Just because particular unions may oppose the sale of public assets should not preclude industry funds from investing in those assets if the numbers add up, according to former Federal Labor minister, Nick Sherry.
Speaking during a panel session at the Conference of Major Super Funds (CMSF), Sherry backed a call by industry funds stalwart, Garry Weaven for super funds to be active in social infrastructure investment, including in residential housing stock.
Sherry said that union officials who sat on the boards of superannuation funds needed to leave their union hats at the door wye it came to making investment decisions and that included investments in projects which had been opposed by unions.
Weaven said that while he believed the purpose of the superannuation system was to provide for peoples' retirements, it's scale was now such that the superannuation industry had a responsibility to address some of the major issues which had been the subject of recent superannuation policy debate, including residential housing affordability.
Further he said that the sole purpose test did not need to be seen as an inhibitor in circumstances where it was possible to generate a reasonable investment return.
"And if we don't do something about addressing housing then it becomes a major issue," Weaven said.
Sherry said it had always been open to make investment decisions reflecting the views of their members and this should continue to be the case.
