Scott Morrison has attacked superannuation funds that choose not to invest in coal assets for political reasons rather than out of concern about their members’ returns.



The treasurer also said he was frustrated that local super funds were not investing more of their capital in Australian assets, saying they now have an opportunity to invest in the New South Wales electricity network, Ausgrid, because he had blocked its sale to Chinese interests.

Speaking on 2GB radio on Monday, Morrison said there should be nothing stopping local superannuation funds from investing in important national assets such as Ausgrid. But he said some funds did not want to invest in assets for political reasons.

“It’s not uncommon for super funds to take a position which isn’t just about returns,” he told 2GB’s Ray Hadley. “Some industry funds, for example, won’t allow their funds to be invested in coal shares. Now that’s got nothing to do with returns necessarily, that’s got to do with politics, and their view about those particular issues.”

Hadley said he hoped some “union-controlled super funds” that would not invest in coal had not become involved in windfarms, where the policy environment is uncertain.

“They may well have, Ray,” Morrison replied. “My simple point is that it’s an argument about returns when it suits them, and it’s an argument about politics when it suits them.”

The treasurer then said he would like to see local superannuation funds appearing in the next round of transactions for Australian assets, including the sale of Ausgrid and S Kidman and Co.

Morrison blocked the sale of Australia’s largest landholder, S Kidman & Co, to a majority Chinese-owned consortium in April because it “may be contrary to the national interest”.

“I think Australians, and the prime minister and I, are frustrated that we’re not seeing more of that $2tn dollars in capital which is there in Australian superannuation savings lining up on these sorts of transactions,” he said on Monday.



“Whether it’s those agricultural stations, or whether in fact it’s the electricity assets like Ausgrid, so there is an opportunity now, I think, for them to engage in that.”

But Peter Collins, the chair of Industry Super Australia – and a former NSW Liberal treasurer – has scorned Morrison’s comments about industry funds.

He told Guardian Australia that Morrison may have confused the track record of industry funds with bank-owned super funds “that have next to no direct investment in infrastructure”.

“Industry super funds not only have the highest allocation to infrastructure assets in Australia but among pension funds globally,” Collins said.

“At June 2015, industry funds had collectively $45bn invested in unlisted assets in Australia including sea ports, roads, airports, water treatment, rail, hospitals and aged care, defence and commercial property.

“These investments were carefully selected, and contributed to the superior risk-adjusted returns industry super funds have consistently provided to members over the last 20 years.

He said industry funds would keep working with state and federal governments to connect savings to infrastructure investment opportunities “where it is in members’ financial interests to do so”.

The NSW premier, Mike Baird, will have to take his bid to partially sell off his state’s electricity grid back to the market after Morrison formally rejected its sale this month citing national security concerns.



Baird said the decision was a “speed bump” but he was frustrated at the federal government’s waiting until the 11th-hour to knock the sale back. “My frustration is that this should have been determined much earlier,” Baird said on Friday.