Coalition reaffirms super governance changes
The Federal Opposition has reaffirmed its intention to alter the governance arrangements around superannuation funds to preclude union officials who are super fund trustees from acting other than in the best interests of fund members.
The Opposition's intentions were made clear to an event for not-for-profit planners organised, in part, by the Industry Super Network.
Representing the Coalition's views, the Liberal member for Bradfield, Paul Fletcher, pointed to the recent actions of building union officials with respect to construction industry investments by industry fund C-Bus and to the attitude of Transport Workers Union officials towards Qantas.
Fletcher warned that some of the actions of union officials amounted to an attempt by a union "to use the economic resources of a large superannuation fund over which it has substantial influence — including appointing three directors — to secure industrial or political outcomes".
He said this was why the Federal Opposition was supporting the Cooper Review recommendations with respect to superannuation governance, particularly with respect to independent directors, conflicts of interest and disclosure of remuneration.
Fletcher claimed the Federal Government's approach to superannuation was conspicuous for the issues it did not address.
"It does little to address some serious deficiencies in corporate governance of superannuation funds, and leaves significant recommendations from the Cooper Review unimplemented," he said.
"It is silent about the risk that, where a union is experiencing corporate governance problems, an associated superannuation fund could be affected."
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