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

I rise to speak in support of the Treasury Laws Amendment (APRA Governance) Bill 2018. The bill provides the Governor-General with the discretion to appoint a second deputy chairperson of the Australian Prudential Regulation Authority. APRA is the prudential regulator of the Australian financial services industry. It's an independent Australian government body which overseas banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies and most of the superannuation industry.

APRA is governed by a full-time executive group of at least three and no more than five members. The terms and conditions of the appointment of members is set out in the APRA Act. Members are appointed by the Governor-General on the nomination of the relevant minister. Currently, one member must be appointed chair and another member may be appointed deputy chair. Currently, APRA has only three members. This bill provides for the Governor-General to appoint a second deputy chair of APRA. Currently, the Governor-General only has the discretion to appoint one full-time APRA member as the deputy chair. Labor supports an additional deputy chairperson.

As the explanatory memorandum notes, amending the APRA Act to provide for two deputy chairpersons will assist APRA in operating as an effective and efficient regulator. The proposed changes will provide greater flexibility in the way in which APRA is governed and enhance the skills and capabilities available to APRA and its members. It will improve the ability of the members to manage new or more complex issues.

Given the shocking evidence presented to the royal commission so far, it's clear that we need strong and effective financial regulators. It was this government that actually cut funding to another Australian financial regulator, ASIC, by $120 million in the 2014-15 budget. The government only moved to restore funding after Labor called for a royal commission into the banking and financial services sector. And even then it was so it could look like it was doing something while stubbornly refusing a royal commission. Prime Minister Malcolm Turnbull and Treasurer Scott Morrison spent the last two years telling the Australian people that a royal commission was unnecessary. In fact this government spent 601 days bitterly resisting the urgent need for a royal commission into banking. And, when the Prime Minister finally announced it, he still called it regrettable. Eventually, those opposite grudgingly acknowledged that there was an error in their judgement in protecting—

John Williams (NSW, National Party) Share this | Link to this | Hansard source

You're not including me in that, are you?

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

Senator Williams, I do acknowledge your efforts in this regard, very much so. Eventually, those opposite grudgingly acknowledged their error of judgement in protecting the banks for so long and set up the royal commission. We have heard some shocking evidence presented to the royal commission, and yet those opposite still want to give the banks a $17 billion tax cut. We need Australia's financial regulators to be strong and to operate as effectively and efficiently as possible. That's why Labor will be supporting this bill.

Anne Ruston (SA, Liberal Party, Assistant Minister for Agriculture and Water Resources) Share this | Link to this | Hansard source

I thank the senator for her contribution to this debate and commend the bill to the Senate.

Question agreed to.

Bill read a second time.