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

My question is to the Minister for Finance, Senator Cormann. Minister, many Australians and small businesses are continually facing undue hardships placed on them from the banking sector. ASIC and the Small Business and Family Enterprise Ombudsman have indicated publicly they do not believe the banks are complying with the legislative requirements of the unfair contracts act, which came into force on 12 November 2016. What is the government doing to enforce their compliance?

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

I thank Senator Hanson for that question. The government, of course, is taking action when others are proposing that we should have yet another inquiry in the form of a banking royal commission. What the government has done is boosted the resources of ASIC; boosted the powers of ASIC. We forced the bank CEOs to appear on a regular basis in front of a relevant parliamentary committee to be accountable to the public in relation to their performance. You mentioned a series of reviews that have been taking place in recent times. This of course builds on the very substantial financial systems inquiry which this government conducted, which also identified a whole series of necessary improvements. It builds on work that was done all the way back by Senator Bushby as chair of the banking inquiry a few years back. Over the last few years, Senator Hanson, this parliament, through its committees, has identified a whole range of improvements, both in terms of financial system regulation and in terms of the powers and the resources that need to be available to ASIC in particular. The government has acted and responded to those recommendations as appropriate. We are always open to talking about how further improvements can be made, but we do not believe that the right way forward is yet another inquiry.

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

Senator Hanson, a supplementary question.

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

Minister, you are correct, there have been many inquiries. In fact, there have been 17 inquiries into the banks since the GFC—that is, since 2008. But why aren't you implementing the recommendations that have come out of the many reports coming from them?

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

As I indicated in my answer to the first question, the government is implementing the recommendations that have been made, as appropriate. Obviously, whenever you are presented with recommendations, as a government, you consider the recommendations that have been made and how best to achieve the best possible outcome, and that is what the government is doing. We believe that the financial system regulation is in much better shape today as a result of the decisions that this government has made. We believe that ASIC is much better resourced now and has much more appropriate powers to deal with the sorts of issues that Senator Hanson raised.

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

Senator Hanson, a final supplementary question.

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

Is it not true that the banks are self-regulated, set their own code, and the government is reluctant to implement legislation to make them comply?

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

It is most definitely not true that the banks are self-regulated. The banks, and indeed the financial services sector as a whole, are very heavily regulated and very heavily subject to Commonwealth regulation, which is, of course, entirely appropriate. That regulation is enforced by a series of regulatory bodies, not least of which is the Reserve Bank, not least of which is the Australian Prudential Regulation Authority and not least of which is ASIC, which you have mentioned. There is a very high level of regulation when it comes to the banking system here in Australia. That is appropriate. It is always also appropriate for us as policymakers to reflect on how that regulation can be further improved. That is a process that has been ongoing and will continue to be ongoing in the future.