Robert Oakeshott (Lyne, Independent) Share this | Link to this | Hansard source

asked the Treasurer, in writing, on 16 August 2011:

Do investment guidelines exist for ethical investment of public money, including the Future Fund; if so, are they publicly available; if not, what steps are being taken to introduce ethical investing guidelines throughout the Commonwealth public sector.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

The answer to the honourable member's question is as follows:

The broad framework for the management of public money and property is contained within the Financial Management and Accountability Act 1997 which includes the requirement that agency Chief Executives manage agencies' affairs in a way that promotes the efficient, effective and ethical use of Commonwealth resources.

Investment policies are the responsibility of the relevant investment bodies, subject to the legislation applying to these bodies. For example, the Commonwealth Superannuation Corporation, which is the consolidated trustee board for Commonwealth superannuation schemes, details its environmental, social and governance practices on its website (http://www.aria.gov.au/about/governance/esg.html).

The Future Fund Act 2006 sets out the main objective of the Fund, which is to enhance the Commonwealth's ability to discharge unfunded superannuation liabilities.

The Government expresses its broad expectations for the investments and management of the Future Fund through the issuance of Investment Mandate Directions (the Investment Mandate). The Investment Mandate was issued by the previous government in 2006.

The Government is committed to ensuring that the investment activities of the Future Fund Board of Guardians (the Board) remain independent of Government and for this reason does not interfere in its investment decisions. This is in the best interest of the tax payer.

The Board has a Statement of Investment Policies for the governance and management of the Future Fund. This is a public document and the current version is available on the Future Fund website (www.futurefund.gov.au) under 'Investment'.

Among other matters included in its Statement of Investment Policies, the Future Fund has made it clear that it expects to consider investments across a wide variety of economic activities, provided they are legal in Australia and do not contravene international conventions to which Australia is a signatory.