Interview with Edward Boyd on Sky News Business Now

Subjects: Retirement System Inquiry Hearing, Cbus

E&OE………

Edward Boyd

Well, joining me now is Andrew Bragg, the Liberal Senator for New South Wales. Andrew, thanks for your time. Look, yesterday, you called on Cbus to appear before the Senate Economics Committee, which is tomorrow. Now, apparently, they've now agreed to do that. So, this is obviously a good thing, right? It should increase the level of scrutiny on them.

Senator Bragg

That's right, Ed. Superannuation is the most privileged industry in Australia. I mean, they literally open the door and the money falls in. So, the least they can do is treat people with respect, particularly during a bereavement. So, I'm very pleased that the Cbus super fund and other funds have made themselves available to attend the hearing tomorrow, where we will go through these issues and many others.

Edward Boyd

Yeah, ASIC allegations sound very serious. They claimed Cbus had failed to identify the problem initially, then failed to act on it, and then misled the regulator when it reported that misconduct. I mean, this sounds pretty bad?

Senator Bragg

Well, the Senate established a committee to look at these issues, including on insurance, last year. And so, I'm not surprised that the regulator has taken action. I've asked ASIC about this at Senate Estimates on a number of occasions. But I am pleased to see action being taken. Of course, the proof will be in the eating here and whether they can actually achieve a prosecution. But for the time being, Cbus and the other funds are on notice; that they have to do the right thing by the consumer, because I think so often it is the case that they are only really interested in working hard for their union friends rather than for the actual workers themselves.

Edward Boyd

Yeah, you've been vocal about this. Just explain to us the links between Cbus and the powerful CFMEU union.

Senator Bragg

The CFMEU has been put into administration by the Parliament itself, but the CFMEU continues to own three board seats on the Cbus fund and 21% of the fund overall, in terms of the shares. So, it remains a mystery to me that an organisation that has been put into administration, as in the CFMEU, is allowed to run a major super fund. So, I think this is a major problem. Now, in financial terms, the CFMEU is a major beneficiary of Cbus' largesse. Millions and millions of dollars a year, are given away by Cbus to the CFMEU, so it absolutely stinks.

Edward Boyd

Yeah, and what role do you believe the Cbus and the CFMEU might have played in Australia's housing slow down?

Senator Bragg

Well, I think the major issue here is that the CFMEU, because of their extraordinary building tactics, extraordinarily bad building tactics, have added a 30% premium onto the building of apartments, particularly on the east coast. And that means that it's been harder to get houses built. They've contributed to the slowdown in supply. And that means that the Australian Dream is further and further away for younger Australians. So, the CFMEU have helped create the housing crisis in Australia, aided and abetted by the Labor Party. And so now Labor is looking to CFMEU and Cbus to get help on housing. So, I think that is a twisted priority. And we will be looking to scrutinise that relationship between the CFMEU, Cbus, Wayne Swan and Jim Chalmers at the hearing.

Edward Boyd

Yeah, and do you think ASIC's allegations show that Cbus hasn't really taken ASIC that seriously?

Senator Bragg

Well, I'm not sure Cbus is alone there, but they have to do their best and work hard for the people that give them their money. Now, I'm very concerned, of course, that the Treasurer, Jim Chalmers, has gone out of his way to sign public interest immunity claims to protect Cbus. I think that Cbus should be allowed to do business as a regulated fund, but it shouldn't be getting special favours from the Treasurer. And that seems to be the case. Maybe it has something to do with the relationship between Mr Chalmers and Mr Swan, who is the Chair of the Cbus fund, but also the President of the Labor Party.

Edward Boyd

Yeah, and this dragging out of these death benefit payments, do you think it's just isolated to Cbus, or is it more widespread across other funds in the sector?

Senator Bragg

It's very clear that the super funds are wanting to hang on to the money for as long as possible - even during a bereavement. Some people have been asked to put forward two death certificates at the most difficult time of their lives. So, these have been callous actions. And I'm pleased that the regulator is taking action, because it's just not good enough. Frankly, the super funds as I said; they open the door and the money falls in. And the insurers are part of this whole ecosystem. So they've got to do the right thing by the consumers who are paying these premiums. If someone has passed away, they should be paid very quickly.

Edward Boyd

Liberal Senator Andrew Bragg. Thanks for coming on the show.

[Ends]