have heard the ruling on the point of order.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

Thank you very much for that ruling, Mr President. As I indicated, the question did refer to the speech by my colleague Minister Shorten earlier in the week which outlined—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

I asked about default super funds and you know it.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

I think that if the senator, who is interjecting again, looks at his question, he will see that he referred to Mr Shorten’s speech. Of course, the key aspects of that speech referred to the Labor government’s intention to increase the superannuation guarantee from nine to 12 per cent, which will benefit 8.4 million Australians—and which we know the Liberal Party opposite will oppose, like they have always opposed superannuation in this country—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

On the point of order: nothing in my question referred to the super guarantee. My question was whether the government will fulfil its commitment to refer to the Productivity Commission a process for the selection of default funds under modern awards. The minister has not, in any way, shape or form, addressed that question whatsoever, and I would ask you to instruct the minister to be directly relevant to the question.

John Hogg (President) Share this | Link to this | Hansard source

As I have said, I cannot instruct the minister how to answer the question. I did draw the minister’s attention to the question at the time of the last point of order. I do so again, and I ask the minister to resume his answer, with five seconds remaining.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

Minister Shorten’s speech also referred to the fact that we will be implementing a simple, low-fee— (Time expired)

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

The answer clearly was yes. Mr President, I ask a supplementary question. Given Labor wanted the Productivity Commission to design a process that was ‘based on objective criteria and evidence so the selection of eligible default funds is transparent and competitive’, does the government concede that selection of default funds is not transparent and competitive now?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

Whilst I am not the minister but the minister representing, I do recall that in terms of default funds—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

It was your policy. It was a good policy.

John Hogg (President) Share this | Link to this | Hansard source

Senator Cormann, it makes it very difficult when you ask a question of the minister and then interject on your own question.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

I think I was attempting to directly respond to the senator’s question about default funds. As I was saying, I do recall reference in the completed Cooper review, which examined the operation structure of our superannuation system—and a very fine report I might say in passing—to the issue of default funds. I recall an examination of the current parameters for establishing default funds, which, as Senator Cormann correctly—at least on this occasion—observed are established, primarily, not exclusively, through the industrial award system— (Time expired)

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that the government made this commitment to refer the selection of default funds to the Productivity Commission on 1 August, when will the government have the courage to action this commitment so that employees across Australia can benefit from competition between default superannuation funds under the modern awards?

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

You don’t give a damn about workers, you hypocrites!

John Hogg (President) Share this | Link to this | Hansard source

Senator Sterle, you will need to withdraw that.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

I withdraw that comment.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

I do not think I have had this many interruptions about superannuation for many years. Let us get back to the issue of default funds, the Productivity Commission and the Cooper review. As I was saying, I am certainly aware of the Cooper review recommendations—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

You made a commitment after Cooper.

John Hogg (President) Share this | Link to this | Hansard source

Senator Sherry, ignore the interjections and continue with your remarks. People are entitled to two supplementary questions. This is the second supplementary question.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting on Deregulation) Share this | Link to this | Hansard source

I welcome all this interest, but I think six interjections and three points of order is setting a new standard. And I am genuinely attempting to provide information to Senator Cormann about superannuation—I am just so keen to do it. But to come back to the point that the senator makes in that last supplementary question: he contends an issue of competition choice. I think what is important is effective competition and the reduction of fees and charges that would result from effective competition. I know that as a consequence of the referred-to ‘choice of fund regime’, fees and charges have not— (Time expired)