Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. Given statements by the Prime Minister last week that the ongoing financial systems inquiry will advise the government on the recent Senate inquiry recommendation for a royal commission into the Commonwealth Bank, can Senator Cormann confirm to the Senate today that the financial systems inquiry will be providing advice to the government on whether there should be a royal commission held into the Commonwealth Bank?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

That is not what the Prime Minister actually said last week. The Prime Minister said that the report of the Senate economics committee inquiry into the performance of ASIC was a very comprehensive report—indeed, it was over 550 pages—and it made 61 recommendations. The Prime Minister said, as I did, that the government would carefully consider the report and all of the recommendations and provide a full and considered response in due course. We also said that, in relation to the recommendations related to ASIC, there is a financial systems inquiry underway which is assessing the regulatory arrangements in our financial system and also reviewing the role and the performance of ASIC moving forward.

In relation to recommendation 7, which effectively recommended a royal commission into the Commonwealth Bank, the government have said that we are unconvinced that yet another inquiry is the best way to help victims. We are focused on what course of action is most likely to achieve an efficient and effective resolution of any legitimate, outstanding, unresolved issues of aggrieved Commonwealth Bank customers. In our judgement, the open advice review program—which was announced last week by Mr Narev, the CEO of the Commonwealth Bank—offers that opportunity if it is properly implemented in an appropriately independent fashion. However, we do reserve our final judgement. We are monitoring the way the program is implemented and, once the rollout is underway and once we have finalised our consideration of the relevant Senate economics committee inquiry, we will provide a full response to all of the recommendations, including the one that Senator Whish-Wilson refers to. But we remain unconvinced that yet another inquiry is the best way to help victims in the circumstances.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I will take that as a kind of 'yes'. Given that the head of the financial systems inquiry is David Murray, who was CEO of the Commonwealth Bank from 1992 to 2005, does the government acknowledge there is a conflict of interest in Mr Murray being asked to provide advice on the need for a royal commission to which he may be called as a witness or may be potentially implicated in?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Clearly Senator Whish-Wilson had pre-written his supplementary question and did not take into account the answer I gave. Mr Murray and the financial systems inquiry are not, never have been and never will be asked to provide advice to the government on whether or not there should be a royal commission into the Commonwealth Bank.

David Murray, who is a highly-regarded Australian, as you have just indicated, has not been working for the Commonwealth Bank for about nine years now. He is doing an important job for the government in chairing the financial systems inquiry which is looking at, among other things, regulatory arrangements in our financial system. Obviously, the future and ongoing role of ASIC and the performance of ASIC in that context as a regulator in our financial system is an important part of that scope. We have full confidence in Mr Murray's capacity to perform that job with distinction.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Considering comments by the Prime Minister in relation to the CBA matter that, 'I don't want to overdo the reviews because in the end, what people expect from government is appropriate action not endless study, particularly studies which don't necessarily lead to outcomes,' why won't the government heed the call of the Senate inquiry, including from the government's own Senator Williams, and immediately move to establish a royal commission into the Commonwealth Bank scandal or into broader white-collar crime?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I am pleased to advise the Senate that, on this occasion, Senator Whish-Wilson did appropriately quote the Prime Minister. Indeed, we are not interested in endless further inquiries; we are interested in action. We are interested in how we can ensure that victims with unresolved, legitimate, outstanding issues can achieve resolution of their issues in the most efficient and effective way. We believe that the announcement by CBA of the open advice review program does offer that opportunity. But we reserve judgement. We will monitor the way that is being implemented, and we expect that it is going to be implemented in an appropriately independent and professional way. Subject to how that all plays out, we do not believe that a royal commission, which would take a couple of years and cost a lot of money, is the best way to deal with this particular circumstance.