Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I rise to speak on the Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2018. The banking royal commission shone a spotlight on significant and appalling corporate misconduct and crime. Some of the conduct would never have been discovered if it had not been for some very brave whistleblowers. Whistleblowers have often had to endure personal loss because they have spoken up for public good, and I acknowledge them. It is never an easy job to do. It was because of those people that Labor called for a banking royal commission—a banking royal commission that, unfortunately, the Prime Minister voted against 26 times.

The bill I speak on today includes significant amendments to the original bill that was introduced in 2017. In my view, the most important amendment the Morrison government has made to this bill is to allow whistleblowers to make a claim for compensation when a corporate entity breaches a duty it owes to the whistleblower to prevent a third person engaging in detrimental conduct towards them. That amendment expands the scope of protection and compensation towards whistleblowers. Sadly, whistleblowers are often left with substantial and ongoing detriment after stepping up to call out bad behaviour. Some never recover from the reprisals meted out to them. Some, unfortunately, can never work again. Another amendment in this bill will ensure that a court can make a compensation order that takes into account the period a person is likely to be without employment if they lose their job for whistleblowing. This bill only goes some way to protecting whistleblowers. In that respect, Labor welcomes the inclusion of a post-implementation review of the amended whistleblower laws that will occur five years after the amendments commence.

Labor's approach is always to make sure that our systems are fair. When people in big organisations break the law, whether they are the CEO or in any other position, they should be held accountable. It is often difficult for these crimes to be detected without someone on the inside speaking up about the behaviour. Whistleblowers are vital to making sure that big organisations are held to account, and whistleblowers must be protected. Labor believes that whistleblowers should be protected but they should also be rewarded. Labor would establish an Australian whistleblower act which would strengthen, expand and, for the first time, consolidate the public and private sector whistleblower regimes under a single set of laws overseen by a new whistleblower authority.

Labor would establish a reward scheme for whistleblowers. Relevant agencies would have discretion to determine the reward within a legislated range of percentages of the penalty imposed against the wrongdoer. There would be a range of factors that would be taken into account, including the degree to which the whistleblower's information led to the imposition of the penalty on the wrong doer, the timeliness in which the disclosure was made, the context of the disclosure and any reprisals and any involvement by the whistleblower in the conduct for which the penalty was imposed. The scheme would be funded out of penalties collected by the government and would only be prospective—that is, it would only apply to disclosures made after the commencement of the scheme.

Labor would establish a whistleblower protection authority to help whistleblowers understand their rights and the disclosure process and to assist them with reprisals and compensation claims. Labor already announced, in the 2017 budget reply speech, a tax-whistleblower protection and reward scheme, among other tax integrity measures. Under that already announced scheme, an individual who highlights tax avoidant behaviour, tax evasion, aggressive tax planning and other tax issues can collect a share of the penalty collected, capped at $250,000, or one per cent of the penalty figure, whichever is the higher. This share would be taxable as ordinary income. The Australian tax office would develop detailed criteria for a test regarding the contribution of an individual leading to court action. Essentially, the test would be whether court action was undertaken due to the information identified by an individual.

Labor has also announced that a Shorten Labor government would deliver a corporate crime task force. Labor would commit $25 million to equip the Commonwealth public prosecutor to respond to recommendations for criminal prosecution which stem from the financial services royal commission. The Abbott-Turnbull-Morrison government has significantly cut funding for the Commonwealth public prosecutor. Over the six years up to 2016-17, staff levels have been reduced by 23 per cent. Funding of their critical work, prosecuting crimes, is forecast to fall by a staggering $11 million over the forward estimates. The big banks have deep pockets, sadly. They spent millions defending themselves before the royal commission. The Commonwealth public prosecutor needs to be well resourced to make sure corporate criminals can be brought to justice. If the Commonwealth public prosecutor can't do its job, then the banking royal commission would have been a complete waste of time. There is no point uncovering wrongdoing if no-one is held accountable.

We know that there has been an awful lot of wrongdoing in the financial sector. The royal commission confirmed many of our worst fears. Again, I'm reminded that the Prime Minister and those opposite voted 26 times over 600 days to not have a banking royal commission. They fought tooth and nail to stop the royal commission from occurring. Thankfully, under the leadership of the opposition leader, we did eventually get a banking royal commission, and a light was shone on the extraordinary crime and corruption occurring in the financial sector. I thank again those brave whistleblowers and the bank victims who came forward to tell their stories—and there were so many we didn't hear from—but I also commend the shadow minister for financial services for her work in this area, particularly her work making sure that some of those victims who didn't get in front of the royal commission do get a chance to tell their stories, to be heard, to be understood.

The royal commission did not have time to hear the very many victims who have been harmed by the financial sector. The commission received more than 10,000 submissions. However, the shadow minister for financial services travelled the country meeting with victims, letting them tell their stories and, importantly, learning from them. We actually held a roundtable in my electorate of Moreton so that the local victims of banking misconduct could come together to tell their stories. They certainly appreciated the opportunity.

It is important, going forward, that we understand what has gone on and how we can improve the system. Labor's policies—to set up a reward scheme, establish a whistleblower protection authority and fund a special prosecutor—are underpinned by the lessons we have learned from those victims who came forward to tell their stories. Again, I thank them for their bravery and for being so candid. It is not always easy telling personal stories, particularly when they are accompanied by such raw emotion, but without their stories we would not know of the appalling misconduct that has been occurring. We would not know that the financial sector was engaging in such widespread misconduct.

Adele Ferguson, one of the first journalists to tell the stories of financial services victims, has described the conduct discovered by the royal commission as amounting to 'institutional theft'. But for 600 days—remember that: 600 days—those opposite, under their various prime ministers, fought to stop a light being shone on the appalling behaviour in the banking sector. For 600 days the Prime Minister, when he was Treasurer and then when he was Prime Minister, refused to allow these victims to have a voice. For 600 days those opposite put the banks before their hardworking customers and those who had been hard done by; 26 times the Prime Minister voted against having a banking royal commission. So we know where this government's priorities lie: they are only interested in helping out the top end of town.

Labor fought for a banking royal commission. Labor will crack down on white-collar crime. Labor will protect and reward the brave Australians who blow the whistle on crime and corruption, including in the banking and financial sectors. Labor will deliver a fair go for all Australians.

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