Chris Crewther (Dunkley, Liberal Party) Share this | Hansard source

I'm very pleased to speak on this matter of public importance today, as those opposite have been remarkably vocal on the subject and I believe that it's important to set the record straight. It is lucky that we are the ones in government, otherwise the hysteria surrounding the banking and financial services sector might have caused serious damage to the market and Australia's GDP, of which our major banks make up nine per cent, not to mention the risk to everyday Australians' super funds. It is correct when those opposite raise that it has been 601 days since the Labor opposition called for a royal commission. However, it has been 3,666 days since Labor got into government in 2007, in which they had 2,115 days in government to call a royal commission—and they did nothing. Labor's recklessness has also shown their manipulative intentions, taking advantage of people who have been victims of banking misconduct to systematically try to undermine the stability of our financial system to score political points. Perhaps we should be discussing not only the failures of the opposition to protect customers in the banking sector but also the vindictiveness of the opposition and the damage that they are prepared to do to our country and our economy in order to drag down our banks.

As my colleagues before me have explained, the Turnbull coalition government has acted with a comprehensive approach towards financial sector reforms, with substantial actions that work towards furthering the national interest, such as the Murray financial systems inquiry, establishing the Australian Financial Complaints Authority, providing the Australian Securities and Investments Commission with additional resources and powers, introducing a new Banking Executive Accountability Regime, backing the work of the House of Representatives Standing Committee on Economics, increasing competition in the banking sector and much, much more. If this is what the opposition consider a failure, their dogmatic behaviour towards a premature royal commission is worse than failure—and this is the mob who think that they're fit to govern!

To continue, we've introduced further consumer protection reforms, including limiting the up-front commissions that can be paid to advisers for the sale of life insurance, to remove incentives to churn consumers into new life policies that are not in their best interests and ensuring that retail client moneys are protected where financial firms become insolvent. Furthermore, the government is supported by the Reserve Bank of Australia and the Australian Prudential Regulation Authority in ensuring that this royal commission does not delay other actions we are undertaking—the Laker inquiry, BEAR and AFCA. The fact that those opposite believe that a royal commission will solve all the problems in the banking and financial sector simply proves the point that they are unfit and unable to govern.

This royal commission, as implemented by the Turnbull coalition government—not the one pushed for by Labor—is not a court or a compensation scheme. It is cruel, irresponsible and inappropriate of those opposite to imply as much. The royal commission cannot deliver compensation or restitution, and any suggestion that it can or will is providing people with false hope. Furthermore, it would be irresponsible to pre-empt any of the royal commission's findings and recommendations. The Leader of the Opposition and the member for McMahon have simply shown they are willing to use anyone, and to abuse the suffering of victims of banking misconduct, for their own political gratification. Let's compare this to Labor when they were in government, when they had situations like Storm Financial and so many other banking complaints. They didn't take any action, including when the Leader of the Opposition was responsible for these issues.

Let me return again to even more reforms that the Turnbull coalition government is implementing. We are taking action to develop design and distribution obligations, and to develop a product intervention power for ASIC so that ASIC can intervene to prevent consumer harm. We are also introducing, as I noted, a new Banking Executive Accounts Regime, with enhanced powers for APRA to remove and disqualify an executive or director, direct adjustments to remuneration policies, and the enforcement of new expectations on bank conduct with penalties of up to $200 million. We are cracking down on poor practices in the credit card market by introducing rules for how credit is provided and interest is calculated, and making it easier for consumers to cancel cards or reduce credit limits. And we are also looking into super fund governance. We are strengthening and enhancing the corporate whistleblower protection regime as well.

While those opposite have screeched about a banking royal commission, the Turnbull coalition government has been implementing solid reforms to protect consumers and to protect our national economy. It is getting on with the job.

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