Gonski won't fund Gonski, says Penny Wong

FINANCE Minister Penny Wong has defended new Future Fund chairman David Gonski from the opposition..

FINANCE Minister Penny Wong has defended new Future Fund chairman David Gonski after the opposition queried whether he would use the earnings of the fund to bolster his $6.5 billion education reform blueprint.

During a finance and public administration estimates hearing, opposition assistant Treasury spokesman Mathias Cormann also asked whether it was appropriate for Mr Gonski to operate out of an office in the Sydney branch of South African-owned investment Bank Investec.

The fund's managing director, Mark Burgess, confirmed the chairman had retained the office while the organisation operated out of Melbourne. Senator Cormann also asked whether there had been discussions over a special mandate directing the fund's earnings into education, referring to reports that suggested education was giving higher returns.

"To be absolutely clear, absolutely not," Mr Burgess said.

The government commissioned Mr Gonski to conduct the most significant review of the school funding arrangements in almost 40 years, with his reform plan involving increased spending of about $6.5 billion.

"I just wanted to reassure myself that Gonski looking to fund Gonski hasn't already been having internal conversations with the Future Fund on how these things could be better structured," Senator Cormann said. He said last night the Future Fund earned roughly $2.4bn a year.

Senator Wong warned the Liberal senator to be careful because he was impugning the credibility and integrity of a respected businessman.

"You insist on this personal attack; I think it says something about you," she said.

Senator Wong's comments came after healthcare provider Medibank Private said it was in a position to possibly hand over another $300 million special dividend to the government in the 2012-13 financial year, drawing further opposition suspicion.

Earlier, Medibank's managing director George Savvides confirmed the board was considering paying the government a special dividend drawn from capital reserves.

Additional reporting: AAP