Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. What discussions has the Treasurer had with the CEOs of the four major banks about a royal commission into the financial services industry? When did the Treasurer first discuss the idea of a banking tribunal with these CEOs?

Mr Pyne interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Leader of the House will cease interjecting.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for his question. He would not be surprised to learn that it is actually the job of the Treasurer to work with the banking and financial sector all the time. Because, on this side of the House, we actually know that having a strong banking and financial system is one of the most important assets that our economy has. And we have been working with the sector since were elected.

The financial systems inquiry that was initiated by this government under former Prime Minister Tony Abbott and the former Treasurer was opposed by those opposite, who did not think there was a need to do anything at all in the financial systems area. But when they find themselves in opposition what they do is throw the switch to cheap populism. What we have from those opposite is not a plan to do anything constructive to actually improve the strength and resilience of our banking and financial system, which was the key reason why our economy survived the global financial crisis some eight years ago. Those opposite went on a spending binge. What the previous government had done under Treasurer Costello and Prime Minister Howard was to ensure that our banking and financial system was strong when the storm hit.

What this government is doing is exactly the same thing. What we are doing is working with the sector to ensure that we can ensure that the banking and financial system is as strong as it can possibly be, because it is an uncertain and volatile world. I have just returned from the IMF meetings and there is not an economy in the G20 or otherwise that would not want to be Australia at the moment and would not want to have the strong financial and banking system that ensures we can have the resilience to ensure that we underpin jobs and growth in this country.

Those opposite think that you can walk around and undermine and play reckless havoc with the banking and financial system. But we on this side of the House know that with careful work—from the financial systems inquiry; to the increased resources for ASIC; to the increased powers to ensure that malfeasance in this sector is dealt with, for everything from increased penalties for BBSW rate manipulation and things of this nature, to see they are dealt with; or moving towards a more level playing field when it comes to tribunals, to ensure that people with legitimate grievances can have their cases heard. These are the things we on this side of the House are doing. On that side of the House did nothing for six years and they come into opposition and play politics with people's real grievances.

The only thing those on that side are seeking when it comes to the banking and financial system is to improve the stocks of the Leader of the Opposition. It is a very cynical and cruel thing for those opposite to manipulate and use the legitimate grievances of Australians to promote their own political interests. (Time expired)