22/05/2007
Finance Minister Nick Minchin and Treasurer Peter Costello must provide all relevant information to the Australian public on the Future Fund’s decision to appoint Northern Trust Corporation as its global custodian.
It is extraordinary that the only bidder without an Australian base has been chosen. Australia has developed a strong and sophisticated funds management industry. While the Future Fund is right to seek the manager that will deliver the best outcomes, it is difficult to understand how no Australian based alternative was competitive with Northern Trust.
Newspaper reports suggesting that the Future Fund ignored the recommendations of its own consultant are disturbing. Senator Minchin should urgently clarify whether these reports are accurate.
In addition, Australians
deserve to be informed whether Northern Trust will be the custodian for the
Education Endowment Fund.
Australians are proud of the funds management industry which has developed
largely off the back of the introduction of compulsory superannuation by the
Hawke Government. The Future Fund’s decision is a slap in the face for
the industry. The Australian people are entitled to know what has been behind
it. Labor will be seeking an explanation from the Future Fund about its decision
in tomorrow’s Senate Estimate hearing.
22 May 2007
