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

I ask that general business notice of motion No. 12 standing in my name for today, relating to the banking and financial services industry, be taken as a formal motion.

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

There is no objection.

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

I move:

That—

(a) the Senate notes that:

  (i) confidence and trust in the financial services industry has been shaken by ongoing revelations of scandals, which have resulted in tens of thousands of Australians being ripped off, including:

(A) retirees who have had their retirement savings gutted,

(B) families who have been rorted out of hundreds of thousands of dollars,

(C) small business owners who have lost everything, and

(D) life insurance policy holders who have been denied justice;

  (ii) it is clear from the breadth and scope of the allegations that the problems in this industry go beyond any one bank or type of financial institution,

  (iii) the Australian Labor Party, the Australian Greens, crossbench, Liberal and Nationals parliamentarians have supported a thorough investigation of the culture and practices within the financial services industry through a Royal Commission, which is the only forum with the coercive powers and broad jurisdiction necessary to properly perform this investigation, and

  (iv) Australia has one of the strongest banking systems in the world,

but Australians must have confidence in their banks and financial institutions, making it necessary to sweep away doubt and uncover and deal with unethical behaviour that compromises that confidence;

(b) the Senate calls on the Prime Minister to request His Excellency the Governor-General of the Commonwealth of Australia issue Letters Patent to establish a Royal Commission to inquire into misconduct in the banking and financial services industry; and

(c) this resolution be communicated to the House of Representatives for concurrence.

Senator Lambie interjecting—

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

Senator Lambie, you did not object to the notice being taken as formal?

Senator Lambie interjecting—

Okay. Senator Williams is on his feet; I understand Senator Williams may be moving an amendment. Are you happy to wait till after that, Senator Lambie?

Senator Lambie interjecting—

That is good.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I seek leave to move an amendment to the motion and make a brief statement.

Leave not granted.

Jacqui Lambie (Tasmania, Independent) Share this | Link to this | Hansard source

I seek leave to make a one-minute statement regarding the notice of motion calling on the establishment of a royal commission into banks.

Honourable Senators:

Honourable senators interjecting—

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

Senator Lambie, because there was a bit of interjection, could you repeat what you are seeking leave to do?

Jacqui Lambie (Tasmania, Independent) Share this | Link to this | Hansard source

Mr President, I seek leave to make a short statement regarding the notice of motion calling on the establishment of a royal commission into the banks.

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

Leave has been granted for one minute, Senator Lambie.

Jacqui Lambie (Tasmania, Independent) Share this | Link to this | Hansard source

I stand to support Senator Wong's motion. But when the major parties are receiving political donations to the tune of a combined $500,000 a year from the big four banks, it raises serious concerns about the level of political influence. The terms of reference for a royal commission into the banking industry must include political donations via the banks.

Government senators interjecting—

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

Order on my right!

Jacqui Lambie (Tasmania, Independent) Share this | Link to this | Hansard source

I have received from a reliable source a list of media reports and ASIC notifications of action taken against Australia's major banks for allegedly illegal and unethical practices or practices that are well below community standards. I seek leave to table this comprehensive list for the benefit of the Senate and the Australian people.

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

The indication is that no-one has seen it, Senator Lambie, and leave has been denied.

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

Mr President, I seek leave to make a short statement.

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

Leave is granted for one minute.

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

The Greens will be supporting this motion and, had we seen your amendment, Senator Williams, we probably would have supported that, too. We have been pushing for a royal commission into financial services and misconduct now for over two years. We led on this issue. Unfortunately, we could have dealt with this much earlier if the Labor Party had supported the Greens' motion nearly 12 months ago.

I would like to say this: it is really important. Those senators who sat through the Economics Committee's inquiries into financial misconduct would all be supporting this motion had they seen and heard the evidence that we heard. It is trust that holds our financial system together. That trust have been shattered by a series of financial scandals. We need a commission of inquiry with coercive powers with full resources to get to the bottom of this issue. If the government does not act and they do not have a royal commission, then the Greens will be pushing for a parliamentary commission of inquiry. Parliament must step up and hold the executive to account on this issue. Australians want to see this royal commission. It is absolutely necessary. (Time expired)

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

I will take Senator Williams first.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I seek leave to make a one-minute statement.

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

Leave is granted for one minute.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, for seven years I have pursued a royal commission into white-collar crime in this place. With the amendments I put forward and circulated in the chamber, I want to include many things such as industry super funds and life insurance. I do that on the grounds of what Mr David Murray said just recently in the newspaper. And I will make this point: over the past two years, the industry super funds have paid more than $5.4 million to unions and the ACTU, with a fair portion of that flowing to the Labor Party. In 2014-15, construction industry fund CBUS gave nearly $1 million to the CFMEU which, of course, would have passed it onto the Greens and others, and the Labor Party, as well, for their campaigns. If we are going to have a royal commission into white-collar crime and clean-out the crooks with the Ponzi schemes, the unregistered managed investment schemes et cetera, so we have a good clean financial system for the future—that is what I have been chasing for seven years and that is what I have been rejected to do today.

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

Thank you, Senator Williams. I will go to Senator Culleton.

Rod Culleton (WA, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

Mr President, I also seek leave to move amendments to the motion: that the royal commission be widened to include bank agents, including conduct—

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

Just before you go into the substance: you are seeking leave to amend the motion. Leave is not granted, Senator Culleton. Others are still seeking leave to speak on this matter. I just want to make a statement first.

The Procedure Committee in June 2011 determined that the discovery of formal business was just that: the discovery of formal business, and not a free-range debate. Over a period of time, what has happened is that senators are seeking leave to interrupt formality or the discovery of formal business, where matters are supposed to go through the chamber at a relatively easy pace without debate. We are now getting into a de facto debate, and we are getting other amendments added to this.

Secondly, and it has just been evident in the chamber, it is common practice—and courtesy, but common practice—that if you do have other material that you wish to introduce, such as tabling of other documents, then at least the whips of parties are consulted first, and then you will find that there will be a free flow, and you will have an indication prior. So I will just remind you of those two points, and that might facilitate debate in the chamber and also take us back to what discovery of formal business is all about. There are other places to debate these matters in a more fulsome way.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

I seek leave to make a short statement.

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

Leave is granted for one minute.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

The government does not support a royal commission into the banking and financial services sector, because a royal commission will not benefit consumers or the Australian economy. A royal commission would go over old ground and would delay well-developed and important reforms that will strengthen consumer protections, ensure that malpractice is detected and punished and provide a one-stop shop for consumer complaints. It would also send the signal internationally that the government believes that there are structural problems with our banking and financial system. This would have significant repercussions for confidence, for international investment and for our AAA credit rating.

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

I seek leave to make a short statement.

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

Leave is granted for one minute.

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

I want to begin by apologising to the new senator from Western Australia and explain that the process is that normally we see amendments and so on beforehand. Our decision not to grant leave was not a passing judgement on the nature of the amendments but rather was based on the process and the fact that we had not had the opportunity to see them. I do want to note that the amendment being moved by Senator Williams is nothing more than an attempt to find a way to not support a position that Senator Williams has held in this place and others.

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, a point of order: I do not think it is appropriate that Senator Dastyari can reflect on the motivations of another senator in moving an amendment to a bill.

Mitch Fifield (Victoria, Liberal Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

On an amendment that he's—

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

Exactly.

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

There is no point of order.

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

Senator Williams has been a strong advocate in the past, both publicly and privately, for a royal commission. Yet when a royal commission motion is before him in the Senate he finds a way to make an amendment in which proper notice was not given for the sole reason of finding an excuse and reason to vote against the motion.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, a point of order against what Senator Dastyari claimed: it was circulated at 3.25 pm through the chamber—the amendments, right throughout here.

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

That is not a point of order; that is a clarification. You have made your point, Senator Williams.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I seek leave to make a short statement and perhaps to move an amendment.

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

Leave is granted for one minute.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I just want to pay tribute to the work Senator Williams has done in this area in terms of people who have been ripped off by financial institutions, by banks, and his fearless advocacy for them. I was aware that he was planning to move an amendment. I was not aware of the extent of the amendment until very recently. I strongly support him in terms of the issues he has raised about the failed managed investment schemes and illegalities in the financial planning industry. I have difficulties with respect to the other matters that seem to go much broader than what I thought they would. It is not a criticism of Senator Williams, but in the circumstances I think there are two courses that the chamber could take. Either we could adjourn this until tomorrow, or, alternatively, I could move an amendment to Senator Wong's motion to include reference to failed managed investment schemes and illegalities in the financial planning industry. I will perhaps get your guidance, Mr President, as to whether I can move that this matter be adjourned until tomorrow, and if the chamber's wish is not to do that then I can simply move an amendment to Senator Wong's motion in terms of managed investment schemes.

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

Thank you, Senator Xenophon. You will need to seek leave to take that course of action. So, you are seeking leave to have this matter postponed until tomorrow.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Yes. I seek leave to move a motion that this matter be postponed until tomorrow.

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

Leave is granted.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I move that general business notice of motion No. 12 be postponed until the next day of sitting.

Question agreed to.

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

I will just reiterate again—and I encourage senators to read standing order 66(3) in relation to the taking of formal motions. In short, it says:

A formal motion shall be put and determined without amendment or debate.

I have just got clarification from the Clerk. Because we have actually discovered the motion, which has been postponed until tomorrow, can we take it that in that motion the matter be taken at formal business again for the next day of sitting? That way, we are definitely going to rediscover it and deal with it in the same appropriate manner. Thank you.