Report on Roundtable on choice of superannuation
funds
Senator Watson, the Chair of the Senate Select Committee on Superannuation
and Financial Services, said that he was ‘very concerned about and
critical of a recent Labor Party spokesperson’s grossly misleading
press statement about the Committee’s report on Roundtable on
choice of superannuation funds which was tabled in the Senate today.’
Senator Watson said ‘In contrast to the Labor Party’s assertion,
there was in fact very strong support for the concept of choice of fund
expressed at the roundtable. This support has been demonstrated by recent
market surveys which have actually shown a strong support for choice.
In a recent survey of 1200 households, commissioned by Mercantile Mutual
and conducted by the Melbourne Institute of Applied Economic and Social
Research, it was found that more than 80% of Australians supported member
choice of super fund.’
Senator Watson said: ‘It is regrettable that some of the quotations
made in the Labor Party Press Release were incorrectly taken out of context,
in particular, those of Mr Howard Rosario, Chief Executive of Westscheme
Superannuation Fund. Mr Rosario was in fact referring to the situation
in WA where there was an absence of consultation prior to the introduction
of choice. During the roundtable, Mr Rosario actually commended the federal
initiative in conducting such a wide ranging public debate prior to the
introduction of any choice regime.’
Senator Watson also said: ‘It was essential that benchmarks be established
to identify weaknesses in the Western Australian scheme in examining the
issue of choice in the same way that the previous Superannuation Committee
evaluated the UK newspaper magnate, Robert Maxwell’s theft of employee
superannuation funds, when developing the SIS Bill.’
‘In addition’, Senator Watson said, ‘the quotations used
by the Labor Party were very selective in suiting a particular point of
view.’
‘Assertions by the Labor Party that the report comments on a Bill
are also misleading and incorrect – the report was not on a Bill
– the report actually reflected the views of a roundtable forum held
to identify developments since the Committee’s last report on choice
of fund two years ago.
Comments by the Labor Party that fees, charges, advertising and marketing
costs will rise and eat into hard earned retirement saving nest-eggs are
nothing short of scaremongering and failed to acknowledge other areas
where in the modern environment costs may dramatically fall. In fact,
independent actuarial advice given to the Committee indicated that $424
million could be saved from consolidation under choice and this would
be even greater under an e-commerce environment’.
Senator Watson said that : ‘The Committee’s report reflects
the views of participants at a roundtable of interested industry,
consumer, union and other organisations. The aim of the roundtable forum
was to provide the Committee with the opportunity to identify, with the
help of these people, the best features that might be considered in any
future choice of funds regime. The objective of the report was to reflect
their views.’
Senator Watson emphasised that: ‘the Committee has drawn no conclusions
and made no recommendations in its unanimous report’.
Senator Watson also said: ‘The report should bring a good deal of
comfort to many, as they have had the opportunity to express their views
and to be engaged in the policy formulation process.’
| For comment: |
Senator John Watson
Chair
|
02 6277 3685 (Canberra) or
03 6331 4544 (Launceston, TAS) |
| For information: |
Sue Morton
Secretary
|
02 6277 3458 or
0416278258 |
| Internet access: |
https://www.aph.gov.au/senate/committee |
|
| Email: |
super.sen@aph.gov.au |
|
16 March 2000
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