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

My question is directed to the Minister for Finance, Senator Cormann. In this chamber last year I asked the government why it wouldn't agree to a royal commission into our finance sector. Former Senator Brandis answered by saying that the government had addressed issues of misconduct and that a royal commission was not needed. As we all know, only a few days later the government caved in. Only a few weeks into the inquiry, we are now hearing almost daily about the banks' disgusting conduct against the Australian public. Does the government now recognise that the royal commission was needed and that it failed to address issues of misconduct by banks as it said?

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

I thank Senator Georgiou for that question. It's a matter of public record that the government were of the view that there had been a lot of inquiries, that we knew the areas that needed improvement and that it was time for action. Indeed the Turnbull government has taken a lot of action, including by providing additional powers and resources to ASIC and various other measures. It's also a matter of public record that the situation developed such that it was our judgement that as all the circumstances emerged towards the end of last year, it was in our national interest to change our position, given what was likely to emerge in the context of the parliament at the time. We made a judgement to establish the royal commission. The royal commission is now underway. It's important that we let the royal commission do its work. At the end of the process, the royal commission will present its considered findings, having listened to all of the evidence from all sides, and will make a set of recommendations. The government, as we always do in these sorts of circumstances, will carefully consider what comes out of this process and respond appropriately.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Georgiou, a supplementary question.

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

The royal commission has uncovered cases where bank officials were not only aware of misconduct but also refused to disclose that misconduct, and, worse still, have effectively misled inquiries carried out by this Senate. Our current system allows jail terms to be imposed for such conduct, so why is the government failing its people when not one banking official has been put behind bars?

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

There are very robust law enforcement processes in place for any conduct that is criminal in nature. There are law enforcement processes in place in relation to any breaches of relevant laws. ASIC does have very strong powers. It does have coercive powers. It has got the powers, for all intents and purposes, of a royal commission. The royal commission, of course, does have significant powers itself as well. Whatever findings come out of the royal commission will of course have to be considered and dealt with.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Georgiou, a final supplementary question.

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

Already the findings by the royal commission have shown a need for urgent action. Does the government intend to take immediate action against the banks' conduct, or are you going to protect your banking mates ahead of the Australian public?

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

The government is focused on the public interest. That is what we're focused on. Banks fulfil a very important function in our economy. Banks are facilitators in our economy, and for us to be as successful as we can be we do need strong, profitable, well-regulated, stable banks. From time to time—and there are, of course, examples in recent years—things in all sorts of sectors of the economy go the wrong way. There's bad behaviour and there's bad conduct that needs to be addressed. Sometimes there are systemic issues that need to be addressed in a more systemic way. There is an inquiry, which has not yet presented its findings. The findings are yet to be presented, and the recommendations are yet to be presented. I can assure Senator Georgiou that, when the findings and recommendations of the royal commission into the banks come forward, the government will carefully consider them and will make judgements and decisions focused 100 per cent on the public interest.