Senate Foreign Affairs, Defence and Trade Legislation Committee, , 1:04:04 to 1:17:18
Witnesses detail their correspondence with Foreign Minister Penny Wong and call for Australian legislation to mirror the stricter standards of the UK and EU.
Topics: Trade policy, Parliamentary privilege
Speakers: Mark Corcoran, Hon Sarah Henderson, Rebecca Bryant, Unknown Speaker
>> So how do you rate what the superanuation sector is doing to prevent exposing members investments to Russia? >> Obviously they're not getting a 10 out
I did actually because I felt bad that u that industry superanuation funds in particular were um cuz that's that's that's your mom and dad investors. Um when I found that IFM was um was uh I actually tried bringing the the uh to say why are you doing this and do you realize it's happening? Do you realize the implications? Uh, they said they would ring me back, but I never got a call back.
>> And who was that chairperson you were trying to contact?
>> Uh, the chairperson. Um,
>> what was his or her name?
>> Her name. Uh, sorry, I've forgotten her
name. >> Okay. Did you correspond with IFM in relation to your
>> I tried ringing her? >> So, I only I tried ringing her. I spoke to her for a minute and she
>> Oh, you did speak to her.
>> I did. Yeah.
>> Yeah. And what did what did the chair say to you?
>> She said that she would ring me back.
>> Right. And you never heard back from her?
>> I never heard back. >> I don't know what she was going to do, but uh I thought it was a a polite thing to do because this issue I had brought it out in the in the media. Uh I did ponder talking before going to the media but I didn't think I would get much response and it turned out to be that
And what do you think that the Australian government should be doing? I mean obviously you've referred to the earlier cause by the then treasurer Josh Fidenberg and also uh Senator Hume when she was in the superrenuation um role. What what should this government be doing to raise the alarm bells in your
>> Uh for a start, we need to follow suit with the EU. We need to implement the third party uh refining and uh terminal bans uh that the EU is has implemented. Uh I'm struggling to see why we haven't done that. Um, we even appear on the uh exemption from paperwork in the EU legislation. And so theoretically uh we could be getting Russian tainted fuel coming to Australia and the EU could import it from Australia to the EU without the required paperwork. U so we need to be um good allies with the EU and the UK. The UK has announced that they're going to do it. Uh, and from indications in the media, they're intending to do that by spring uh, their spring uh, 2026. Um, but we haven't seen that yet. But but that is that's the critical thing. We need to put the onus on importers to uh, obtain guarantee that the product they're buying is free of Russian provenence. That's the absolute critical issue.
>> So your call right now today would be that if investors and other superenuation funds with any direct or indirect investments in Russia whatsoever, including of course Russian crude and terminals, they should immediately devest those investments. um
if they're able to change the behavior so that they're not um importing uh um handling any Russian material, that's probably the best move because at least they're using their their economic clout to uh to get change. Failing that, I
>> So just to explain that in more detail. So there's either devestment or there can you just explain what are the other option is for IFM and other investors
>> that they should either they should try and um change the behavior of the entity that they're involved with so that uh they're not handling Russian tainted product. If they can't do that then they should divest.
>> So in the case of a terminal for instance the terminal should not handle any Russian crime.
>> Yes. They should stop doing that. They
And do you think that's likely given?
>> No.
>> Given given obviously in the case of this terminal in Malaysia, uh it's clearly handling Russian crude.
The surprising thing for me, many surprising things, but one surprising thing is I don't know how many times uh the foreign minister has called on industry to change their behavior and industry including importers, but I've uh in my mind also uh entities that Australian capital is involved in. Uh the call has been made, but the behavior hasn't changed. So it really needs to be underpinned by legislation.
>> so can I put it to you that the Australian government has not done nearly enough to stop these indirect investments?
>> I'm hoping that they're working on it and doing it very soon.
>> And when you say very soon, do you have any confidence or indication that that work is underway? Because we certainly haven't seen it publicly.
>> It's an opaque organization. I don't
know. No, but in terms of the Australian governments,
>> yes, I I don't know if they're doing anything soon, right? >> But I would hope that they are, and I call on them to do that because it's it's um it's iniquitous that our allies in in Europe and the UK are going down a path of uh of sanctioning these third party entities, and we're just sitting
And at the very least, investors in IFM and other superanuation funds with these interests should be warned that they are indirectly supporting perhaps the the uh Russians uh breaches of international law and and uh and that's a pretty
Yeah, I think they um they should at least uh have it brought to their attention in prospectuses.
>> Are you aware of any consultation by the government or as to any legislation in development?
>> No.
>> No, you haven't had any.
>> No, I get very little response. I've I don't know how many times I've uh reported uh issues, concerns, uh viewpoint on the legis on the existing legislation and and what what uh for instance the ASO might do um
>> have you been corresponding with with either the government or any other uh superenuation fund?
>> I I haven't uh >> was it mainly telephone? >> Apart from the IFM u phone call I've cold called her.
>> Yes.
>> Um apart from that I haven't spoken to any of the uh superanuation or investment funds. Um, I've uh uh contacted uh foreign affairs minister, copied in uh home affairs, uh written numerous emails to ASO. I've had some good dealings with border force. >> Mhm. um probably because my name came up in Senate estimates with the commissioner involved and I just wanted to clarify an issue with the commissioner and I did actually speak to the deputy commissioner. but this I'm still waiting for uh some sort of solid action to en ensure compliance under existing legislation. I did outline in my submission uh a number of concerns about uh ways in which uh imports that are coming in at present may not be in compliance with the legislation. But adequate reply as to why I'm wrong. I've been ask been wanting to know why I'm >> Right. Uh but um I still haven't found out.
>> So Mr. Cowan, you wrote to the foreign minister, Minister Wong.
>> Yeah.
>> And did you receive a response from her?
>> I did from from a staff member. Yeah.
>> And what was the nature of that response?
>> It was uh it seemed like it was justification of the status quo in my that that's how I interpret.
>> So your concerns were not acknowledged.
>> It didn't seem to be.
>> And when did you send this correspondence?
I would have first written to uh the foreign minister back in maybe 2023.
>> So you've written a number of different emails and letters. Could we on notice have copies of those that correspondents and also your correspondence to anyone else in foreign affairs and border force or anyone else that you have actually written to raising your concerns as well as uh any responses you've received? It does concern me that there didn't as you Minister Wong's office didn't appear to be taking your concerns seriously. Is that a fair characterization?
No, it it felt like it was a justification of of the existing situation. For example, the um uh the stopping of the direct imports from Russia. Yes, that had an effect, but it's not a not a big effect, but that keeps on being uh pulled out as a as an argument. The number of tankers that are being uh sanctioned, yes, that's true. There's always a butt. We're always, for instance, the tankers. We're late with tankers. We don't align our tank tanker sanctions with other allies like the UK and the EU.
>> So, Minister Wong's office was saying, well, this is what we have done rather than addressing your concerns in relation to the indirect investments which are occurring to support Russian
>> That's that's my impression that I'm it it's it's hard work. And so what would
you say to Minister Wong now? Here you are on the record. Um what would you say needs to be done right now to the foreign minister?
>> Uh I would like from the foreign minister for um the equivalent legislation to um uh to the EU to ban third party uh refining and imports. Uh that's the first step. Second step is uh that we need to strengthen our compliance action. Uh because Dr. Moenko mentioned that uh there hasn't been any uh prosecutions or compliance action. That's my impression as well. I haven't seen any and so but I think that there there's potentially uh compliance failures. Uh I haven't seen any investigation to confirm whether I'm
right or I'm wrong. Thanks, Mr. C. I'll certainly look forward to receiving that further information on notice. Um, Miss Bryant, just briefly to you. Um, has the government sought Mindaroo's advice on what sanctions reforms might be prudent or has Mindoo raised any concerns with the government about gaps it has identified or experienced?
Uh, Senator, no, the government has not sought our views, but that, uh, is not surprising given we're not technical sanctions experts. Um, Dr. Forest, um, one of Minduru's founders, is on the record, um, calling for a closing of this gap. Um, but as far as I'm aware, there's not been any correspondence between Minduru or our founders um, with the government on this issue.
>> All right. Well, look, I will leave our questions at that. Thank you very much for your very valuable evidence and for your appearance today as witnesses. We'd appreciate if responses to questions on notice could be provided to the committee by Friday the 27th of February 2026. And again, thank you very much.
>> Thanks.