Industry funds have earmarked more than $28 billion to expand their infrastructure and property holdings and to invest in Australian businesses in an effort to drive jobs growth.
“Our funds have been helping members through the tough times and we stand ready to help get them safely back to work and the economy growing again,” said Industry Super Australia (ISA) chair Greg Combet. “We’ve got significant funds available and plans to provide capital to solid Australian businesses and bring forward large investments in major projects and essential infrastructure that will create new jobs and sustain many more.”
Mathew Linden, ISA deputy CEO, said there’s a “positive role” for industry super funds to play by helping states fast track major projects to supercharge the economic recovery.
“I don’t think we can really swing a cat in Canberra without hitting up a building that’s owned by industry super fund members, whether it be through a fund in particular or whether it be through the property trust,” CEO Bernie Dean told Parliament. “There’s going to be an expansion, I think, of member-owned property throughout Australia over the next couple of years – and not just an expansion but probably a bit more awareness among members.”
The money will fund solar farms at Darwin airport, terminal expansions at other airports, rail upgrades, shopping centres, and other commercial and residential developments. The International Renewable Energy Agency (IRENA) has suggested that massive spending on infrastructure and renewables could be one way out of the oncoming recession.
With the confidence of stable superannuation policy settings and partnerships with state and federal governments these infrastructure commitments could be just the start,” ISA said in a release. “Not only do these infrastructure holdings generate jobs – but means that workers, through their super funds, get the profits from the roads, buildings, airports and seaports they built and use daily.”
Since the start of the crisis, industry funds have also participated in capital raisings for NAB, Reece Plumbing and Ramsay Healthcare.
“We’re determined to play a key role in helping Australia’s economic rebuild, because that gets some members working again and delivers long-term returns for all,” Mr Combet said.
The industry funds have recently drawn the ire of the government for their investments in illiquid assets. Industry super funds own $80 billion in Australian infrastructure and property assets. ISA projects that one year’s capital expenditure on infrastructure created or supported 46,000 jobs.
