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Legislative Assembly for the ACT: 1999 Week 1 Hansard (2 February) . . Page.. 32 ..

Mr Moore: By Mr Quinlan.

MR HUMPHRIES: By Mr Quinlan, who has been quick to say that people in this debate have been prone to exaggerate. I quote Mr Deeves, the Acting Australian Government Actuary:

I am of the view that it is appropriate for superannuation accounts to not understate the likely financial position of a fund. It follows that I regard the figures quoted in the ACT superannuation accounts as having been calculated using a reasonable basis for accounting purposes.

Mr Speaker, incidentally, as a small sideline to that, I am told that when the Actuary actually prepared the first draft of this letter the words "for accounting purposes" did not appear in that report. The words "for accounting purposes" were added after a draft of the letter was circulated to the committee itself and I presume to Mr Quinlan, as its chair. I understand - if I am wrong, he can correct me in the course of this debate - that it was his view and the view of his committee that those words should be added, apparently because it rather overenthusiastically appeared to endorse the ACT Government's accounting, after he in particular had gone to the media attacking that accounting, making it clear that the accounting, in his view, was totally unreliable as a basis for making a decision about superannuation. Mr Speaker, that tells us a lot about the accuracy of this report. The whole great thrust of this report is built around the assumption that the Government has exaggerated its figures. This comment from the Actuary makes it clear that it has not.

The second issue is the issue of the use of equity markets to invest superannuation funds in. Mr Speaker, the report, fairly obliquely, criticises the Government for having the temerity to consider investing, and to intend to invest, proceeds of a superannuation fund in the equity market. I think members should be clear about this. Yes, it would be the intention of the ACT Government to invest at least part of the funds from any sale in the same location as funds which are put aside for superannuation are already invested; namely, in a number of revenue-producing or interest-producing areas which produce a balanced and mixed portfolio. They include Australian equities, foreign equities, the property market, fixed interest accounts and cash.

Mr Speaker, the reason we would do so is that that is where historically and, in fact, as far as I am aware, universally, governments always invest their superannuation moneys, because it is sensible and prudent to mix up a portfolio among those different areas. I am surprised that someone like Mr Kaine, who has more familiarity with this area than perhaps others on that committee, did not understand or pick up that point. There is nothing unusual about investing in equities. It is appropriate and, indeed, Mr Speaker, the point needs to be made that the Labor Party in government also invested superannuation trust moneys in equity funds. So we had this ridiculous media statement a few days ago from Mr Quinlan saying that the whole structure of superannuation would be threatened by the Government's investment in equities, when, in fact, his own government had done exactly the same thing and indeed would do so undoubtedly if it were in government again in the future. Where is the fairness in that comment?

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