There will be many in the financial services industry who will welcome the return of Chris Bowen to over-arching management as Federal Treasurer of the Financial Services and Superannuation portfolio, albeit up until the next Federal election.
Bowen, in his first incarnation as the Minister for Financial Services and Superannuation, earned the grudging respect of the industry for the manner in which he sought to balance the competing interests of the various stakeholders – and his efforts not to be seen to be unduly favouring the Australian Labor Party’s traditional constituents, the trade union movement and, to some degree, the industry superannuation funds.
The immediate past Minister for Financial Services and Superannuation, Bill Shorten, will not be similarly benevolently remembered by the industry for the simple reason that he was never perceived as balancing the competing interests of the stakeholders. Indeed, there was a widely-held perception that he favoured the interests of the industry funds.
Shorten, last week, sought to bid farewell to his portfolio responsibilities for financial services by issuing a statement within which he outlined what he saw as his policy and legislative achievements – noting, amongst other things, the lifting of the superannuation guarantee, the abolition of the 15 per cent tax paid on superannuation for those earning up to $37,000, and the introduction of the Future of Financial Advice (FOFA) changes.
And it is true that all these things occurred on his watch as minister. However, those who participated in the exercise will remember the almost tortuous processes which were endured to reach legislative outcomes with respect to both FOFA and Stronger Super.
The introduction of legislation in tranches, while not unprecedented, is not a normal process. Shorten should take no pride in the fact that both FOFA and Stronger Super were broken into tranches, with the result that some parts remain incomplete.
Nor is it normal for legislation to be so late in being dealt with by the Parliament that an industry is left uncertain about the regulatory consequences almost right up until implementation.
Then, too, it is highly unusual for the Government to use a politically-aligned proxy such as the Industry Super Network to negotiate some of the more sensitive elements of legislation while they are being actively debated on the floor of the Parliament.
Bill Shorten, who was instrumental in deposing Kevin Rudd as Prime Minister, gained entry to the Cabinet under Julia Gillard as the Minister for Workplace Relations, and despite the gravity of that portfolio chose to remain Minister for Financial Services and Superannuation. Many interpreted that choice as his desire to oversee the completion of a particular agenda.
That agenda is now, largely, complete – but Shorten should expect little genuine thanks and few laurels from those left to execute the changes to the financial services industry.
