Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the still Acting Assistant Treasurer, Senator Cormann. I refer to correspondence from the Acting Assistant Treasurer to the shadow Treasurer which says that the financial systems inquiry is 'clearly not the appropriate vehicle to explore customer complaints about individual planners or firms'. What action is the government actually taking to investigate the fraud perpetrated by the Commonwealth Bank and its impact on consumers?

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

I thank Senator Dastyari for that question. I totally agree: the financial systems inquiry is not the appropriate vehicle to investigate consumer complaints. We have a regulatory system in place. That regulatory system includes ASIC, which does have appropriate processes in place to deal with customer complaints.

The Senate Economics Committee inquiry did raise specific issues about the Commonwealth Bank. Those issues arose, incidentally, in the period of the previous government—2008, 2009, 2010 and beyond. What the government has said is that we want to see the Commonwealth Bank resolve any legitimate outstanding and unresolved issues. Our focus as a government has been on identifying the process most likely to deliver a satisfactory, efficient, effective and swift resolution of any legitimate outstanding and unresolved issues. Mr Ian Narev, the CEO of the Commonwealth Bank, held a press conference last week that went for some period of time. He answered a lot of questions relating to issues raised by the Senate Economics Committee inquiry. That was appropriate. He also announced the Open Advice Review Program, which, again, is appropriate. I believe that review program should be given a chance to work. It needs to be appropriately independent. It needs to be appropriately robust. What the government has said is that we will monitor how that program rolls out.

We have reserved our final judgement on all of the recommendations from the Senate Economics Committee inquiry. In particular, we are reserving our final judgement in relation to recommendation 7. But I believe that, if the Commonwealth Bank can get this right and sort out these problems, that would be the most efficient and effective way to deal with these issues.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the government's pathetic response, if you can call it a response at all, to the damning findings of the Senate's inquiry into the performance of Commonwealth Bank financial advisers—and to the many calls for a royal commission—how can consumers have any confidence that this government will protect them from dodgy financial advice? You are taking no action, Minister!

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

I thank Senator Dastyari for that supplementary question. It would not surprise the senator that I do not agree with his characterisation of the government's response. The government continues to implement good public policy in the financial services space. We continue to focus on finding the most efficient and effective resolution of legitimate outstanding issues for aggrieved Commonwealth Bank customers.

The Labor Party can try to play political games with this as much as they like. We will continue, in an orderly and methodical fashion, to work with the industry to lift professional, ethical and educational standards across the financial advice industry. We will continue to ensure that we have a regulatory system that is not only robust, so that people accessing advice can trust that advice, but also efficient, so that advice is affordable.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given the minister continues to hide his watered-down financial advice regulations from the parliament, I ask again: when will the minister be tabling the regulations? In fact, I will go one step further. I seek leave to table the minister's own regulations on his behalf.

Leave not granted.

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Senator Dastyari, had you completed asking your question?

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I am not going to get an answer anyway so I may as well not finish asking.

Stephen Parry (President) Share this | Link to this | Hansard source

Minister, do you wish to respond to the question as it was asked?

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

I am just a humble immigrant, but I do not really understand how Senator Dastyari can suggest to the Senate that we are hiding something that he is waving around. How can we possibly be hiding something—

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order!

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

that he is waving around? The reason he is waving it around is because we published it—as we must—and we registered it on the official website—

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock, Minister.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

You are frightened of a disallowance—that is what you are frightened of, isn't it?

Senator Conroy interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Conroy, we are not moving forward until we have quiet.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

We don't lose any directions. We don't care.

Stephen Parry (President) Share this | Link to this | Hansard source

You might be surprised.

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

I know that Senator Dastyari and the Labor Party are very keen to continue to do the bidding of the union movement—

Opposition senators interjecting—

to continue to progress the best interest of the union dominated industry funds. We are continuing to go through a proper, orderly and methodical process. We are going through the process that is prescribed in the Legislative Instruments Act—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock. Senator Dastyari, on a point of order.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I asked a very, very clear question and that is, when will the minister table his own regulations?

Stephen Parry (President) Share this | Link to this | Hansard source

The minister has 12 seconds left to answer the question.

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

The government will table those regulations consistent with the requirements in the Legislative Instruments Act 2003. Of course, this is part of going through an orderly process to enable us to talk to all of our friends on the crossbench— (Time expired)