Future fund decision 'an insult'

Daily Telegraph, May 2007

  • Australian jobs at risk, union says
  • Government 'doesn't trust' local banks
  • Calls for Treasurer to intervene
A DECISION to give a foreign bank management of the $51 billion future fund will cost Australia $30 million in fees and put thousands of local jobs at risk, a union has warned.

The future fund - set up by the Federal Government last year to cover public service superannuation liabilities - will be run by the Chicago-based Northern Trust using its regional base in Singapore.

Finance Sector Union (FSU) national secretary Paul Schroder today said the decision was an "insult" to the entire local financial services industry.

He said the decision would put 50 jobs at risk immediately "with thousands more to follow" if other government agencies followed the Future fund's lead.

He also accused the Government of "sponsoring the export of high-level jobs to Singapore".

Mr Schroder said the future fund was the largest pool of money ever created in Australia, and moving its management offshore gave the impression the Government didn't trust Australian funds to manage the nation's future ...

Mr Costello said ... "Those banking services were awarded after an independent tender, which came in with the best service at the lower price.

"What they provide in partner with an Australian bank is banking services. They don't manage it, the guardians manage it.

Mr Costello said he was comfortable with an international bank being awarded the tender.

"If they give the best service for the best price and partnered with the best Australian bank, and the tender has been done with all due process, which I believe it to be, and they give the best value for money, of course it is the right decision," he said ...

More: Telegraph

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