Productivity Commission unconstrained on default superannuation funds
The Federal Opposition has welcomed a signal from the Productivity Commission that it will not allow itself to be constrained within narrow terms of reference in examination of default superannuation funds under modern awards.
The Opposition spokesman on financial services, Senator Mathias Cormann, said he welcomed a statement by the chairman of the Productivity Commission, Gary Banks, that the body would consider all relevant issues.
Asked about the Commission's approach to the inquiry, Banks pointed out that in many instances the scope of an inquiry was "partly conditioned by the emphasis that different participants will place on different issues that they think are important and relevant".
"So we don't feel constrained," he said.
Responding to Banks' words, Cormann said he would be encouraging all stakeholders to make detailed submissions with respect to the situation around default superannuation funds under modern awards.
"The current closed shop anti-competitive arrangements for the selection of default superannuation funds through Fair Work Australia are a national disgrace," he said.
"The current process is not transparent, not competitive and inappropriately favours union dominated industry super funds."
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