Page 3005 - Week 07 - Wednesday, 30 June 2010
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Proposed expenditure agreed to.
Proposed expenditure—Part 1.10—Superannuation Provision Account—$140,534,000 (capital injection) and $5,272,000 (payments on behalf of the territory), totalling $145,806,000.
MR SMYTH (Brindabella) (10.17): The superannuation provision account is an important part of the budget, and I would certainly like to acknowledge the excellence and the management of most aspects of the superannuation provision account. The effect of the reduction in asset valuations is a consequence of the global financial and economic crisis. We have seen the concomitant increase in the value of liabilities that are outstanding.
If we recognise the issues in managing the superannuation provision account when such major external influences are being experienced, it is disappointing that the proportion of liabilities that are funded has been reduced to 52 per cent. At least this is an improvement from the recent low point of 45 per cent that was reached in the financial year 2008-09.
During the hearings we explored the strategies that might be followed to improve the funding of liabilities even further, and there will be a significant report on this matter in the 2012-13 financial year. At least by that time there should be a bigger restoration of the underlying asset values held in the SPA.
I also raised during the hearings the application of the accounting standard AASB101. I noted that this standard has been revised, such that there was no longer any need for entities to write off losses in unrealised values of assets against the revenue. I wonder whether the Treasurer could advise the Assembly whether this standard now applies to the SPA and, if so, how it is affecting the SPA.
In the hearing we also covered investment principles. These are important, not only to ensure that such areas as environmental and associated matters are taken into account but also to ensure that other relevant factors are also taken into account. And I raised the matter of organisations such as ESG Research Australia in that context. There is a recommendation in the dissenting report. This area was largely ignored in the main report. It is particularly important that we do get the research right. If we are going to take in environmental sustainability and governance factors and if there are organisations that we can join and be part of, then I think it is appropriate that we do. I look forward to the advice from the Treasurer as to whether or not that will be followed up by the government in this case.
MS HUNTER (Ginninderra—Parliamentary Convenor, ACT Greens) (10.20): The superannuation account liability is now around 52 per cent funded, still significantly down from 2008 but improved from 2009. The Greens’ major concern with the operation of the account, and the matter I will focus on this evening, is ethical investment.
I was very pleased to hear the Treasurer say that a review of the principles of responsible investment has finally been undertaken and that we will be provided with
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