Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer to the Prime Minister's previous answer when he said a royal commission into Australia's banking sector would not pay compensation. Given the Prime Minister's close personal knowledge, can Prime Minister confirm that victims of HIH, which was subject to a royal commission, received compensation?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the honourable member for his question. The reality is that a royal commission cannot compensate anyone, and he knows that. I thank him for his gratuitous reference, which he no doubt got some satisfaction out of.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

You're compensating everyone, are you?

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

The member for Rankin has asked his question.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Honourable senators opposite should not insult the intelligence of the Australian people. A royal commission is an inquiry. The only thing a royal commission can do is ask questions—

Mr Brendan O'Connor interjecting—

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

The member for Gorton is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

subpoena documents, examine witnesses and write a report. That is all it can do. It cannot compensate anyone. I was about to say it cannot write a cheque. The only cheques that are written in respect of royal commissions are to the lawyers, and they do very well out of it. A royal commission is designed to inquire into something that has gone wrong, and of course there are plenty of opportunities where that can be done. But what we have here in the financial services sector, in the banking sector, is the most regulated part of our economy, bar none. And we have very powerful regulators. With respect to the banks—the Leader of the Opposition's current target—we have ASIC, with enormous powers that go well beyond those of a royal commission, and you could say the same about APRA and, of course, the Reserve Bank. They are highly regulated.

Of course ASIC is undertaking prosecutions and investigations. It is banning people from being financial advisers. It has all of the levers that it needs to deal with people who have done the wrong thing, and it continues to do it. Of course, the critical thing for people who have had a raw deal from banks or financial advisers is to get some compensation, or to get some recompense or recognition. A royal commission can do none of those things.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

Is this Trio all over again?

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

The member for Rankin is warned.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

So we are focused on action. We want people to get a fair deal. We are focused on action and we are taking action. What the Labor Party is proposing is just another long inquiry.

We talk about ASIC. The ASIC is a tough cop on the financial services beat. It has very, very substantial powers. What is missing at the moment in the construction sector, which employs over a million Australians, is a tough cop on that beat. Well, there was one—the ABCC—and the Labor Party abolished it. What have we seen? We have seen an increase in disputes, a decline in productivity, small businesses being frozen out, cost of projects going up, taxpayers getting ripped off, lawlessness prevailing and over a hundred CFMEU officials before the courts on more than a thousand breaches of industrial law.

So we say what the construction sector needs—it has been demonstrated. We are the tough cop on the beat. Labor took it off—a failure. Now we want to put the tough cop back on the beat in the construction sector. The rule of law must prevail again.

Dr Chalmers interjecting —

Mr Husic interjecting —

Ms O'Neil interjecting —

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

Just before I call the member for Petrie, the member for Rankin has been warned. I remind him to cease interjecting. I would also ask the member for Hotham and the member for Chifley to cease interjecting.