Superannuation Funds Management Corporation of South Australia (Investment in Russian Assets) Amendment Bill – Second Reading Speech

Tuesday 6 September 2022 

S.E. ANDREWS (Gibson) (16:35): I rise to speak in support of Superannuation Funds Management Corporation of South Australia (Investment in Russian Assets) Amendment Bill 2022. I am proud of all the work the union movement has achieved, particularly the eight-hour day, work health and safety legislation and compulsory superannuation, which was created by workers for workers. It is about fairness and a decent standard of living, but any investment into Russian assets as a part of this is unconscionable. 

The events in Ukraine perpetrated by Russian aggression have resulted in the loss of thousands of lives and a humanitarian crisis, with approximately 7.1 million people internally displaced since the invasion of Ukraine, and over five million have fled to neighbouring countries, according to the United Nations. In addition, as of late April 2022, Poland has taken in almost three million refugees alone from Ukraine, an incredible number of people to support. 

Most countries around the world have imposed tough economic sanctions on Russia to respond to their acts of aggression, banning new investments in Russia, freezing the assets of Russian banks and sanctioning Russian financial institutions. In addition, Australia has prohibited the import of oil, refined petroleum products, natural gas, coal and other energy products from Russia as well as prohibiting the sale or transfer of certain luxury goods. 

The current war in Ukraine and resulting Russian sanctions highlighted that the current act does not have a mechanism by which Funds SA can be directed by the government to divest Russian investments. The opposition, during the 2022 state election campaign committed to amending the Superannuation Funds Management Corporation of South Australia Act 1995 to enable ministerial direction for the removal of state government funds from Russian assets. 

It is after a lifetime of work that all Australians deserve a comfortable retirement. For most people, their superannuation will play an important part in helping them secure a modest lifestyle. They have worked so hard, committed so much, and their super investments should be ones they are comfortable with. Today, almost every worker has the right to their own superannuation account, but that right would not exist had it not been for the campaigns fought by union members in the 1970s and 1980s. 

Superannuation initially was deeply unfair, with fewer than one in four women and blue-collar workers having an account. High income earners, such as permanent public servants and full-time white-collar workers, were more likely to have superannuation. But, thanks to the campaigning and hard work of union members, a system of compulsory superannuation began operating in 1992. Unions also played a part in establishing industry funds. These are low-cost profit-to-member superannuation funds dedicated to putting the interests of members first. 

Today, approximately five million Australian workers are members of industry funds, and these funds manage hundreds of billions of dollars of workers' contributions. Funds SA is the primary investment facilitator for public sector super funds. Funds SA has already divested itself of a significant volume of Russian funds but, given the ongoing sanctions against Russia, divesting assets without incurring significant losses will take time. 

There is a clear need to enable a direction by the minister to Funds SA for the divestment of remaining Russian assets. This bill addresses these concerns, and the amendments contained in the bill enable the divestment to occur in a sensible manner that specifically targets Russian-held investments. The amendments contained in this bill enable us, as a government, to do what the public expect of us. Whilst in opposition, leader Peter Malinauskas vowed that a Labor government would act swiftly to remove state government funds from Russian investment, stating: 

We know this is the right thing to do. It is unconscionable for state government funds and public sector workers' superannuation to be invested in Russian assets. 

The amendments contained in this bill will enable this to occur in a sensible manner that specifically targets Russian-held investments and will enable a direction by the minister for the divestment of Russian assets. I commend this amendment bill to the house.