Govt, independents block super fund board amendments
The Federal Opposition secured a fleeting win on the question of imposing independent directors on the boards of industry superannuation funds, only to have it reversed by the Government in league with the independents in the House of Representatives.
The Opposition secured its initial win because a number of Labor members were absent from the chamber, allowing Coalition amendments supporting the appointment of independent directors to be passed. However within a few hours, the Minister for Financial Services, Bill Shorten, had managed to reverse the situation.
Lamenting the outcome, the Shadow Assistant Treasurer, Senator Mathias Cormann, claimed "the Independents helped Labor entrench union dominance of industry super funds, ironically by blocking the appointment of independent directors on those boards".
"It seems like the Independents in our Parliament don't like independents on super boards," he said. "This is very disappointing."
Cormann said the amendment which had been rescinded would have ensured that at least one third of the trustees on relevant superannuation boards had to be independent and was based on the recommendation of the Cooper Review.
"The Cooper Review appropriately recognised that, for a whole range of reasons, the so-called equal representation model with union and employer group representatives only represented on the board, is no longer appropriate in the 21st Century," he said.
"Superannuation has grown significantly since 1991, when the equal representation model was first entrenched in legislation. Improvements to corporate governance arrangements have to reflect that change."
