Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

My question is to the Minister for Government Services, Senator Reynolds. In approving an almost $2 billion settlement for victims of the coalition government's unlawful robodebt scheme, Justice Murphy characterised it as 'a shameful chapter in the administration of the Commonwealth social security system and a massive failure of public administration'. Why was this shameful chapter designed by Mr Morrison as social services minister, implemented by him as Treasurer and supported by him as Prime Minister?

Linda Reynolds (WA, Liberal Party, Minister for Government Services) Share this | Link to this | Hansard source

I thank the senator for the question. The Federal Court has approved a settlement of the income compliance class action. Services Australia will be implementing a scheme to distribute the settlement funds of $112 million, less court approved costs for Gordon Legal. The background of the history which Senator Gallagher raises is very well-known. But for me, as the minister now, what is important is how we move forward and put this behind us. The court has decided the settlement is fair and reasonable and is in the interests of class action members. The court noted that the contradictor who was appointed to represent group members' interests described the proposed settlement as a very favourable outcome. Both the Commonwealth and Gordon Legal have acknowledged that the settlement of the class action is not an admission of liability by the Commonwealth and does not reflect any acceptance by the Commonwealth of the allegations that the Commonwealth or any of its officers had any knowledge of unlawfulness associated with the Income Compliance Program. His Honour similarly found that there is little in the materials placed before the courts that could have substantiated such an allegation.

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

Senator Gallagher, a supplementary question?

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Justice Murphy also said:

One thing that stands out … is the financial hardship, anxiety and distress, including suicidal ideation and in some cases suicide, that people—

or their loved ones—

say they have suffered through the Robodebt system …

Does the Morrison government accept that almost half a million people were hounded and suffered at the hands of a scheme designed, implemented and supported by Mr Morrison from day one?

Linda Reynolds (WA, Liberal Party, Minister for Government Services) Share this | Link to this | Hansard source

Any death is regrettable, but I think the suggestion by those opposite that there was an elevated death rate for those who previously received income data-matching letters is not consistent with the facts. Incorrectly interpreting death statistics as being suicides can, in fact, cause further distress. I would ask, most sincerely, all parliamentary colleagues and the media to reflect on their commentary, including their own duty of responsibility to not risk causing harm to vulnerable Australians.

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

Order! 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

My point of order is on direct relevance. I think everyone in this place—some of us personally—understands this is an issue that must be spoken about carefully. If you listened to what Senator Gallagher asked, she quoted Justice Murphy and she asked if this government accepted that almost half a million people were hounded and suffered at the hands of a scheme designed, implemented and supported by the Prime Minister from day one. I would ask the minister not to go down the path she is going but to be directly relevant to that question.

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

I'm glad you remind the minister of the question. I believe, given the quotation that was used, the minister is allowed to talk about that topic and remain directly relevant.

Linda Reynolds (WA, Liberal Party, Minister for Government Services) Share this | Link to this | Hansard source

Thank you very much, Mr President. What I will do is reiterate what the Prime Minister said on 11 June 2020. The Prime Minister did apologise in parliament for any hurt and harm caused in the way the government has dealt with this issue. Clearly, this has been an extraordinarily difficult process for all involved, and we do apologise for the way aspects of this program were administered. Departmental officials— (Time expired)

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Justice Murphy also said that the harm and flaws in Mr Morrison's illegal robodebt scheme 'should have been obvious, should have been plain' and that ministers and senior public servants 'should have known'. How did the Morrison government keep this massive failure of public administration, which is estimated to cost taxpayers an overall $4 billion, going for so long?

Linda Reynolds (WA, Liberal Party, Minister for Government Services) Share this | Link to this | Hansard source

Again, can I just say that the facts and circumstances of this matter are well known; they have been well prosecuted and traversed in this place and also in the courts. That matter has come to a conclusion in that the Federal Court has approved a settlement in the income compliance class action. The court has said that this settlement on behalf of the Commonwealth is fair and reasonable and is in the interests of class action members.

Opposition Senators:

Opposition senators interjecting—

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

Order on my left! If I call senators to order I'm going to ask them to pause interjecting.