Andrew Bragg (NSW, Liberal Party, Shadow Assistant Minister for Home Ownership) Share this | Hansard source

The government of Australia is about to preside over the greatest conflict of interest in modern times, because the government of Australia is going to allow major super funds to pass on enormous regulatory fines for their wrongdoing to their members. The trustees of these major funds who have made huge errors will have these fines paid by the workers. It's a howling conflict of interest which goes to the centre of this government, where one of the main players is the National President of the Labor Party, Mr Wayne Swan, who is also the chair of Cbus Super. The Labor Party was surprised, apparently, when Nick McKenzie of 9News exposed heinous crimes of the CFMEU. These, with the CFMEU's 30 per cent tax on Australian building, have inflated the building costs for all Australians and have made the Australian dream further out of reach for younger people wanting to buy an apartment.

The conflict of interest in relation to Industry Super and Cbus was well known and has been for a long time. In fact, Jeremy Stoljar, the counsel assisting the Hayne royal commission, said of the Cbus CFMEU issue that Cbus was infected by the separate private interests of the CFMEU and a deep-seated loyalty to these interests. A review by Mr Graeme Samuel, the former head of the ACCC, recommended the end of this model. He said of Mr Swan: 'It's a very powerful position to hold as chair. It sets the tone and culture of the organisation. If he's got a tendency or history supporting certain groups, then you've got a problem.' He said, 'And Wayne Swan is a perfect example of a political operative, so then you have a question about the absolute independence of the chair.' That was the view of Graeme Samuel almost 10 years ago, when he recommended reforms to Cbus and the super funds, which have not been adopted. The prudential regulator, APRA, has now had to come in and commissioned a new inquiry into Cbus's governance—the same thing that Graeme Samuel did 10 years ago. APRA, I'm sure, is going to have to recommend that there is a better system here which protects workers.

Yesterday, the CFMEU, which owns Cbus, tried to put three new directors onto the board of the fund. APRA apparently seems to be resisting this. The issue here of conflicts of interest is enormous, because Mr Wayne Swan, as the chair of the Cbus fund, has publicly committed $500 million to the Housing Australia Future Fund. That's usually a role reserved for the chief investment officer, but no; the president of the fund, who is the president of the Labor Party, apparently commits members' money to the government's boondoggle housing scheme. Then the Treasurer, Jim Chalmers, covers up the secret lobbying undertaken by Mr Swan through bogus public interest immunity claims made here in this parliament. It's appalling. But the main point is that, when they make a mistake, you pay. The trustees have made a mistake, according to the Australian Securities and Investments Commission. Cbus fails to pay insurance claims. So the workers of Australia pay insurance premiums for decades in some cases, and, when there is a family bereavement, the super fund refuses to pay. That is the opinion of the corporate cop and the Financial Complaints Authority. When they issue a fine—and, in this case, Cbus might be facing a $50 million fine—that fine is passed on to the members. So the poor old members pay these fees.

Where is Labor on this issue? We've asked the question—we asked Senator Gallagher in the Senate. Her view is that it's a matter for the regulator. But, when there were issues of corporate malfeasance, the Treasurer was fast to condemn Woolworths, where he said, 'I need to be careful not to pre-empt, but I will say this: we don't want to see ordinary Australians, families and pensioners being taken for a ride by the big supermarkets.' But, on the Cbus issue, he says, 'It's really important that regulators can do their job, and I won't be making any further comments.' So the government is quick to condemn wrongdoing in corporate life, corporate Australia. They wouldn't even vote yesterday to disclose the Samuel review and they worked with the Greens—the Greens have been big on PwC—but they're small on Cbus. The question is: why do the workers of Australia have to pay for this ridiculous conflict of interest?

The super funds are privileged people. They open the door; the money falls in. The least they can do is treat people with respect, pay their claims and do the right thing. We shouldn't have a situation where the Treasurer is using his position to cover up for the crimes of Mr Swan and the Cbus super fund. It's a disgrace.