Jane Hume (Victoria, Liberal Party) Share this | Hansard source

I do not think it will come as any surprise at all to find that the government does not support a royal commission or a parliamentary commission of inquiry into the banking and financial services sector. Such a commission will not benefit consumers and nor will it benefit the Australian economy. A royal commission will cost taxpayers millions and millions of dollars. It will take so many years to complete. It would undermine the confidence that we have in our banking sector, and this is so important. It will harm investment in the banking sector, it will harm investment in the economy and it could put at risk our AAA credit rating, which is so important for our prosperity and progress. Not only that; most importantly, it will do nothing to assist consumers in any practical way at all.

While others in this chamber pursue headlines and populist politicking—and I certainly do not limit that criticism to the Greens, Senator Whish-Wilson—this government is actually delivering on some of the most ambitious financial systems reforms in modern history. The coalition's reform agenda is wide-ranging and it is comprehensive. It will strengthen the financial regulator, ASIC, and it will ensure that consumers get a much fairer deal.

The government's commitment to a strong and stable financial sector started long ago with the commissioning of the financial systems inquiry—the Murray inquiry. You may remember as far back as 2010, when the coalition made an election commitment to conduct a broad, root-and-branch inquiry into Australia's financial system. On coming to government , it delivered on that promise. It appointed David Murray to head that commission. David Murray is a man of great knowledge who has the admiration and respect of many people in this chamber but also so many people in the industry.

The Murray inquiry was arguably the most thorough report into the banking sector in a generation. It was an inquiry which, unbelievably, disingenuously, was not supported by Labor. In fact, when he was the Treasurer, Chris Bowen, said: 'The financial system is strong, well-regulated and well managed and I have not seen a case for a full-blown inquiry.' This is Chris Bowen when he was Treasurer: 'I have not seen a case for a full-blown inquiry.' The Labor Party opposed the Murray inquiry, despite the fact that most of the notable scandals and collapses such as Trio Capital, Great Southern and of course Storm Financial, which Senator Whish-Wilson mentioned, happened on Labor's watch. Yet Labor opposed the Murray inquiry, when the Leader of the Opposition, Mr Bill Shorten, was the minister responsible for financial services. The irony just abounds. What a surprise that in six years of government Labor did not call for a banking royal commission. Labor was in government for six years and never once looked to review our financial system.

Let me just remind the chamber of Labor's positions on the banking sector at that time. The member for Maribyrnong, Bill Shorten, now the Leader of the Opposition, was Minister for Financial Services and Superannuation for over 1,000 days. At that time he had the power to propose inquiries and to draft laws and yet he did nothing. When Bill Shorten was the minister, he said:

Australia has some of the best banks in the world. It is partly because of our excellent regulatory system and prudent management.