AMP chiefs approve of NZ's super plan

By RICHARD BRADDELL

The Government's proposal to build a national superannuation nest egg through a dedicated fund may not be identical to Australia's approach to superannuation but it is to be welcomed, says AMP chief executive Paul Batchelor.

In Wellington yesterday with chairman Stan Wallis for a two-day board meeting, Mr Batchelor said Australia's compulsory superannuation was not the only model New Zealand could adopt, but it did have elements that were common to good retirement systems around the world.

These included a component where people paid for their own retirement, and that happened to be compulsory in Australia. They also included strong growth in private investment over and above what people might achieve through savings in superannuation funds, and a social welfare net.

Mr Batchelor and Mr Wallis have been using their visit to improve familiarity with AMP's New Zealand operations, which return among the highest earnings on equity of any of the company's global assets.

But while the pair were fulsome about the New Zealand business, which is now pioneering e-business initiatives, Mr Wallis was characteristically reticent when asked about governance issues at AMP.

Confirming the reputation as the "fire blanket" when it comes to settling down difficult issues, the elder statesman of Australian business avoided detailing the ructions that resulted in the departure of former chairman Ian Burgess and four directors this year.

"There's been some significant change around the AMP board table. We are very comfortable with the governance of the AMP. We've reviewed those matters that need reviewing and we are endeavouring to focus the board on the future growth and development of the company," he said.

Given New Zealand's importance to the AMP group, would there be any directors appointed to the parent board from this country?

"That's an issue the board regularly come up with," Mr Wallis said. "At the moment, we've made one appointment since I became chairman, but there are no hard and fast rules." We look for the best people to fill the spots around the table," Mr Wallis replied.