Warren Snowdon (Lingiari, Australian Labor Party, Minister for Defence Science and Personnel) Share this | Hansard source

I am pleased it is appreciated. Then there was the issue of lack of consultation. Let me make it very clear that I, personally, have met with the DFWA and the RSL regarding the amended bills. Both were consulted on the revised legislation and are satisfied that the amendments address of their concerns. So let us not have the argument that has been put that somehow or other there is no support for these proposals in the veterans community, because there is. We did the negotiation. We discussed it with people to make sure they were onboard with us—not necessarily onside with us—in terms of these recommendations and this legislation.

There was a question of a lack of demonstrated benefit, which of course we addressed. I say to the members opposite that, really, this is very important legislation for Australian Defence Force personnel, whose benefits will be substantially improved as a result. It is estimated that a 0.5 per cent increase in the net investment return for a member of the RAAF, who joins as an officer cadet and rises to the rank of group captain at retirement, will lead to an increase in superannuation benefit of $95,000 over full career, or $41,000 over 10-years service.

This bill seeks to improve the level of member benefits, and it will, improve service levels and the governance of the main civilian and military superannuation schemes by establishing the Commonwealth Superannuation Corporation. The opposition does not disagree with the merits of this legislation; it disagrees with one component of it—the right of employees to be represented by a trade union and the right of employees to have their trade union's peak body represent them on the board. Let me just put to bed once and for all the clear contradiction between that position and the position which operated whilst they were in government. The Superannuation Act 1990 establishes the current civilian superannuation board, ARIA, with the appointment of members to the board set out in the trust deed at clause 4.1, which provides:

Three of the Trustees shall be persons nominated by the Australian Council of Trade Unions …

It is an accepted principle. The appointment process for the consolidated board is consistent with the existing process. So let us not have this confusion that somehow or another we are doing something new and different. We are doing something which is consistent with past practice.

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