Keep your hands, and your politics, off Future Fund, Jim

Under no circumstances should Jim Chalmers, or anyone else, be allowed to gamble with the nation’s economic future by politicising the $230bn Future Fund.

As The Australian’s editorial anticipates, the Treasurer’s move to “modernise” the highly successful sovereign wealth fund, established by Peter Costello, has set alarm bells ringing (“Labor gambles with nation’s future for political points”, 21/11).

The Fund’s purpose was to meet the ballooning public sector superannuation liabilities. It was never intended that it fund the political priorities of any government. The editorial noted the statement of Costello, while still Future Fund chair: “If people start thinking they can take this money and direct it to various purposes of their own, the game would be up; there wouldn’t be any point in continuing to have an investment fund. We invest for return. That’s what we’re here for.”

This encapsulates the Fund’s purpose, which its growth has clearly demonstrated. It is a national asset for national purposes, not a convenient fund for Labor’s political agenda.

Ian Dunlop, Hawks Nest, NSW

It was only a matter of time, before a treasurer started planning a raid on the nation’s Future Fund.

Paul Keating’s old quip, “never get between a premier and a bucket of money”, is very relevant, as Jim Chalmers attempts to influence the Future Fund to support national priorities, such as the transition to net zero, residential housing and infrastructure projects. The government now has the fox in the chicken pen – Greg Combet, the new Future Fund chair – so watch this space. The original chair and creator of the Future Fund, Peter Costello, always stressed the need for the “independence” of the Future Fund. Politicians must be kept away from the investment strategy and locked out of the cash box.

Judith Sloan predicts the Future Fund is heading to “a highway to poor returns” if these new mandates are implemented. Australians must surely be concerned with these moves and motives by Treasurer Chalmers.

Peter Fuhrmann, Watermans Bay, WA

Given that the Future Fund is about investing for our future, it would be hard to think of better priorities than affordable housing, critical infrastructure and clean energy.

The last of these is crucial, as the impacts of climate change are increasingly evident. I for one do not want to leave my children a diminished world and, to that end, am doing what I can to reduce my carbon footprint.

I’ve shifted my super into a fully sustainable fund, reduced my energy use and sourced all my power from renewables. It’s not only been good for the environment, it’s also been good for my bank balance.

Ken Enderby, Concord, NSW

To learn that Labor is targeting the Future Fund to pay for the party’s climate and green energy interests, along with social housing, is a concern. More so when it realises that the combined values of superannuation could pay off the national debt.

I await a decision by the Treasurer that the superannuation funds must invest in government bonds with a guaranteed excellent return on investment. ‘Til they don’t. A massive allocation in the budget to pay future pensions was deleted from the accounts by Paul Keating because it was allocated but there was no real investment to back it. This will happen to the Future Fund, and, dare I say it, the superannuation funds, if governments divert it to their uses.

Tony Hennessy, Casino, NSW

Politicising the Future Fund sounds like another back of the envelope over coffee in a cafe calculation like the now technologically redundant NBN. As Judith Sloan writes, the fund has earned an average of 8.3 per cent per annum.

Thus it has grown from seed capital of $60bn to $230bn today to fund the commonwealth government’s public service pension liabilities. Based on a minimum benchmark return rate of 4 per cent above CPI of, say, 3 per cent, that leaves 1.3 per cent of $230bn ($29.9bn) to throw away on ideological, election-winning projects, in addition to funds available through the Green Energy Finance Corporation, the National Reconstruction Fund and Housing Australia.

Little wonder Treasurer Jim Chalmers has a perpetual grin on his face.

Peter Tredenick, Laidley, Qld