I am alarmed with the direction superannuation in Australia has gone. With $3.5 trillion in super funds being influenced by unions, these funds are increasingly being used for social engineering and political purposes. Millions of dollars has been donated to the Labor Party to support their renewable energy agenda and other Labor policies.
Some funds have even leveraged their shareholdings to seek board positions at companies like Origin Energy, aiming to influence corporate decision-making. It’s startling to see super funds involved in social engineering rather than focusing solely on member benefits. The ALP-linked industry funds are now acting as fundraisers for the ALP, having contributed $13 million dollars of members’ money to the party in the lead-up to the last election.
An important question worth investigating is whether the mismanagement of these funds could be impacting wages and driving up the cost of living.
Transcript
Superannuation has become an institution in Australia, one that has not been reviewed for almost 15 years. The superannuation pot of gold is now valued at $3.5 trillion in an economy that is valued at only $2.6 trillion. While I say ‘pot of gold’, slush fund may be a better description—in the hands of some funds, anyway. Industry super funds are distorting the economy and using their huge wealth to invest politically rather than in the best interests of their members. The renewable energy monster currently devouring our economy and our beautiful countryside is substantially funded by industry super funds. These political investment decisions are made by boards that contain up to five members drawn from the union bosses that fund the service. Investment is made in a way that supports the Australian Labor Party’s political agendas. That is clear.
Former Labor Prime Minister Paul Keating, the man who had a fair bit to do with starting superannuation, has warned that super funds will start asking for board seats from companies in which they take a substantial position so they’re union controlled. Two investment funds tried to take over Origin Energy last year and led the company toward sounder investment strategies. Australian Super drastically increased a stake in the company to vote down the proposal. According to an article in the Financial Review:
… super funds’ decarbonisation commitments could push them to put directors on boards, if their other attempts at engaging with companies to drive down their emissions failed.
Really? Is this the job of superannuation funds now? Social engineering?
Industry super funds may force targeted companies to employ union members or agree to union sweetheart deals. They may force target companies to follow the woke globalist Labor Party agenda, such as DEI, diversity, equity and inclusion. Although, industry super fund CBUS has gone one further and added a B for ‘belonging’, designed apparently to welcome employees who are Arthur one day and Martha the next. Despite two LBGTQIA+ turning into an alphabet soup of debasement, REST are proud to be an ally of Pride Month and all that goes with it. Super funds can afford this non-commercial activity because they have a river of gold and cash flowing into their coffers every year from members who falsely think their super fees are being spent in their own interests. Silly them. In fact, super funds sent $13 million to the ALP in the lead-up to the last election; CBUS alone was $1.5 million of that, more than a tenth.
Direct payment is not the only way super funds are fed back to the unions. Then on to the ALP. Industry funds pay unions to run training programs with very generous payments. It’s not quite a protection racket, but it’s along the same lines. Board members on super funds also receive very generous salaries, which are then sent back to the union and form part of the $17 million paid by unions to the ALP. CBUS, for instance, pays its board members $457,000 per annum each year, which makes REST look positively reasonable at only $165,000. This explains why, during COVID, when the Morrison government made a very sensible suggestion to allow everyday Australians a chance to use just a little of their super to get through COVID, the ALP lost its mind. Their super fund donors were unimpressed with having to give up what turned out to be $80 billion of their 3.5 trillion back to the people who gave it to them. Apparently, pride parades and social engineering don’t fund themselves.
The misuse of funds by superannuation companies raises a serious question: is superannuation reducing wages? meaning there is no direct financial benefit to the worker making the contribution. This is theft. The Grattan Institute has produced data to show that it is, in fact, the worker who pays for this so-called employer contribution in reduced wages and reduced employment opportunities. It’s time for a detailed inquiry into this boondoggle to ensure workers are not losing from this system.
The PRESIDENT: The question is that the motion moved by Senator Hanson be agreed to.
The Senate divided. [16:58]
(The President—Senator Lines)
