Statutory fund management – summary of feedback
Executive summary of feedback from the parties who responded to the May 2021 consultation paper on the proposal to optimise the investment of a range of statutory funds.
In May 2021, the Northern Territory Government approved the release of a consultation paper seeking input and feedback on a proposal to optimise the investment of a range of statutory funds.
On this page is an executive summary of feedback from the parties who responded to this paper and did not request confidentiality. The feedback of multiple parties are not reflected in the summary due to their request for confidentiality, although these responses generally supported the proposed reforms:
- The majority of stakeholders directly impacted by the proposed reforms responded positively to the consultation paper, and provided written support for the reforms.
- Representatives of the Mines Branch in the Department of Industry, Tourism and Trade responded positively to the proposal relating to their management of the Mine Remediation Fund (MRF) and the ability for that fund to grow in line with investment returns.
- The Extractive Industry Association of the Northern Territory provided a submission in support of the proposed reforms, suggesting they will be ‘more efficient and attract opportunities for better returns’. The Association also suggested steps should be taken to ensure any investment returns of the MRF are added to that fund. This is an integral part of the proposed reforms.
- The submission from the Association of Mining and Exploration Companies was supportive of the proposed reforms.
- The submission from the Agent’s Licensing Fidelity Guarantee Fund supported the concept of a single funds management framework.
- The submission from the Legal Practitioners Fidelity Fund supported the concept of a single funds management framework. The submission notes the potential benefits of lower investment management fees and better investment returns.
- The external members of the Northern Territory Treasury Corporation Advisory Board (which is responsible for the investment of the Conditions of Service Reserve), were consulted on the proposed reforms. Overall, they supported the proposed changes and agreed that the targeted benefits are achievable and should achieve the financial benefits and governance improvements that are being sought.
- NT Build was not supportive of the proposed reforms. This is because contributions to that fund are made by developers in the construction industry (rather than government) to fund portable long service leave benefits for workers in the construction industry and in its view, it is already managing that money optimally. Three unions that have members in the construction industry provided letters in support of the NT Build submission.
- The Nominal Insurer also does not support being part of the reforms. Its fund balances have largely been held in term deposits and not in the financial market, so have not benefited from the strong investment returns across the broader government portfolio.