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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2022-07-07 Daily Xml
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Superannuation Funds Management Corporation of South Australia (Investment in Russian Assets) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 5 May 2022.)

Ms CLANCY (Elder) (16:10): For over 130 days, South Australians and the broader local community have watched in horror as Russia invades Ukraine. Our televisions and mobile phones have been covered with images and footage of conflict and destruction we are unable to explain to our children or even understand ourselves. The unjustifiable aggression shown by Russian forces over these four months has drawn strong condemnation from the global community, and rightfully so.

Over 4½ thousand innocent Ukrainian civilians have had their lives stolen from them by the hands of a violent authoritarian regime. It has been reported that many deaths have come at close quarters by Russian armed forces. As of 26 June, the United Nations High Commissioner for Human Rights verified that 330 children have been killed since the invasion began. Three hundred and thirty future teachers, nurses, cleaners, coaches, thinkers and world changers have been taken from the Ukrainian people far too soon.

This barbaric crusade of violence and suffering has created a humanitarian crisis, as Ukrainians look to their neighbours in their time of need. The United Nations has suggested that as many as 12 million people have fled their homes since the invasion began, with more than five million seeking refuge in neighbouring countries. As we watch the resilience and bravery of the Ukrainian people in the face of such evil, I am filled with hope as a young nation led by their president fights for their sovereignty and their freedom.

Democracies such as ours must do everything they can to ensure the prosperity of our global community. As the people of Ukraine are showing the world, injustice anywhere is a threat to justice everywhere. I was proud to stand as a candidate with the Malinauskas Labor team, who committed to amending the Superannuation Funds Management Corporation of South Australia Act 1995 to enable ministerial direction to enable the removal of state government funds from Russian assets. I maintain that pride as I stand here today as a member of this place.

This bill will divest $60 million worth of Australian workers' super held in Russian assets by Funds SA. By amending the act, we will effectively end state government funds and the superannuation of the state's public sector workers being invested in Russian assets. I am pleased that, in addition to this bill, our government has shown support to the Ukrainian people in other ways. Some time ago, the government received a request from the Australian Federation of Ukrainian Organisations, who reached out seeking a donation of medical supplies to assist communities in Ukraine. I am so pleased this substantial medical assistance was provided.

The Malinauskas government has provided over 20,000 items of medical equipment. Included in the shipments are items that can be used in their hospitals to support injured civilians or soldiers, including masks for adults and children, first aid and wound dressings, pulse oximeters, emergency medical kits, nasogastric tubes, hypodermic syringes and many more items. These pallets of medical devices and materials were dispatched in early April and arrived in Ukraine some weeks ago.

They are now being used in hospitals across Ukraine by doctors, nurses and other clinical staff. Thank you to SA Health, the Minister for Health and the Premier for helping to make this happen. This equipment is supporting innocent people who are suffering because of this invasion. More life-saving medical equipment will also soon be on its way to Ukraine to support local hospitals and healthcare workers, with 70 defibrillators, which have previously been used by our ambos to save South Australian lives, being flown to Ukraine over the coming weeks to save Ukrainian lives.

There is something extra special about these defibrillators: the children of South Australia's Ukrainian communities have drawn handwritten messages of support on them. This important donation was organised by the SA Ambulance Service and the Australian Defence Force will deliver each box of urgent aid amid a desperate need in Ukraine for medical equipment during the conflict.

The defibrillators will be deployed to field hospitals, enabling health workers to deliver a shock to patients experiencing cardiac arrest to induce a normal heart rhythm and potentially save hundreds of lives through this conflict. The dual heart monitoring devices will be shipped to Ukraine in batches, along with rechargeable batteries. I would also like to take this opportunity to acknowledge the support provided to Ukraine by a company in my electorate of Elder, Micro-X, located in Tonsley.

The Tonsley precinct is such an incredible hub of innovation and Micro-X is no exception, with their innovative medical and defence products using world-leading technology. I was able to see some of these products during my visit a couple of weeks ago, including their bedside X-ray units, their Rovers. The Rover, designed and manufactured in South Australia, began by supporting trauma imaging in military medical facilities.

Its lightweight and rugged construction means the medical staff can use the imaging machines in emergency settings, particularly in deployed and temporary hospital environments. The Micro-X Rover is six times lighter than conventional mobile X-ray machines and its design means that it can easily go where it is most needed. Micro-X partnered with four US-based non-government organisations, who purchased the Rovers at a discount and arranged their transport to Ukraine.

There are currently 11 of the South Australian made Rovers over there and, knowing the make-up of some of that workforce at Micro-X, it is highly likely that former Holdens' workers played a part in their manufacturing. These Rovers are located primarily in Central Ukraine, in cities that have been exposed to fighting including Kyiv. Since their delivery, Micro-X has been in contact with the NGOs who have reported that the Rovers have been life saving, as it means people can get X-rays when they arrive at a hospital and be diagnosed more quickly, instead of waiting to be taken to an imaging room.

It is really heartening to hear and know that a South Australian product is making such a difference overseas. Our government's donation of defibrillators, the previous donation of medical equipment and this bill show that our government's stands with the people of Ukraine, and I commend the bill to the house.

Mr COWDREY (Colton) (16:17): I rise today to speak to the Superannuation Funds Management Corporation of South Australia (Investment in Russian Assets) Amendment Bill 2022. I stand to indicate the opposition's support for the bill and, most certainly, the intent of the bill. The opposition joins the government, and we stand side by side and hand in hand in expressing our horror in regard to the continued events that are transpiring in Ukraine.

The opposition likewise believes that it is our obligation, this parliament's joint obligation, to ensure the principles of our democratic freedoms and our democratic beliefs are defended and promoted. We join the government in expressing that the actions and aggression being displayed by Vladimir Putin and Russia cannot be tolerated. When Russia invaded Ukraine, international financial sanctions were imposed on Russia in response to its ongoing threat to the soft entry and territorial integrity of Ukraine.

This bill seeks to provide a mechanism for the minister for Funds SA to provide a direction for the divestment of Russian assets held by Funds SA on behalf of Super SA members. In its latest update of the situation, Funds SA has advised on its website, dated 7 March 2022, that majority divestment has already been achieved and that the original exposure to Russia of approximately $60 million has been reduced to $9 million or 0.02 per cent of the total investment portfolio held by Funds SA.

It does appear that the remainder of the funds will be difficult to divest while strict international trade and economic sanctions exist. Despite this, Funds SA has been actively engaged with its external investment managers regarding exposure to Russian securities and has been implementing sanctions imposed by the Australian government. It is expected that this amount may have changed marginally since 7 March 2022 when this media release was made public.

Funds SA further advises that it will continue to seek divestment across the portfolio from its investment managers, but notes that trading restrictions in key markets make this difficult at the current time. I add this to give context to the level of investment that currently stands in Russia prior to the moving of this bill. I again confirm that the opposition will be supporting this bill but that we do reserve our right to move amendments in the other place.

Mr FULBROOK (Playford) (16:20): From the comfort and safety of these green benches, I rise in support of this bill. I can only imagine the contrast between our lives in Adelaide and the unnecessary suffering inflicted on a proud and decent people on the other side of the world. We are all very lucky to be away from this bloodshed but, as global citizens who enjoy this peace, we are obligated to speak out when this is threatened and to act whenever possible.

While we are dealing with the tip of the iceberg and a problem that is inflicting immeasurable misery, this bill is the right thing to do. There are so many things we can do in support of the Ukrainian people, and this should be seen as just one of them. In doing so, this is a line in the sand that must be drawn. Beyond the intent to pull South Australian investment out of Russia, it should also be seen as a wake-up call to any other tyrant believing their behaviour will go unnoticed. We live in a global village and we must make it clear that there are rules and standards we must all abide by.

As investors through our superannuation, we are also realising the power we have in saying where our money should be going. I know that I am not alone in my view that South Australian funds should do good in the world rather than prop up acts of evil. Because of this, it is perfectly reasonable for the minister to require Funds SA to divest its remaining Russian assets. While our parliament can produce motions in condemnation of the Russian invasion of Ukraine, I believe actions speak much louder than words.

Through this bill, we are not only making a symbolic gesture in opposition but also helping to weaken a war against the innocent. Some may question the point of doing this, given the low levels of investment in Russia, but I believe otherwise. We may only deliver a scratch, but every journey begins with a single step. We are not the only jurisdiction to condemn this barbarity, and we are also not the only jurisdiction to have the legislative levers to control where our hard-earned money goes. While this may scratch the Russian war effort, if other jurisdictions follow we can turn a scratch into a bruise and then, over time, into a dent.

In delivery of these words, I want to make it very clear that the Russian people are not our enemies. Just as we have grown up happily with Ukrainians around us, we are also enriched by many Russian families who call South Australia home. The beauty of our state is that we are mature enough to draw the distinction between the Russian people and the tyranny of Russia's leadership. They are not one and the same, and Russians living here should continue to uphold and be proud of who they are.

Just as I said to a gathering of African refugees in Salisbury last week, the Malinauskas government is proud of and will continue to support you. We will not allow you to stop celebrating who you are. In upholding this sentiment, I also want to acknowledge and give praise to the many Russians in South Australia who have stood shoulder to shoulder with the Ukrainian community in condemnation of the war. We know this is happening, and we will not allow you to be tarred by the same brush.

I note there is a clause within this bill for an annual review of the circumstances. This is also the right path to take. I hope there will come a time in the not too distant future when we can lift the restrictions that we are debating today. A Russia removed of the shackles of tyranny is in everybody's interest. The moment that day arrives, we must be there to support this new beginning. In the meantime, we must stay focused on doing what we can in support of the people of Ukraine.

I was moved by a quote from a Welsh logistics manager, Shaun Hopkins. Mr Hopkins discovered charities were having trouble getting supplies into war-torn Ukraine, so he took it upon himself—despite using crutches and a wheelchair—to drive to the war-ravaged country and deliver them. In context to his efforts, which have to date led to 19 convoys from Wales joining the effort, he said, 'We want more people to come forward and channel that energy into action rather than empathy.'

While empathy for this terrible situation is important, it is vital that we follow the lead of Mr Hopkins and go beyond sympathising to take whatever action we can. It is easy to suggest that as a small state half the world away we cannot make any impact, but just imagine if every other state in the country followed. I know from the words of our Prime Minister that beyond NATO Australia is making the world's biggest contribution in the aid of Ukraine.

With this in mind we need to accept that, if we stand in condemnation of the invasion, as a global community in which South Australia is a responsible participant, there is going to be a lot more to do. While we stand to stop the flow of money from Funds SA today, we must be prepared to act fast and be willing to make changes on other fronts in support of the Ukrainian people.

My mum is regularly in contact with her brother in neighbouring Poland. On top of grappling with an influx that has so far seen 4.3 million refugees into Poland, we hear of her homeland living on the edge as well. The industrial parts of the south of Poland produce a vast array of armaments. Each day, low-flying fighter jets fly over her home town in surveillance and concern that local factories could become targets.

The heightened fear and suffering this conflict is causing is spreading by the day. On figures from May this year, neighbouring countries of Ukraine have so far received 12 million refugees. We need to be mindful of this, and also offer them support, knowing the difficult circumstances that they also face. This unnecessary war does not stop at any particular border, but instead sends shockwaves across the world.

The notion of this bill was in its early stages just a few months ago, when it was first raised by the Premier prior to the election. To be on the verge of enshrining it into legislation in just over 100 days since taking office reflects a lot of hard work and the will to make it happen. I want to pass on my thanks to all those behind the scenes who have helped bring this bill before us today. My words have been chosen very carefully as the mere thought of sounding jubilant while a crisis is happening on the other side of the world fills me with dread. In respect of the unnecessary bloodshed caused through this conflict, I solemnly commend this bill to the house.

Ms HUTCHESSON (Waite) (16:28): I could never have imagined that in 2022 we would be in a situation where war is raging in Europe and a whole country is being decimated. Surely as a world we should have moved on from this course of action. For Russia to display such aggression with no care for human sacrifice is devastating.

With 7.1 million people internally displaced and five million fleeing to neighbouring countries, it is a humanitarian crisis of epic proportions. The pictures coming out of the media show the complete decimation of towns: there is literally nothing left. These Ukrainians have no home to go back to, yet they show up bravely trying to defend their country, with farmers using every tool and tractor they own to try to withstand the assault.

Ukraine is a country of fighters and they are not giving up under any circumstances. We need to support them as much as we possibly can. They are protecting their right to democracy, and that is something that we need to throw ourselves behind. The world has moved to impose economic sanctions on Russia in response to this aggression, such as banning new investments in Russia, freezing the assets of Russian banks, and sanctioning their financial institutions.

The Australian federal government has moved to prohibit imports of energy products as well as prohibit the supply, sale or transfer of certain luxury goods. We as a state government have been supporting the humanitarian crisis, providing medical equipment and safe passage to refugees, but we need to be able to do more in regard to our response to the Russian aggression.

A few weeks back I joined my community in a fundraising event in Blackwood hosted by the Blackwood Action Group. It was a fashion parade that brought our community together to show our support for the Ukrainian people, a parade with heart. After the parade, we heard about what Ukraine is like in more peaceful times and watched a video in which there was a heartfelt plea from Ukrainians for peace. Over $6,700 was raised to go directly to Ukrainian refugees who now call South Australia home.

These people are fleeing their homes with barely a bag of clothes, sometimes less, and I am glad our government has opened its doors to these refugees. Providing support to displaced Ukrainians is important, but we also need to address the Russian aggression. The Premier was clear prior to the election that as a government we would move swiftly to direct Funds SA to divest Russian investments. In order to do that, the act needs to change. It currently does not have a mechanism by which the funds can be directed by government.

Removing state government funds from Russian investments is an important step, and I know I will feel better knowing that my superannuation is not aiding the Russian assault. I am sure many in the public sector feel the same. The amendments contained in this bill will enable a direction by the minister for the divestment of Russian assets to occur in a sensible way that will target Russian-held investments. Workers' superannuation needs to be protected to avoid significant loss.

Funds SA has already started this process, already divesting a significant volume of Russian funds, but in the interests of fund members in South Australia it is appropriate to ensure the divestment occurs responsibly. This may take some time, but it is clear we need to ensure the minister has the ability to direct Funds SA to divest the remaining Russian assets. These amendments are the right thing to do, they are what our community expects us to do and I commend the bill to the house.

The Hon. S.C. MULLIGHAN (Lee—Treasurer) (16:31): It gives me great pleasure to rise to make a contribution on the Superannuation Funds Management Corporation of South Australia (Investment in Russian Assets) Amendment Bill.

This is an unusual bill, and it comes from a time when, as other members have articulated to this place, almost unthinkable circumstances are occurring over in eastern Europe as we speak. I think this is the first time since the Second World War that there has been an invasion of one European country by another, a situation we thought we were well past, particularly given the developments of the late 20th century. Alas, we are not.

This particular change comes about as a result of a public discussion that occurred in the lead-up to the recent March election when, at the very beginning of the Russian invasion of Ukraine, the state's then political leaders, the member for Dunstan and the now Premier, the member for Croydon, were hosted by The Advertiser in a debate-type forum. The question was raised about whether the state, directly or indirectly, held any investments in Russian assets and, if so, what would be done about it.

The then Premier, the member for Dunstan, responded that we did; in fact, I think the then Treasurer had previously indicated publicly that there was a level of assets held which, in isolation, seems an extensive amount, an amount of some $60-odd million in the value of investments. As the member for Colton has pointed out, in the context of the overall amount of funds under management by Funds SA, that is only a very small portion; nonetheless, $60 million is no small beer.

As to what would be done about it, the response from the member for Dunstan, while technically correct, was disappointing, I think, at the time. It was, 'Well, nothing, because we have a regime in South Australia where we do not want ministers of the day or politicians directing an independent board superintending the independent management structure of Funds SA about where they should or should not invest their money.'

I do not say that to criticise the member for Dunstan; as I said, technically he is right. It is really important that we have that separation between the government of the day and the minister responsible for that agency and the investment decisions that that agency is taking on behalf of those entities and South Australians who have funds under investment with Funds SA. That is a very appropriate approach. The last thing we would want to see is a minister making decisions, considered or knee-jerk, about how these funds are invested.

Certainly, considering the events of the last two or three months—just as we saw the events of 2008 after Lehman Brothers fell over and the global share markets, including the Australian share market, started their considerable declines—the last thing we want is an elected official, a minister of the day, having to make judgement calls about the best investments to make and the timing of those investments. That is a recipe for disaster.

But the member for Croydon, the now Premier, in recognising that also recognised that this is an extraordinary situation that gives rise to the necessity for elected members, the government of the day and for a minister, in a very small and tightly constrained way, to have the capacity to reflect the community's expectations in how those investment decisions are made, so this is the purpose of this bill.

There is an overwhelming community sentiment at the moment that no-one—in South Australia, and I believe Australia and most parts of the Western world—wants to be party to supporting investments domiciled in a country that may have some direct or indirect effect on the Russian war effort. If that means investments that are held in Russian assets or Russian companies or Russian entities are somehow directly or indirectly involved in the Russian defence materiel effort or in some other way that is helping the Russian war effort, then that needs to be if not minimised then exited completely.

It has been quite the task to come up with a bill that balances the position that the member for Dunstan articulated—absolutely correct and sound in principle—with the position that the Malinauskas Labor government took to the election, and that is an attempt as far as possible to respect that principle but importantly to take action here. That is what we do with this bill. It ensures that we are very constrained in how we take action in this way.

As we know, the amount the previous government reported publicly that is under investment or is the value of those investments in Russian assets has declined considerably since the time it was outlined as being $60 million for a couple of reasons. One is that there have been some opportunities to divest those assets, but more importantly and more honestly, I think, we should recognise that those assets that are still being held, as the member for Colton said, are simply unable to be divested. There are very stringent sanctions on Russia and that is making it extremely difficult for governments and government agencies, including Funds SA and the fund managers they engage, to divest of assets that are domiciled in Russia or are otherwise considered to be Russian assets.

Because it is so difficult to transact in those assets, it means that the value of those assets has reduced very considerably. The overall value of the investments now held has declined considerably, and I fully expect that the opposition will want to know from the government what is the most recent value that we can attribute to those. We will invite the chief executive from Funds SA to provide advice during the course of the committee stage so that we can provide the most up-to-date advice to the chamber. But, suffice to say, it is significantly less than that $60 million we started out at.

It is important to recognise that some of the investments are extremely difficult to exit from. It might be, for example, that the state has a position in some sort of pooled fund, holding units in that pooled fund, and some of the investments held in that fund may be considered to be Russian assets, so not a direct asset holding but an indirect asset holding. There is likely to be a contractual obligation for the state to maintain its presence or its holding of units within that pooled fund that cannot simply be exited from in short order.

That is constraining the state to be able to immediately exit from those asset holdings. To do so would risk the state being in breach of the arrangements that were entered into when those units were undertaken and potentially risk incurring very significant losses. These are some of the concerns that the chair of the Funds SA board and the Chief Executive of Funds SA made absolutely clear to me when we were coming up with the best way to give effect to the government's election commitment for this bill.

We wanted not only to exit the ownership of these assets, directly or indirectly, as quicky as possible but at the same time we wanted to protect the value overall of the government's remaining assets to the greatest extent possible. You could imagine that the very strong appetite I alluded to before from the community to making sure that the government held no asset positions with Russian investments might perhaps wane considerably if it became clear that in order to exit from those investments it might incur losses in the tens or hundreds of millions of dollars, losses potentially considerably higher than the initial value of the investments when the information was first reported to the media by the former Treasurer.

In short, it is not simply done. I am extremely grateful, I have to say, to the Chief Executive Officer of Funds SA and also the board chair and, by extension, the board for their very collaborative, thorough and nuanced approach to making sure that we get this solution right. It also comes at a time when boards of companies, let alone companies responsible for the investment of funds, are actively considering their responsibilities under the developing ESG principles making themselves apparent across financial markets globally.

This is something the state government is turning its mind to, that is, that companies realise that they have a responsibility to their shareholders and to their employees that they must be good corporate citizens, that they have to act and be seen to act responsibly in the current global environment, and that making sure that there is a program of setting and sticking to a set of ESG principles is absolutely essential for organisations in this day and age.

It would have been an option, for example, for us merely to bring that work forward and impose it in legislation now, that Funds SA could simply meet the government's election commitment by adopting to and, for example, reporting on ESG principles. However, being frank, that perhaps would not have satisfied the community's desire to see in black and white that the government was giving effect to the commitment to divest itself as quickly as possible specifically of those Russian investments, and that is why we have arrived here.

You will see in the way in which the bill has been drafted that the action that the corporation takes to divest itself of these assets has to be taken prudently—and importantly consistently—with the corporation's pre-existing and overall objectives, and that is for the benefit of those organisations that place their funds under their investment. That makes it clear that the bill empowers only the corporation to take action in a way which does not otherwise place remaining investment funds at great risk.

That is absolutely essential not only for the comfort of the board and management, who have very strict fiduciary obligations, but also for the organisations that have placed their funds in trust with Funds SA for investment. It is also important that there is a responsibility for the corporation and for the government to be held accountable for how this bill is given effect, and that we report on a periodic basis as to how these changes have been given effect and to what extent investment activities have been changed or altered in order to divest these assets.

For example, and again foreshadowing, perhaps, one of the questions that may arise during the committee stage of this debate: what are the assets that still remain? What is the value of those assets, and if those assets are still being held what is the plan to divest of them, or is it in some cases simply impossible to divest? I gave an example of that pooled fund arrangement before, and so on.

I think that in the annual review of the effect of this bill, placing it in the annual report, which is required to be provided not only to the minister but also to the parliament, gives the parliament some satisfaction as to how the requirements of this bill are given effect. It is, of course, the parliament's prerogative to empower the corporation to take these actions, and so it is up to the parliament to be assured that the actions are being undertaken as prudently as possible. In that respect, it is a relatively brief but an important bill.

I just want to stress again, as I conclude my remarks, that we have tried as hard as we possibly can to put very narrow parentheses around the operation of this direction for investment activity. The last thing I think the parliament would want to see, or that I would want to see as the current Treasurer, or a government would want to see is a growing or expanding capacity for elected members or ministers of the day to direct investments that Funds SA may or may not make.

If the parliament can be assured that there is very little room for that to occur, that it can only occur under very tight strictures and cannot expand out from those very tight parentheses, then I think we give confidence to all those entities that have invested funds with Funds SA that no harm should be coming to their investments as a result of these sorts of changes. For example, that is a consideration that all of us would have along with another 200,000-plus South Australians who have their superannuation funds invested with Funds SA.

Merely by providing this change, we do not unnecessarily put at risk those important funds as well as other funds around government that are invested through Funds SA. With my customary brief remarks, I conclude my contribution.

The Hon. A. MICHAELS (Enfield—Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (16:51): I also rise to speak in support of this bill, which I think is a testament to the Treasurer and the Premier in taking leadership in this government on this particular issue. Although the former government declared it was too difficult to remove state government funds from Russian assets, our leadership team, the Treasurer and the Premier acted on this issue as a matter of urgency after this parliament was formed.

The commonwealth has already prohibited the import of oil, refined petroleum products, natural gas, coal and other energy products from Russia, and has also prohibited the supply, sale and transfer of certain luxury goods. I am very proud that South Australia is committing to joining with other states and nations in imposing economic sanctions on Russia in response to their acts of aggression against Ukraine.

In the face of international condemnation and tough economic restrictions, Russia continues to pursue its acts of aggression against Ukrainians, ignoring the pleas of the international community, and that is heartbreaking to still see on our TV screens. The resulting deaths of thousands of civilians and millions of people being displaced from their home is a tragedy for the entire globe at this point in time. We are seeing impacts here, obviously, in our energy prices and petrol prices. Beyond that, the humanitarian implications are horrific.

We probably feel a little bit distant here from what is going on over there. We do see it on our TV screens and probably think it is a bit of a movie, but many of us here—and I am looking at the Minister for Police, with his family background, and the Premier, with his family background—know the horrors of being refugees and having our homes invaded. In my own electorate of Enfield there is a significant Afghan population who fled their homes and landed on the safe shores of Australia through, in many cases, refugee camps in Pakistan and detention centres, horrifically, here in Australia as well.

My own story is that I was not born in Adelaide. I was born in London. On the way through, my family were displaced from their own home in a village called Eptakomi in Cyprus. In two weeks, we will be commemorating the 48th anniversary of the invasion of Cyprus by Turkey. That is a moment of great sadness for my family and for more than 30,000 Cypriots who call Australia home. On 20 July 1974, the Turkish military invaded Cyprus and displaced more than 150,000 Greek Cypriots, including my family.

We were forced to jump in the car with my young brothers, Tony and Michael, who were six and eight at the time, in the middle of the night with nothing but the clothes they were wearing, driving across the island to escape gunfire and tanks and the terror of that invasion by Turkish soldiers. As a result of what happened in 1974, one in three Cypriots became refugees, displaced from their homes, forced to relocate in many parts of the world.

I still remember the stories of my brothers at that time. My brother Michael was crying because he lost his little red car. Actually, I think he was so psychologically scarred that the first car he bought was a little red Nissan Xer. I do not know if he realises it was a little bit of scarring that caused him to go that full circle. My eldest brother Tony was crying night after night because he left his pillow at home and said he could not sleep without his pillow.

My mum has told me stories of being pregnant with me during that pretty awful time. My father had to stay behind in Cyprus. With Tony and Michael, she went on a ship to Greece and then caught a plane over to the UK, where my uncles had already moved some years earlier. I am pretty sure that doing that on your own with two little kids and being pregnant was pretty horrific for her as well. I was not born in Eptakomi; I was born in London only a matter of months after that pretty horrific thing happened to my family.

During the course of the invasion and subsequent occupation, many Greek Cypriots lost their lives—in fact, thousands. More than 2,000 Greek Cypriots were shipped off to Turkey as prisoners of war and almost none of them were ever released. There are still 1,500 Greek Cypriots who remain missing. That is 1,500 families who do not know where their loved ones are, who are facing grief day after day, 48 years later, because they do not know where their sons or daughters, or brothers or sisters are buried.

We are hoping against hope that that is resolved in some way, shape or form, but people are losing hope. For the sake of all those Ukrainians who are going through this, I hope they are not living this story 48 years later, that they have not been able to find their loved ones or move back home. Cyprus today does still remain divided between north and south. The European Court of Human Rights has found against the Turkish government for abuses of human rights in the course of its occupation.

The United Nations Security Council, through Resolution 367, universally condemned the Turkish government's declaration of the occupied territory as a federated Turkish state, and I wholeheartedly support that condemnation of my family's island. In its occupation of Cyprus, the Turkish military has sought to ethnically cleanse the occupied territory through the violent expulsion of Greek Cypriots from their homes. They have resettled more than 120,000 mainland Turks onto the northern part of Cyprus—similar to those things we are seeing now with the Russians going into Ukraine. The Turkish government needs to remove its military from Northern Cyprus. There is no other answer to that situation. There is no other answer than for Russia to get out of Ukraine.

My family, along with many other South Australian Cypriot families, had their lives destroyed and we have deep, deep empathy for the Ukrainians who are facing a very similar situation. As it happens, for the first time in 19 years I am going back to Cyprus in only a matter of days. My children are going to Cyprus for the very first time. We are going to attempt to cross the UN Green Line and go and see the village and a very special church to my mother. She is 80 this year, and the reason we are doing it is to make sure that mum knows I have gone and had a look before she passes.

This is a horrific situation that Ukraine is going through. We need to do more to help these people. We need to make sure that if they are coming to Australia they are coming here safely and that they are protected and welcomed here. With this particular bill, it is expressing our views on what is happening over there, and I wholeheartedly support that. I am very proud of our Premier and the Treasurer for taking this forward, and I commend this bill to the house.

The Hon. J.K. SZAKACS (Cheltenham—Minister for Police, Emergency Services and Correctional Services) (17:00): I rise in support of this bill. In doing so, can I first acknowledge and thank the Minister for Small and Family Business for her words, her contribution and for sharing her lived experience. Her life has been shaped in a huge way by an experience of dislocation, an experience of war and an experience of aggression. The minister has spoken at length in this place before on her experience, as has the Minister for Transport and Infrastructure, as have I, about what it is to live and breathe a refugee story. I thank the minister for her words today.

This is a bill that is clearly about a series of key pillars. Most importantly, this is an expression of political leadership on behalf of this government, on behalf of the Treasurer and, most importantly, an expression of political leadership on behalf of our Premier. It is an expression of political leadership, not just in government but in the months leading up to our being fortunate enough to form government. In fact, it was an expression of political leadership in mere days after the invasion of Ukraine by Russian aggressors.

I stood proudly next to the Premier on a number of occasions as a member of this place with eastern European heritage, which I will speak to in a moment. There are few times I have been prouder to be a member of the great Australian Labor Party than seeing the political leadership firsthand of the Premier in respect of his undying, unquestionable and unabridged support for the people of Ukraine through words and actions.

I do note in respect of words of support and actions of support that very much largely the support for the people of Ukraine is entirely bipartisan in this state. I note the support for Ukrainian people, and the strong stance against the Russian invasion has come universally from right across the political spectrum, although not entirely. There have been parts of our mainstream political discourse that have been less than supportive to all initiatives being put forth by governments of the commonwealth and of states, but the suite of responses immediately as a result of the heartbreaking reality of Ukraine were very clear to see.

I congratulate the former Premier, the member for Dunstan, on his efforts in that regard and, as I said, the Premier (member for Croydon) for his immediate political leadership. This is something that has very much formed part of the Premier's leadership when it comes to this state, our political party, and our government's response about refugees, about displaced persons, about those people who would seek to give everything up to simply find safety, to simply find refuge, to simply be able to wake up in the morning without the fear of war or invasion.

The Premier's ongoing support for a more compassionate response from a government perspective to those people seeking refuge in our country is very clear for all to see. The Premier has put his money where his mouth is, and this state, under his leadership, has advocated in our short period of government for a significantly larger humanitarian intake of migration into this country.

The fact is we are a country that is richer for migration, and we are a country that is stronger because of refugees—refugees just like the Minister for Small and Family Business's parents, refugees just like the Hon. Tung Ngo in the other place, refugees just like my father—who gave everything, and continue to give everything of themselves, to make our state, and our country, a fairer and more just place to live.

The Premier's leadership in this regard is worth those comments because in politics leadership matters. Frankly, the only thing worse in politics than standing for something is standing for nothing, and that is not something that the Premier will be accused of doing. In standing in support of this bill, I also do so as someone who has traditionally and fundamentally not been a supporter of divestment when it comes to funds under management or superannuation. I will discuss fundamentally why, in supporting this bill, I think there is a huge difference between the way that this bill is crafted, and of course divestment as a blunt instrument.

The Treasurer spoke in his contribution about the pros and cons, the risks and opportunities of us as a state, and Funds SA as the investor of these funds, taking a stance through our existing ESG framework. Now ESG is something that I have been a very firm advocate for in my time before entering this place. I have been very fortunate to have contributed to both national and international bodies of work in respect of workers' capital, superannuation investment, retirement savings, and the need, the importance, and in fact the duty of investors to consider the environmental, social and governance framework of investing workers' capital, workers' money.

This is workers' money. Superannuation is deferred workers' earnings, and the ESG principles around those are incredibly important. They have been and continue to be part of a significant degree of international work being undertaken by institutional investors, led very proudly by a number of Australian industry superannuation funds; a great partnership of business and trade unions, capital and workers. That ESG work that is being undertaken will lead to better outcomes for business. It will lead to better outcomes for workers who invest their money on trust in these funds.

Most importantly, it will lead to better returns, to better retirement savings, because when we are investing in junk assets, when we are investing in assets with diminishing returns or increasing risk or, for that matter, investing in Russian assets which are, frankly, the combination of all those categories, we compromise the retirement savings of working people and we compromise the ability to have adequate retirement income for working people who have deferred their earnings into superannuation.

Traditionally, I would argue and have argued that divestment is a blunt instrument that does not adequately deal with the systemic issues it seeks to address and that ESG and the collaboration and work around ESG is a better approach. However, when it comes to matters of extraordinary principle, when it comes to matters like the first postwar invasion of a sovereign nation, a liberal democracy, as we are currently seeing in Ukraine by Putin aggression, we need to make account of that.

In supporting this bill, I commend the drafting, the consultation, the work and the leadership shown by Funds SA, by both its executive leadership and the chair of its board, for the pragmatic manner that will absolutely guarantee its sole purpose—that is, the retirement savings of its members. This will guarantee that. I commend Funds SA chief executive, Jo Townsend, and chair of the board, Paul Laband. I have previously worked on a board with Paul Laband and commend his appointment by the former government and his exemplary leadership both in governance and in a technical and strategic approach to investments that very few people have.

I support this bill as someone who has not traditionally supported and who will not continue to support a blunt approach to divestment. The importance of this bill is not to be understated, and it goes to the contemporary understanding of the response. As I said in my opening remarks, the heartfelt support for the Ukrainian people shown by both sides of politics and by South Australians has been profound.

Australian government—the former Morrison government and the current Albanese government, as well as the Marshall Liberal government and the Malinauskas Labor government—has provided support, particularly in the provision of capital and asset support, whether that be Bushmasters repurposed for the resistance of the Ukrainian people or the support recently provided by SA Health and SA Ambulance through the ongoing supply and provision of medical equipment to the civilians of Ukraine as they continue to struggle against the aggression. All these things matter.

They matter because not only do they provide material support for the Ukrainian resistance but they are also a sign of extreme support and extreme solidarity with Ukrainians who live in this country and who live here in South Australia. I want to especially acknowledge and thank the Ukrainian community here in South Australia for their advocacy for the Ukrainian struggle and also for their friendship. I am one of a number of people in this house and this parliament who are fortunate enough to call the Ukrainian community friends, and I am fortunate enough as an Australian man of Hungarian descent to be literally across the border from Ukraine.

At various times in the last century there have been quite enormous boundary changes, as has often happened throughout Europe, and at various times the sovereign territory of Ukraine has been part of the Hungarian border and vice versa. Growing up with the Ukrainian community, none of that mattered. The friendship between the Ukrainian community and the Hungarian community, the Ukrainian community and the Polish community, and the Ukrainian community and the Baltic or Slavic communities was extraordinary.

Ukraine has been at the epicentre of geopolitical struggle for generations. As the borders change and as the aggression from Germany or Russia tends to congregate within the sovereign lands of Ukraine, it continues to strike me and remind me about the resilience of the Ukrainian people—the bravery and also the kindness of the Ukrainian people. It is that kindness and the generosity of the Ukrainian people that I have known growing up in Royal Park next door to Ukrainians, across the road from Ukrainians, two doors down from Ukrainians.

But it is the kindness that we now see in the way that the South Australian Ukrainian community, largely led by the Association of Ukrainians in South Australia and President Frank Fursenko, have generously welcomed Ukrainian displaced people into their homes and our community and how they have supported them in an entirely unabridged manner.

That support has not just been about the expression of the kindness of the Ukrainian community but it has also assisted government, because it is quite a difficult process for governments to support people leaving war-torn countries like Ukraine, in the manner that mostly women and children have, in a culturally appropriate way, and that would not have occurred if it were not for the support and ongoing leadership of the Ukrainian community here in South Australia.

I have spent many hours at the Kozak Bar at the Ukrainian association since being elected to this place. In fact, an event every year which I refuse to miss is Malanka, which in the Ukrainian Julian calendar is the new year celebration. As I have spent time there since the invasion of Ukraine, I have definitely noticed a different feel and a different atmosphere at the Ukrainian association, at the Ukrainian hall and in the Kozak Bar, and that is because it is busy and bustling and full of energy.

As you walk through to the rear of the hall, there is a makeshift clothing and accessory boutique, as it was described to me—all donated goods and all staffed on a volunteer basis—where Ukrainian displaced people can attend and feel as though they are able to continue to support themselves and their families in a manner that recognises their resilience.

But it also acknowledges that most Ukrainians do not consider their current stay here in South Australia as permanent, because the bravery and the resilience of the Ukrainian people continue to dictate and convince me that in the conflict in Ukraine the Ukrainian people will prevail. They will prevail and they will do so with the support of most of the Western world, of liberal democracies, and with South Australia and Australia being able to hold their heads high as global citizens supporting those most in need at the time of their greatest struggle.

I finish on this point because it is the most important and perhaps the most driving factor in my public life, and that is that support in the most important time of need, at the most profound of times, was exactly what welcomed my father here to Australia as a refugee in 1957. As he picked up arms and fled Hungary as part of the Hungarian revolution, the same aggression, the same methodology and the same ideology that he fought, the Ukrainian people now fight as well. That drives me in politics and it commits me to public life in his memory. He passed away in January this year and I know that he would be proud that this parliament is considering every bit of action that it can in standing up to the aggression of Russia.

While I understand and recognise that debate in this house must be in English, as I said on the night after the invasion of Ukraine at the Ukrainian association, I also say this evening: Slava Ukraini.

The Hon. C.J. PICTON (Kaurna—Minister for Health and Wellbeing) (17:21): I rise to support the Superannuation Funds Management Corporation of South Australia (Investment in Russian Assets) Amendment Bill 2022. This is an important piece of legislation and, importantly, one of the first pieces of legislation that we, as a new government, have brought before this parliament. Firstly, this is something that our new Premier is very passionate about, that we should be doing everything possible that we can as a state to support the people of Ukraine in their struggle against Russian invasion that they are facing at the moment.

I think this is a dangerous time for both democracy and for the peace of our world as we have known it for a long time in terms of the dangers we are currently facing. It is important that we do not allow such an invasion and such aggression to go unresponded to by the international community. In doing so, we all have to play our part in making sure that this has the appropriate response. One of the easiest ways that we can do that is by making sure that the funds we hold as a government, in particular superannuation assets held on behalf of public servants in South Australia and other funds that are held by Funds SA, are not invested in Russian assets.

That is a clear and simple proposition, a proposition that was made clear by the former federal Liberal Treasurer, Josh Frydenberg, who called on state governments to take this exact action. It is disappointing that this action was not taken by the previous government, but we are now righting that wrong and making sure that this is action that will be in our statute book to make sure that we are no longer investing in Russian assets.

As other speakers have said, this becomes a difficult area in terms of where you draw the line in relation to what areas should be invested in or not by our funding bodies in South Australia. I would argue that we should not go too far in trying to draw too much of a moral compass over investments that should be made, but there should be some things that are absolute in terms of making clear that our funds should not be invested in particular assets.

One of those, I understand, was a decision made a long time ago in relation to investment in tobacco companies. This is something that has been raised across governments around the country—commonwealth, state and territory—over the previous 10 years, and this is an area of policy I have long had interest in. This is obviously of key importance in the health portfolio, that we should be doing nothing that should be in any way supporting companies whose whole reason for being is to create products that ultimately kill people and cause significant disease and impacts upon our health and hospital systems.

That is very clear, and I think that there is wide support in the community, that we should not be involved in any way as a government in terms of investments, and similarly here. When it comes to Russian investments, I think there is vast, broad community support that we should be taking all action to make sure that we are no longer investing in Russian assets, given the impact we have seen on the Ukrainian people. This is not where our involvement as a state government ends, however.

We have been doing everything possible to make sure that we can provide assistance to the people of Ukraine, whether it is through people who have come here to South Australia or will in the future, or whether it is about supporting and providing goods or assistance to people on the ground in Ukraine. I had the pleasure this week of visiting the Ukrainian association in Hindmarsh in South Australia. We had an excellent project, led by the SA Ambulance Service, to provide 70 of our defibrillators and heart monitoring devices. They are now on their way to Ukraine in a staged way to make sure that we can provide additional support for health services on the ground.

It is an awful thing to say, but it is true, that there has been a huge destruction of hospitals and health facilities in Ukraine by the Russian invasion. The health services available there are very thin on the ground, and devices like those we are donating are very high-tech, in that they not only provide defibrillation that can be used by anybody but they also provide a high level of support for our intensive care paramedics in the work they do in monitoring people's hearts on a day-to-day basis in South Australia.

That is the sort of use that will be useful in a hospital-like situation. The vast majority of these devices we will be sending over will not be used necessarily in ambulances, as they have been in South Australia, but they will be used in hospitals, given the high functionality of these devices. They provide ECG services, they provide blood oxygen level readings, they provide carbon dioxide readings, they provide a whole range of different forms of monitoring that intensive care paramedics can use, and they will be very well used when they are received in Ukraine. It was great to be there the other day when a number of the children from the school and the community had written messages on the boxes that will be sent over.

This is not the first support that SA Health has provided to Ukraine. This comes after five pallet loads of medical devices, equipment and supplies have already been sent over to support as well. We are actively exploring all opportunities of how we can help people on the ground. Of course, that is not where our government involvement ends. As a government, we have made significant donations to the cause. We have also made our commitments in terms of making sure that we can help with resettling people here in South Australia.

It was great to visit and to see the facilities that are being used by the Ukrainian association to help schoolchildren who are now here in Adelaide and who are receiving assistance from the association. I want to thank everybody there for the incredible work they have been doing to provide assistance to families. I also visited to see the sheds they have at the back of the association, where many people have come to donate items of clothing and other key household items that can be used by family members, and that has provided a huge level of support from our community.

We have also heard directly, as a cabinet, from the Ukrainian Ambassador to Australia. The Premier invited him to meet with our cabinet—I believe it was the first state cabinet he has been able to address—to hear directly of the issues being faced on the ground and to hear how welcome the South Australian government's support has been for the fight they are engaged in. We cannot allow this type of aggression, this type of invasion, to go unchecked.

I think it is also very welcome that Australian governments—both the former Morrison government and now the new Albanese government—have also been providing significant assistance. Additional assistance was announced just this week by the Prime Minister upon his visit to Ukraine to see firsthand and to meet with the President of Ukraine and offer Australia's full support for their efforts.

Clearly, we cannot allow this to stand. This bill has an important function of providing that. I thank the Treasurer and the Premier for bringing it to this parliament to make sure that we can give our full support to Ukraine and our full denunciation of the actions of Russia and all its entities in terms of the outrageous attack on democracy and innocent people and, unfortunately, the death of many, many thousands of civilians that we have seen in eastern Europe over the past few months.

Debate adjourned on motion of Mr Odenwalder.


At 17:31 the house adjourned until Tuesday 6 September 2022 at 11:00.


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