Abbott slaps down dissenter

OPPOSITION leader Tony Abbott has pointedly put down Victorian Liberal MP Kelly O'Dwyer after she questioned his controversial decision to keep Labor's higher superannuation guarantee if a Coalition government inherits it.

By InvestSMART · 23 Nov 2011

By InvestSMART ·
23 Nov 2011

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Ms O'Dwyer asked at yesterday's party room meeting about the process by which the Coalition's previous position was reversed saying it was her understanding such issues should go to the party room.

The reversal was made by the Coalition leadership group in a conference call that included superannuation spokesman Mathias Cormann but not finance spokesman Andrew Robb.

Mr Abbott reminded Ms O'Dwyer she had previously worked for Peter Costello, and suggested she call the former treasurer and ask about how he made decisions.

Mr Abbott said the party room had the right to change policy at any time. But there was no rule and there should be no expectation that every policy decision be brought to the party room.

Some opposition sources later criticised Mr Abbott, saying his treatment of Ms O'Dwyer had been unfair. Two Liberals recalled to The Age that one reason Malcolm Turnbull lost the leadership was that he ignored process. Mr Abbott has previously put MPs offside by bypassing the party room.

Before Ms O'Dwyer's question, NSW Liberal Paul Fletcher asked Mr Abbott where the decision had come from and what was going to be done about the power of union figures in industry super funds, which would be boosted by the increase from 9 per cent to 12 per cent in the guarantee. Mr Abbott, who several times made it clear he did not want to talk about the backflip, said the Coalition would have more to say on superannuation later, but repeated that it would not rescind the higher guarantee. MICHELLE GRATTAN

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Frequently Asked Questions about this Article…

What did Tony Abbott decide about Labor's higher superannuation guarantee?

Tony Abbott told colleagues the Coalition would keep Labor's higher superannuation guarantee if it inherited it. He repeatedly said the Coalition would not rescind the higher guarantee and indicated the party would have more to say on superannuation later.

Why did Victorian MP Kelly O'Dwyer challenge the decision on the superannuation guarantee?

Kelly O'Dwyer questioned the process behind the reversal, saying it was her understanding such issues should go to the party room. Her query prompted Abbott to remind her of her former work for Peter Costello and suggest she ask him about how he made decisions.

How was the Coalition's reversal on the superannuation position made?

The reversal was made by the Coalition leadership group during a conference call. That call included superannuation spokesman Mathias Cormann but did not include finance spokesman Andrew Robb, according to the article.

Do Coalition policy changes have to be approved in the party room?

Abbott said the party room has the right to change policy at any time, but he also said there is no rule—and no expectation—that every policy decision must be brought to the party room. He defended leadership flexibility in making decisions.

How might a rise in the superannuation guarantee affect industry super funds and union influence?

As raised in the article by NSW Liberal Paul Fletcher, increasing the guarantee from 9% to 12% would boost the size of superannuation flows into industry funds, which he said would increase the influence of union figures in those funds.

How did other Liberals react to Abbott's handling of the disagreement?

Some opposition sources criticised Abbott's treatment of Ms O'Dwyer as unfair. Two Liberals recalled that ignoring process was one reason Malcolm Turnbull lost the leadership, and the article notes Abbott has previously upset MPs by bypassing the party room.

Who among senior Coalition figures was mentioned in connection with the decision process?

The article names Mathias Cormann as participating in the leadership conference call that made the reversal, and notes Andrew Robb was not on that call. Peter Costello is mentioned as someone O'Dwyer previously worked for and was suggested by Abbott as a contact on decision-making.

What should everyday investors watch for after this superannuation policy backflip?

Investors should watch for further Coalition statements on superannuation (Abbott said more would be said later) and be aware that the decision to keep a higher 12% guarantee—if implemented—was expected to change industry fund flows and could affect governance dynamics in those funds.