Deborah O'Neill (NSW, Australian Labor Party, Shadow Assistant Minister for Innovation) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Cormann. Can the minister confirm that the decision to hold a royal commission into the banks, 26 times after the government voted against one, was made by former Prime Minister Turnbull? Can the minister further confirm media reports quoting government sources that the then Treasurer and now Prime Minister, Mr Morrison, was—and I quote—'the last hold-out'?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I reject the premise of the question. The decision to hold a royal commission was made by the government following usual government processes.

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

Senator O'Neill, a supplementary question.

Deborah O'Neill (NSW, Australian Labor Party, Shadow Assistant Minister for Innovation) Share this | Link to this | Hansard source

The same media report states that sources close to Mr Morrison confirmed he issued warnings of 'reputational damage' to the government if they backflipped and supported a royal commission. Why was Mr Morrison more concerned with the government's reputation than with protecting the victims of banking misconduct?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I completely reject the assertion in that question. It was Prime Minister Morrison who as Treasurer introduced the Banking Executive Accountability Regime, which, of course, is designed to hold banking executives to account and which was absolutely supported, positively supported, by the royal commissioner. In fact, he wants us to expand it into other areas. It was Scott Morrison as the Treasurer who led the charge, alongside Kelly O'Dwyer as the relevant minister at the time, when it came to the establishment of the Australian Financial Complaints Authority. It was Scott Morrison as the Treasurer who made sure that ASIC and APRA had more resources and more power so that they could do their job effectively. Indeed, it was Scott Morrison as the Treasurer who led the charge when it came to putting the terms of reference together for the banking royal commission and, indeed, when it came to the decision-making in relation to the appointment of the royal commissioner. It is Scott Morrison now, as Prime Minister, who will lead the charge in our response. (Time expired)

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

Senator O'Neill, a final supplementary question.

Deborah O'Neill (NSW, Australian Labor Party, Shadow Assistant Minister for Innovation) Share this | Link to this | Hansard source

Can the minister confirm that the last hold-out, Mr Morrison, only backflipped on a royal commission after the banks wrote and requested one? Why won't this bank-loving and out-of-touch Mr Morrison immediately act to implement the royal commission's recommendations by recalling parliament in March?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Firstly, unlike the Labor Party, we are taking action on all 76 recommendations now. In fact, we have legislation in the Senate this week which, courtesy of the Greens, we haven't been able to deal with over the last two hours.

We have legislation to increase penalties on white-collar crime, to increase the powers for APRA. Indeed, we have legislation, which we would like to see the Labor Party support, to abolish exit fees from superannuation accounts for those Australians saving for their retirement. But guess what? I would be interested to see how the Labor Party acts on that. Are you going to act in the interests of Australians saving for their retirement or are you going to act in the interests of those union-dominated industry funds?

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

Order! Senator Cormann. Senator Wong, on a point of order.

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

I know they want to talk about everything else but themselves, but the question was: why won't he recall parliament?

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

The question, Senator Wong, also did have an opening statement referring to the actions of the then Treasurer. I'll draw the minister's attention to that. He can be directly relevant to any part of the question. Senator Cormann.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

The core response is: the government is still taking action. We're still waiting on the response from the Labor Party. We are taking action, including through legislation. I tell you why we're not going to recall the parliament. It's because—

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

A part-time government!

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

No. I'll tell you why. Because as the Law Council rightly pointed out—

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

Order! Senator Cormann. Time for the answer has expired.