HOSTPLUS and Club Super have jointly announced that they are in discussions in relation to a merger of the two superannuation funds.

The funds have entered into a memorandum of understanding to formally pursue discussions and undertake a comprehensive due diligence process, which is anticipated to lead to the two funds’ trustees signing a successor fund transfer deed approving the merger of Hostplus and Club Super.

As industry funds with a common member profit heritage and history, and focus on serving the hospitality, tourism, recreation and sporting sectors, both funds believe there is a strong alignment between the organisations which when combined are expected to deliver greater benefits and outcomes for their members.

Hostplus’ chief executive, David Elia, said today that this due diligence phase would allow both funds to more formally evaluate the merger proposal.

“We look forward to working with Club Super through this phase during which our funds’ members and their employers will continue to receive the same high-quality service and outcomes they have come to expect of us," he said.

“Along with Hostplus, we are keen to explore how a merger of our funds, based on shared values, our all profit to member philosophy and focus and track record in serving the hospitality, clubs and allied sectors, would better serve our members and stakeholders both here in Queensland and nationally”, Club Super chair, Sharron Caddie said.

Both funds confirmed that their respective members and employers will be kept informed of the outcomes of the funds’ discussions once the opportunity has been fully explored.

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the Prime Minister’s announcement that the Australian Government will take a fresh look at reinvigorating our workplace relations system.

“The Federal Government’s intention to review the workplace relations system is encouraging for the small business sector,” Ms Carnell said.

“The overwhelming view among small businesses is the legislation is far too complicated, particularly for those with less than 20 employees and no expert HR or legal departments.

 “We have already identified a number of simple steps to tackle the overly complex industrial relations system for small businesses that would make a real difference to the sector," she said.

“A key priority should be a review of the Small Business Fair Dismissal Code, to ensure there are adequate provisions to protect small business employers from an unfair dismissal claim when they have made every effort to do the right thing.

“We know that the current protections in place are not doing the job that was originally intended," Ms Carnell said.

“If this and other recommendations are implemented, it will level the playing field for small business who want to do the right thing and empower the Fair Work Ombudsman to deal with businesses that don’t.

“A clear and simple workplace relations system would be more user-friendly and give small business the boost in confidence they need to hire workers.  

 “We look forward to working closely with Attorney-General and Minister for Industrial Relations Christian Porter on the much-needed simplification of Australia’s workplace relations."

www.asbfeo.gov.au

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“THE official interest rates for the second month running is to be welcomed and we urge lenders to fully share the reduction, especially for home loan and small business customers,” Master Builders Australia’s chief economist Shane Garrett said. 

“However, interest rates are only one ingredient of the economic growth recipe and progress must also be made in other areas to get the economy growing more quickly.

“We need to see the Parliament pass the Government’s full program of income tax cuts to put more money in people’s pockets and the confidence to spend,” Mr Garrett said. 

“Fast tracking the construction of infrastructure projects would provide a kick start for growth and boost confidence in the construction sector and the wider economy. 

“Small firms are the lifeblood of the Australian economy. To complement the rate cut the Government should continue loosening the burden of red tape and regulation, allowing small business to operate more freely,” Mr Garrett said.

www.masterbuilders.com.au

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INDUSTRY superannuation funds stand ready to work with the Federal Government to drive productivity and help solve the nation’s energy crisis.

In a new discussion paper, Modernising electricity sectors, Industry Super Australia chief economist Stephen Anthony highlighted some of the challenges facing Australia’s energy network, and makes the case for industry fund intervention.

“While the climate debate rages on, Australia’s ageing energy infrastructure continues to fall further and further behind the rest of the world. Much of the heavy industry has already gone, costing jobs and driving power costs up even further,” Mr Anthony said.

“The failure to achieve a consensus framework for emissions abatement, coupled with the subsidisation of renewables has seen wholesale prices triple over the decade and volatility reach stratospheric levels.

“If this policy inertia continues, regulatory uncertainty will continue to rise, allowing some investors to capitalise on price movements and maximise public subsidies to game the market. Something has to give and this is where industry super funds come in.”

Industry Super Australia chair Greg Combet said industry super funds have the purpose and the capital to partner with government to drive productivity and develop long-term solutions to otherwise intractable economic problems.

“In the event of continued stand-offs on energy policy making, far-sighted industry super funds can play a role,” Mr Combet said.

“With the best interests of their members at heart, industry super funds have the purpose, and the capital, to work with the government to develop a long-term solution as investment partners.”

Mr Anthony said the consideration for investors and government shouldn’t be one of renewables versus coal, but what the right mix of technology is now, and into the future.

“There is no single simple solution to Australia’s energy trilemma right now. There is no reason to exclude any of the major technological contenders – solar, wind, combined-cycle gas, pumped and even nuclear – from the current or future energy mix,” he said.

“The existing fleet of baseload generators need replacing, while there must be an agreed pathway to progressively phase out coal-fired generators.

“This is where industry funds can contribute. They can pre-empt future government decision-making to fill potholes in grids, replace existing network capacity, or develop innovative financial products that better helps to manage risks both here and overseas,” he said.

“Industry funds stand ready to help – but if action isn’t taken, we risk failing generations of Australians.”

The report can be accessed at https://www.industrysuper.com/assets/deb18ac10c/Modernising-Electricity-Sectors.pdf

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