There is nothing to stop Australian superannuation funds bidding for infrastructure assets such as NSW’s Ausgrid, according to Federal Treasurer, Scott Morrison.
Speaking on radio, Morrison said both he and the Prime Minister, Malcolm Turnbull were frustrated that they were not seeing more of Australia’s $2 trillion superannuation pool being directed towards such transactions.
In doing so, he suggested that industry superannuation funds were sometimes guilty of opting not to invest in particular assets for political reasons rather than on the basis of potential returns.
“There’s nothing to stop them from going along and bidding today. For example, some industry funds won’t allow their funds to be invested in coal shares. Now, that’s got nothing to do with returns necessarily, that’s got to do with politics and their view about those particular issues. It’s not uncommon for super funds to take a position which isn’t just about returns,” Morrison said.
“I think Australians and the Prime Minister and I are frustrated that we’re not seeing more of that $2 trillion in capital which is there in Australian superannuation savings, not lining up on these sorts of transactions.”
“I would like to see them appearing in the next round of transactions,” the Treasurer said.
Discussing the rationale behind some superannuation fund investments, Morrison said that some fund provided “an argument about returns when it suits them, and it’s an argument about politics when it suits them”.
“So, I think all Australians would like to see superannuation funds invest more in our own country, and in our own industries, and they’ve got the opportunity to do that,” he said.
