Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Brandis. I refer to the Prime Minister's recent statement on the banking industry that 'there have been too many troubling incidents over recent times for them simply to be dismissed'. Will the Turnbull government now join with Labor and support a royal commission into our banking and financial services industry?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

No, we will not; and I will explain to you why we will not. Either Mr Shorten does not understand the purpose of a royal commission or, if he does, he is irresponsibly and recklessly calling for a royal commission well knowing that it is not the appropriate way to deal with identified problems. Last week, Mr Turnbull gave a speech at the Westpac 199th anniversary luncheon and, during the course of that speech, he did make a number of chastising remarks about the banking industry. So the suggestion that the government is somehow being indifferent to a problem, or averting its eyes from a problem, is entirely wrong.

Unlike the Heydon royal commission into the trade union movement—where there was widespread systemic and documented illegality, criminality and corruption—no-one, not even someone as reckless as Mr Shorten, has gone so far as to suggest that there is widespread illegality, criminality and corruption in the Australian banking sector. The Australian banking sector is one of the strongest financial industries in the world—and, Senator Dastyari, that is the achievement of your side of politics as well as my side of politics—because the institutional structure that undergirds and polices and regulates the Australian financial system is a very strong set of safeguards.

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. How can Australians trust the Abbott-Turnbull government to regulate the banks and the financial services industry when this government has cut $120 million from ASIC, the bank regulator, since coming to office?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

As I was saying, we have one of the best regulated, best governed financial systems in the world. And you do not have to take that from me, Senator Dastyari. As recently as 2012, this is what Bill Shorten said: 'Australia has some of the best banks in the world. It is partly because of our excellent regulatory system and prudential management.' Mr Shorten also said, 'Australia's strong performance through the GFC was in large part due to the strength of its regulatory framework.' Senator Dastyari, it passes strange that you, of all people in the Senate, should be asking this question—because, as you will remember, when, in the middle of last year, the Greens proposed a motion to establish a royal commission into the banking industry, it was you who memorably interjected, 'This is a stunt.' Well, the stunt lies with you now, Senator Dastyari. (Time expired)

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister confirm that eight coalition senators and MPs are prepared to support a royal commission into the banking and financial services industry, including my dear friend Senator Williams, who has welcomed Labor's proposal? Minister, why is the government ignoring its own backbench and the interests of Australian consumers by continuing to reject a royal commission?

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

It just goes to show how desperate and reckless you have become that what you, 10 months ago, condemned as a stunt is now the centrepiece of your policy. What you condemned as a stunt, you have now embraced as the centrepiece of your policy. We are a responsible government. We know that there is no system so good that it cannot be improved. But the way in which to do it, Senator Dastyari, is to take the institutions that we have—institutions which you and your leader and your shadow Treasurer have acknowledged are among the best regulators in the world—and make sure they can be as good as they possibly can be.

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock. Senator Dastyari, you have a point of order?

Sam Dastyari (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, it goes to relevance. I clearly asked whether the minister can confirm that eight coalition senators and MPs are prepared to support a royal commission into the banking and financial services industry. The minister has made no attempt to answer that part of the question.

Stephen Parry (President) Share this | Link to this | Hansard source

I would remind the Attorney-General of the question.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

That is why, Senator Dastyari, at the very time you were condemning the idea of a royal commission into the banking industry as a stunt, the Treasurer, Mr Morrison, was establishing a capability review to examine whether ASIC was as well set up as it could be—and the findings of that capability review will be announced shortly. (Time expired)