SOUTHERN STATE SUPERANNUATION BILL

Second Reading

Adjourned debate on second reading.

(Continued from 29 April 2009. Page 2132.)

The Hon. M. PARNELL (16:51): Over the past several years, every time a superannuation bill has come before this chamber, I have got to my feet to exhort the government to include an ethical option for public servants. I have always claimed that our public servants deserve the same rights as members of the general community, that is, to choose an ethical superannuation option if they wish to do so.

On this occasion, I rise not to wholeheartedly congratulate the government on accepting everything that the Greens have called for over the past several years but to at least acknowledge that we have made some tentative steps in the right direction. Earlier this year, Super SA wrote to people who had corresponded with it calling for an ethical option. The letter reads:

The Super SA Board has asked me to write to all members who may have previously expressed interest in a Socially Responsible Investment (SRI) option being offered by Super SA. I am pleased to advise you that we are introducing an SRI to members of the Triple S and Lump Sum schemes and investors in Super SA's Flexible Rollover and Allocated Pension products. The investment option will be called the Socially Responsible—Balanced option, and will be introduced on 1 March 2009. More information about the option can be found on the enclosed fact sheet. If you require further information, please contact Member Services on 1300 369 315.

The Greens' campaign over two years has at last borne some fruit. The campaign has involved hundreds of letters and emails, numerous petitions to parliament, and bills as well. What we know so far about the scheme, other than the fact that it is recently introduced, is that it will have similar return and risk characteristics to a balanced fund. I think that an important part of the debate that we have had in this place has been whether an ethical investment option is in fact some form of donation—whether you are doing your money or whether in fact you are going to get a competitive rate of return. The evidence is that these funds do perform well and, in many cases, out-perform traditional investments.

The approach that has been taken is to screen out companies involved in certain industries, such as tobacco, nuclear power, armaments, gambling, alcohol and pornography. The managers of the fund will be headed by AMP. The assessment criteria include ethical considerations, labour standards, social and environmental considerations and also governance. The reason I am holding back slightly in my praise of this initiative is that what we find is that the scheme is at the softer end of the spectrum for ethical investment.

My understanding is that the companies invested in will include all the big fossil fuel companies, such as Exxon Mobil and Royal Dutch Shell, but companies such as James Hardie still manage to get into the mix as well. I think there will still be some work to do if we are going to give real choice, but I do want to acknowledge that this is a start. The other point that I think is worth making is that schemes such as this can fail if there is insufficient marketing to members to encourage people to take it up. Certainly, Triple S has written to me as it knows that I am interested in this, and it has written to people who have written to Triple S, but the question is whether or not it will engage in a full-blown campaign to advise all members of the Triple S scheme that this option is now available. Perhaps that has happened already, but certainly it had not happened some little time ago.

The Hon. R.I. Lucas interjecting:

The Hon. M. PARNELL: The Hon. Rob Lucas asks whether all my money is going in. The answer is yes. I have not mentioned the Parliamentary Super Scheme (the PSS3 scheme) of which I am a member, but that, separately to this Triple S scheme, has been brought within the SRI option. As soon as I can get around to filling in the paperwork, I will be signing up to that scheme, and I urge members to do likewise. The Hon. Rob Lucas will be watching the performance, and so will I. I am confident that I am not doing my money. I am confident that the rate of return will be commensurate with the option already on offer.

With those brief words, the Greens will be supporting this bill, but I wanted to put on the record the fact that the Greens' campaign for an ethical super option for public servants has borne some fruit. The fruit is a little undersized and there is still some way to go, but it is a good start.

Debate adjourned on motion of Hon. I.K. Hunter.