24th Jun 2013, 10:55 PM – Senate Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2013 - Second Reading - Independent directors

The majority voted against a motion to amend the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2013.(The text of the proposed amendment can be found here. )

The amendment was introduced by Liberal Party Senator Mathias Cormann to address concerns that the Opposition held about the absence of independent directors on industry superannuation fund boards.

Someone who voted Aye supported the amendment. The majority voted No so the amendment was unsuccessful.

Debate in Parliament

Liberal Senator Cormann argued that the amendment was based on a recommendation made by the Cooper Review into superannuation,(According to the media, the Cooper review recommended "sweeping changes". ) which was that at least one third of directors on industry superannuation fund boards should be independent directors. This would replace the current equal representation model, which Senator Cormann described as a “cosy arrangement with union representatives in charge and employer representatives making up the numbers”.(Read Senator Cormann's contribution here. ) He said that independent directors were important because they are not limited by union or employer interests and so can offer a dispassionate view. The Opposition accused the Government of not following this Cooper Review recommendation because of pressure from the union movement.

The Labor Government did not comment on this amendment.

Background to the Bill

The Bill is the fourth and final legislative bundle implementing the Stronger Super reforms announced by the Labor Government in 2010.(More information about this Bill and the context surrounding it can be found here.) It introduces a number of corporate governance measures that arose out of the Review into the Governance, Efficiency, Structure and Operation of Australia’s Superannuation System (known as the Cooper Review) and the Government’s own consultations with industry, employer and consumer groups.

References