Updated: May 12, 2020
It’s as plain as the nose on your face.
Team ScoMo and his leadership group are wrestling with the incredible task of steering us safely out of a once in a lifetime crisis. An equal level of resources, thinking, modelling and strategising is required at an economic level. I’m here to tell you, it ain’t happening.
All the economic band-aids are hiding a deep wound, but they need stitches and disinfectant before things get septic.
A decade ago, I sat in an office at Lindsay’s car museum with the godfather of industry Super, Bill Kelty. It was a meeting set up by my dear old mate Max Fairchild (RIP). I had an idea. A good one, at least I thought so.
I asked Bill, “Why don’t the industry Super funds invest back into the industry that they represent?” Bill thought that it was a reasonable enough proposition to organise a meeting with Anthony Wamsteker.
We had lunch at Circa. It didn’t go much further. Why? Because the industry was not investable. Does anyone else see the delicious juxtaposition?
HostPlus is one of the bigger Super funds because the hospitality industry is a massive employer and funder. Their annual report boasts $45 billion under management, yet the industry that generates the funds is not ‘worth‘ investing in.
Here’s an idea. Set minimum reinvestment hurdles back into the industry that funds you. I’ll let the ‘geniuses’ work out what that looks like. I’ll let Yosemite Sam and the Hostplussers duke it out with the legislators. Better than average returns with a yin yang hand symbol is a good ad campaign, but a pathetic and meaningless metric. Invest in your business, our industry, before it is too late.
ScoMo, don’t raid our piggy bank anymore. Don’t lean on the banks. Lean on the industry Super funds. It is basic economics and just might save the economy.