David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer, Senator Sinodinos. Can the minister outline to the Senate the importance for Australians of transparent, competitive and well-governed superannuation schemes?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank the honourable senator for his question. He has demonstrated expertise in banking, finance and superannuation and it is a well-informed question. I can inform the Senate that along with, I believe, almost all members of this chamber I believe in the importance of a transparent, competitive, well-governed superannuation system. To that end I released a discussion paper last week which canvassed issues around all of those desirable attributes.

Let me begin with the first, which was better regulation of superannuation. By that I mean where there is a need to regulate superannuation we will institute measures which reduce the costs of compliance—

Opposition Senators:

Opposition senators interjecting—

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

Order! When there is silence on my left we will proceed.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

They are modest men!

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

Order, Senator Cameron!

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

Importantly, that paper will also canvass reforms to the governance of superannuation funds. There are already moves among both the corporate funds and the industry super funds to improve their governance. What we are doing is setting out a framework, consistent with our election commitments, which will canvass the options of going closer to corporate-style governance or adopting the APRA style of governance, which involves having independent directors and an independent chairman.

The reason I raise this—and the reason for the sensitivity on the other side, I believe—is there is some fear that this is just having a go at one particular sector of superannuation. My point is this: no-one in the superannuation industry who has transparent, accountable governance has anything to fear from these measures. Indeed, it is precisely because we are encouraging a debate around this that we can get the best possible governance.

We will also be seeking to promote transparency in superannuation by completing some measures that were started by the previous government around greater transparency on product choice, dashboards and portfolio holdings. We will also address the issue of default super. We will make sure that the industrial relations system is open and any product which meets certain basic APRA criteria— (Time expired)

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Have the Nats said no? If the Nats said no—

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

Order! Senator Cameron, I remind you that calling across the chamber is disorderly. Constantly doing it is completely disorderly.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the minister aware that the hard-earned superannuation savings of Australian workers are being used to bankroll an online newspaper? If so, what is the minister's response?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I have heard of this online newspaper to be funded by three industry superannuation funds at $2 million each—an online news service allegedly taking material from the ABC and the Fairfax media; I have not heard of The Australian or TheSpectator being involved.

My point is: the superannuation funds have a duty to make sure that everything they do is in the interest of maximising returns for their members. The Australian prudential regulator has spoken to the superannuation funds involved about this matter and is keeping it under observation. We do not want a situation where members' funds are dissipated on political online news services and not being used for maximising returns. The funds involved claim that the money is coming out of their marketing budget but, as all members opposite know, money is fungible—the money you spend over here is not available to invest over there and generate a return for members. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Can the minister tell the Senate why it is important to protect the superannuation savings of Australian workers?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

It is important to protect those savings because there are $1.6 trillion of assets in superannuation and they will grow over time as the superannuation guarantee continues to increase, as it will under the bipartisan commitment to it. It is important that we make sure that those funds are invested as appropriately as possible, which is why it is important that there is transparency, there is choice and there is competition in the super fund market. The measures we are taking, which are election commitments, will help to discharge those responsibilities. I say to those opposite: the best thing that can happen to the industry funds and to the unions in this country is that they embrace competition, because competition causes people to thrive.