Page 2667 - Week 08 - Thursday, 24 August 2006
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Superannuation receipts cannot be guaranteed. It is like betting on the horses. It is the way in which the stock market performs. We’ve got away with it over the last 10 years but we can’t continue to expect to get away with it.
That is absolute rubbish! If that is the way the Treasurer believes the superannuation fund is managed, he should resign. All the staff in the superannuation fund ought to be appalled that they are being compared to a horse race. It is really not a joking matter, given that 18,500 public servants and those that have gone before them depend on this superannuation for their income. In case the Treasurer does not know, we have a properly developed asset allocation strategy that provides regular and sound income from dividends and regular and sound income from interest.
In addition, there are issues about movements in the valuation of the underlying assets in the different classes. It caused some concern two or three years ago when we had the fall in the Australian stock market, although dividends and interest were, or should have been, largely maintained even during that period, and indeed have been the basis of the five surpluses of which the Treasurer is so proud. On the one hand he says it is a horse race; on the other hand he says that it is working in our favour. Obviously, he has not been briefed about the extensive governance framework of the superannuation unit that protects the asset. There is the Territory Superannuation Provision Protection Act. There are guidelines made under the act. There is the Finance and Investment Advisory Board. There is an asset consultant and an actuary. There is absolutely no basis for the Treasurer’s comments. They are grossly irresponsible.
Contained in the notes to the superannuation unit is an explanation of how the investments are to be made. The act provides for the investment of amounts in superannuation bank accounts and details where they can go. It does not say anything about Randwick, race No 3 on Saturday afternoon. It refers to having amounts on deposit with authorised deposit taking institutions in states, commonwealth or territory securities in any prescribed investment. To back that up is the Superannuation Management Guidelines 2002. Perhaps it is because Ted Quinlan signed them that the Treasurer has not actually read them. The guidelines deal with the ratings of units and defines prescribed investments. They even deal with how to use derivatives. There is clearly a framework, unless you are using the Punter’s Pal or something to run your superannuation accounts.
The Treasurer just does not understand how this works. If he does not understand how it works, then he should not be the Treasurer. Clearly, Treasurer, you have got some reading to do. I suggest you read your own legislation and your own guidelines. If you are not happy with the guidelines that Ted Quinlan put in place, because I think he actually did understand this whole area, perhaps you should put your own in place. It would be interesting to see if what you come up with is an improvement.
MR MULCAHY (Molonglo) (4.56): There has been much debate recently on superannuation. Indeed, the opposition recently and reluctantly acknowledged that the government had little choice but to make its decision to reduce superannuation. The Chief Minister may well have been correct when he said the territory simply could not afford to continue to contribute 15.4 per cent to superannuation. Of course, what he
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