Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. The government is reported to be considering directing ASIC to conduct an inquiry into the banking and financial services industry. Can the Prime Minister confirm that ASIC cannot inquire into its own role or APRA's role, ASIC cannot hold an inquiry in public and ASIC can only investigate individual cases, where a royal commission examines systemic issues? When will the Prime Minister stop appeasing and apologising for the banks and launch a royal commission into the Australian banking sector?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the Prime Minister for the opportunity to respond to the Leader of the Opposition's question.

Ms Butler interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Griffith will leave under 94(a).

The member for Griffith then left the chamber.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The government takes very seriously the issues affecting banks and financial system customers, and for that very reason, when we were in opposition, we proposed a financial system inquiry. That is what we did in November 2010. And in opposition we produced terms of reference for that financial system inquiry, which I table. In that financial system inquiry, we set out to ensure that, when we were elected to government, we could go into all the matters that were relevant to ensuring that our banking and financial system provided the bedrock it needed to for our Australian economy and addressed the consumer and other protection and powers issues that it needed to to ensure that that could take place.

It was opposed by those opposite when we put it forward in opposition. Treasury even recommended it to those opposite, and they opposed it. They refused to act on putting in place a financial system inquiry. So, when we came to government, we did that. We initiated the Murray review, and it produced its report. And, when it produced its report, did we hear from those opposite that there needed to be a royal commission? No, we did not. And, when it was proposed in the Senate that there should be a royal commission into the banking and financial system by the Greens, what did they do? They voted against it.

I will tell you what happened the month after that, Mr Speaker. This government initiated a capability review into ASIC. Those opposite do not seem to understand that ASIC has the powers and the authority to prosecute and investigate, including holding public hearings, dealing with things in public, and having general matters that it can investigate as well as specific matters. We initiated the capability review into ASIC to ensure that it has the proper resources and powers to do its job.

Those opposite, in their economic statement before the last election, when they were in government, placed an efficiency dividend on ASIC, cutting some $30 million from ASIC. It was done by the now shadow Treasurer when he was Treasurer. He would remember that. Now they come to this place, a month or two or however long it is out from an election, and they develop an interest in the banking and financial system. Well, this government has been working on it from day one. Those opposite have opposed it every step of the way. It is rank populism.

Dr Chalmers interjecting—

Mr Albanese interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Rankin will cease interjecting, as will the member for Grayndler. The member for Grayndler will cease interjecting!