The Abbott government’s proposal to appoint additional external directors to industry super funds is an unnecessary ideological attack on the retirement savings of working Australians, a senior union leader has warned.
The proposal would see additional costs imposed on the industry funds, which have consistently out-performed retail super funds since the superannuation system was opened up to competition.
“The results over the past years and decades show that employer and union representatives are better managers of workers money than bankers and corporate figures,” Electrical Trades Union secretary Allen Hicks said.
“The imposition of outside directors with their own interests imposes extra costs on industry super funds, which will inevitably erode their performance.”
“This is a perfect example of an incompetent and ideologically driven government seeking to fix something that has never been broken.”
"The government has said that the goal of its exercise is lower fees and better outcomes. Industry super funds already charge less and deliver more, and they’re trying to undo that.”
Industry super funds have consistently delivered better returns for members, and do not pay commissions or return profits to shareholders.
Mr Hicks said his union would urge Labor, Greens and the cross bench to vote against the changes.
“This is an opportunity for decent parliamentarians to show they are not beholden to ideology or corporate interests and to represent the people who elected them.”
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