PREMIER Colin Barnett believes that appointing an independent person to review the future of the state government employees’ superannuation fund GESB was a key factor in ending an impasse that had gone on for nearly two years.
PREMIER Colin Barnett believes that appointing an independent person to review the future of the state government employees’ superannuation fund GESB was a key factor in ending an impasse that had gone on for nearly two years.
Mr Barnett said Rod Whithear, a superannuation specialist seconded to Western Australia from the Commonwealth to review the proposed mutualisation of the $9 billion fund, had played a significant role in deciding to keep GESB under state control.
GESB and the Department of Treasury and Finance have been at odds over the proposed transition for at least two years.
It is understood Under-Treasurer Tim Marney recommended to former Labor treasurer Eric Ripper to stop the mutualisation just two days before the planned date to implement this reform, July 1 2008.
Since then, the two arms of government have been at loggerheads, failing to find a formula for the mutualisation that suited both sides.
In the end, former Liberal treasurer Troy Buswell appointed Mr Whithear and, in April, announced that GESB would not be mutualised.
The state government has created a steering committee to oversee the implementation of numerous recommendations that Mr Whithear made in his report ‘Putting Members First’.
The report was provided to the government in February and was used as the basis to end the mutualisation in April.
However, most of the recommendations have remained secret because the report has been kept confidential.
WA Business News has obtained a copy of the report, which has otherwise only been seen by state parliamentary leaders and representatives of GESB, including the board of its proposed mutualised entity.
Most of those board members quit in February after seeing a draft of the Whithear report.
Mr Barnett said the report was not released because it contained significant commercial in-confidence data, which may identify third parties.
“As the government progresses the implementation of the report’s recommendations, the merits of releasing the report may be considered if commercial sensitivities can be appropriately managed,” he said in a statement.
Included in the report are recommendations to keep GESB state controlled, offer choice to members, outsource superannuation administration, and wind-up financial planning arm GESB Wealth Management.
Mr Whithear also suggests that provisions be made for consultation with the state government regarding the purpose and size of reserves and a power of veto be given to the treasurer.
Similarly, Mr Whithear recommends that a provision be made for the state treasurer’s agreement on the contribution and recoupment rates required of departments and agencies.
A further recommendation is that the advertising budget be redirected to inform small account holders of their right to transfer funds out of GESB once a mechanism to do so is put in place.
