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     5   Banking and financial services industry

Mr Shorten (Leader of the Opposition), by leave, moved—That the House: 

(1)        notes that:

(a)        scandals in the banking and financial services industry have led to:

                                                   (i)       retirees having their retirement savings gutted;

                                                 (ii)       families being rorted;

                                               (iii)       small business owners losing everything;

                                               (iv)       life insurance policy holders being denied justice; and

                                                 (v)       agricultural assets being improperly foreclosed;

(b)        despite several inquiries, new powers, new resources, and a Financial Ombudsman Service, the rorts and the rip offs continue;

(c)        it is clear from the breadth and scope of the allegations that the problems in this industry go beyond any one bank, type of financial institution or group of receivers; and

(d)        Labor, Greens, crossbench, Liberal and National parliamentarians have supported a thorough investigation of the culture and practices within the financial services industry through a Royal Commission which is the only forum with the coercive powers and broad jurisdiction necessary to properly perform this investigation; and

(2)        therefore, calls on the Government to listen to the many victims of banking and financial scandals who are calling for the immediate establishment of a Royal Commission.

Debate ensuing—

Mr Christensen moved, as an amendment—That all words after “That” be omitted with a view to substituting the following words:

“this House:

(1)        acknowledges concerns in the community about certain practices in the banking sector;

(2)        notes that most of the notable scandals and collapses within the financial services sectors occurred under Labor’s watch, when the Leader of the Opposition was the Minister responsible for Financial Services;

(3)        notes that the Leader of the Opposition, as the then Minister responsible for Financial Services, neither initiated a royal commission into the banking sectors nor took meaningful action against the banks;

(4)        supports the Prime Minister’s actions in:

(a)        calling on the banks to pass on interest rate cuts;

(b)        reminding the banks that they operate in Australia under a ‘social licence’;

(c)        his commitment to improving the culture in the banking industry; and

(d)        his requirement that Australia’s major banks appear at least once a year before the House of Representatives Standing Committee on Economics to enable the Committee to report jointly to the Treasurer and the Parliament on Australia’s banking and financial system;

(5)        acknowledges that the Australian Government has already taken significant steps to further strengthen our banking and financial system by commissioning the Murray Financial System Inquiry and taking significant steps toward implementing the recommendations of that report;

(6)        notes that the Murray Inquiry was opposed by Labor, with the then Treasurer, the Member for McMahon, stating “The financial system is strong, well-regulated and well managed and I have not seen a case for a full blown inquiry”;

(7)        notes that the Australian Government has conducted a capability review of ASIC and has acted to strengthen the resources and capability of the regulator, which not only has the investigative and reporting powers of a Royal Commission but also strong powers to compel a person to answer questions under oath, to compel the production of documents, to seek search warrants, to conduct investigations and to then use this information in prosecutions;



 

(8)        notes that ASIC has commenced legal proceedings against three of the big four banks for alleged market manipulation of the bank bill swap rate, has commenced an investigation into the allegations surrounding CommInsure and the broader life insurance sector and is undertaking investigations into the conduct of the largest financial advice firms, as part of its Wealth Management Project;

(9)        notes that, at their appearance before the House of Representatives Standing Committee on Economics, the banks will be required to explain pricing decisions and discuss their progress in responding to various issues raised in previous Parliamentary inquiries;

(10)    notes that the Government is committed to ensuring that consumer complaints in the financial system don’t fall through the cracks, that consumers can access justice and appropriate compensation in a timely manner, and that the Government has tasked an expert panel, led by Professor Ian Ramsay, with a comprehensive review of the External Dispute Resolution Schemes;

(11)    notes that the Australian Government, via the Ramsay Review, is looking at establishing a one-stop-shop, which could formally adjudicate on consumer complaints and award compensation to those affected by malfeasance;

(12)    notes that the Ramsay Review will produce an interim report to Government by November this year and will produce its final report no later than March 2017;

(13)    supports the Government’s action in tasking the Small Business and Family Enterprise Ombudsman with a forensic review of the most egregious cases identified by the Parliamentary Joint Committee report into the Impairment of Customer Loans to determine whether the regulatory deficiencies identified by the Inquiry, and any additional deficiencies identified through the forensic examination of the cases, require further specific reforms; and

(14)    notes that if a Royal Commission was to go ahead it would simply be reviewing old ground and would delay well-developed and important reforms that will strengthen consumer protections, ensure malpractice is detected and punished, and provide a one-stop-shop for consumer complaints, in addition, a Royal Commission would send a signal internationally that there are structural problems with our banking and financial system which would have significant repercussions for confidence, international investment and for our AAA credit rating.”

Closure

Mr Pyne (Leader of the House) moved—That the question be now put.

Question—That the question be now put—put.

The House divided (the Speaker, Mr A. D. H. Smith, in the Chair)—

AYES, 75

Mr Abbott

Mr Falinski

Ms M. L. Landry

Mr Pyne

Mr Alexander

Mr Fletcher

Mr C. A. S. Laundy

Mr Ramsey*

Mrs K. L. Andrews

Ms Flint

Mr Leeser

Mr Robert

Mr K. J. Andrews

Mr Frydenberg

Ms Ley

Mrs Sudmalis

Ms Banks

Mr Gee

Mr Littleproud

Mr Sukkar

Ms Bishop

Dr Gillespie

Mr McCormack

Mr Taylor

Mr Broad

Mr Goodenough

Dr McVeigh

Mr Tehan

Mr Broadbent

Mr Hartsuyker

Ms Marino

Mr Tudge

Mr Buchholz

Mr Hastie

Mr Morrison

Mr Turnbull

Mr D. J. Chester

Mr Hawke

Mr Morton

Mr van Manen

Mr Christensen*

Ms Henderson

Mr E. L. O’Brien

Mr Vasta

Mr Ciobo

Mr Hogan

Mr L. S. O’Brien

Mr Wallace

Mr Coleman

Mr Howarth

Mr O’Dowd

Mrs Wicks

Mr Coulton

Mr Hunt

Ms O’Dwyer

Mr R. J. Wilson

Mr Crewther

Mr Irons

Mr Pasin

Mr T. R. Wilson

Mr Drum

Mr Joyce

Mr Pitt

Mr Wood

Mr Dutton

Mr Keenan

Mr Porter

Mr Wyatt

Mr Entsch

Mr C. Kelly

Mrs Prentice

Mr Zimmerman

Mr Evans

Mr Laming

Ms Price

 

NOES, 73

Mr Albanese

Mr Dick

Ms Keay

Mr Perrett*

Dr Aly

Mr Dreyfus

Dr M. J. Kelly

Ms Plibersek

Mr Bandt

Mrs Elliot

Mr Keogh

Ms Rishworth

Ms Bird

Ms Ellis

Mr Khalil

Ms Rowland

Mr Bowen

Mr Feeney

Ms C. F. King

Ms Ryan*

Ms Brodtmann

Mr Fitzgibbon

Ms M. M. H. King

Ms Sharkie

Mr Burke

Dr Freelander

Ms Lamb

Mr Shorten

Ms Burney

Mr Georganas

Dr Leigh

Mr Snowdon

Mr M. C. Butler

Mr Giles

Ms McBride

Ms Stanley

Ms T. M. Butler

Mr Gosling

Ms McGowan

Mr Swan

Mr Byrne

Mr Hammond

Ms Macklin

Ms Swanson

Dr Chalmers

Mr Hart

Mr Marles

Ms Templeman

Mr Champion

Mr Hayes

Mr B. K. Mitchell

Mr Thistlethwaite

Ms L. M. Chesters

Mr Hill

Mr R. G. Mitchell

Ms Vamvakinou

Mr Clare

Ms Husar

Mr Neumann

Mr Watts

Ms Claydon

Mr Husic

Mr O’Connor

Mr Wilkie

Ms Collins

Mr Jones

Ms O’Toole

Mr J. H. Wilson

Mr Conroy

Mr Katter

Ms Owens

Mr Zappia

Mr Danby

 

* Tellers

And so it was resolved in the affirmative.

And the question—That the amendment be agreed to—being accordingly put—

The House divided (the Speaker, Mr A. D. H. Smith, in the Chair)—

AYES, 75

Mr Abbott

Mr Falinski

Ms M. L. Landry

Mr Pyne

Mr Alexander

Mr Fletcher

Mr C. A. S. Laundy

Mr Ramsey*

Mrs K. L. Andrews

Ms Flint

Mr Leeser

Mr Robert

Mr K. J. Andrews

Mr Frydenberg

Ms Ley

Mrs Sudmalis

Ms Banks

Mr Gee

Mr Littleproud

Mr Sukkar

Ms Bishop

Dr Gillespie

Mr McCormack

Mr Taylor

Mr Broad

Mr Goodenough

Dr McVeigh

Mr Tehan

Mr Broadbent

Mr Hartsuyker

Ms Marino

Mr Tudge

Mr Buchholz

Mr Hastie

Mr Morrison

Mr Turnbull

Mr D. J. Chester

Mr Hawke

Mr Morton

Mr van Manen

Mr Christensen*

Ms Henderson

Mr E. L. O’Brien

Mr Vasta

Mr Ciobo

Mr Hogan

Mr L. S. O’Brien

Mr Wallace

Mr Coleman

Mr Howarth

Mr O’Dowd

Mrs Wicks

Mr Coulton

Mr Hunt

Ms O’Dwyer

Mr R. J. Wilson

Mr Crewther

Mr Irons

Mr Pasin

Mr T. R. Wilson

Mr Drum

Mr Joyce

Mr Pitt

Mr Wood

Mr Dutton

Mr Keenan

Mr Porter

Mr Wyatt

Mr Entsch

Mr C. Kelly

Mrs Prentice

Mr Zimmerman

Mr Evans

Mr Laming

Ms Price

 



 

NOES, 73

Mr Albanese

Mr Dick

Ms Keay

Mr Perrett*

Dr Aly

Mr Dreyfus

Dr M. J. Kelly

Ms Plibersek

Mr Bandt

Mrs Elliot

Mr Keogh

Ms Rishworth

Ms Bird

Ms Ellis

Mr Khalil

Ms Rowland

Mr Bowen

Mr Feeney

Ms C. F. King

Ms Ryan*

Ms Brodtmann

Mr Fitzgibbon

Ms M. M. H. King

Ms Sharkie

Mr Burke

Dr Freelander

Ms Lamb

Mr Shorten

Ms Burney

Mr Georganas

Dr Leigh

Mr Snowdon

Mr M. C. Butler

Mr Giles

Ms McBride

Ms Stanley

Ms T. M. Butler

Mr Gosling

Ms McGowan

Mr Swan

Mr Byrne

Mr Hammond

Ms Macklin

Ms Swanson

Dr Chalmers

Mr Hart

Mr Marles

Ms Templeman

Mr Champion

Mr Hayes

Mr B. K. Mitchell

Mr Thistlethwaite

Ms L. M. Chesters

Mr Hill

Mr R. G. Mitchell

Ms Vamvakinou

Mr Clare

Ms Husar

Mr Neumann

Mr Watts

Ms Claydon

Mr Husic

Mr O’Connor

Mr Wilkie

Ms Collins

Mr Jones

Ms O’Toole

Mr J. H. Wilson

Mr Conroy

Mr Katter

Ms Owens

Mr Zappia

Mr Danby

 

* Tellers

And so it was resolved in the affirmative.

Question—That the motion, as amended, be agreed to—

Debate ensued.

Closure

Mr Pyne moved—That the question be now put.

Question—That the question be now put—put.

The House divided (the Speaker, Mr A. D. H. Smith, in the Chair)—

AYES, 75

Mr Abbott

Mr Falinski

Ms M. L. Landry

Mr Pyne

Mr Alexander

Mr Fletcher

Mr C. A. S. Laundy

Mr Ramsey*

Mrs K. L. Andrews

Ms Flint

Mr Leeser

Mr Robert

Mr K. J. Andrews

Mr Frydenberg

Ms Ley

Mrs Sudmalis

Ms Banks

Mr Gee

Mr Littleproud

Mr Sukkar

Ms Bishop

Dr Gillespie

Mr McCormack

Mr Taylor

Mr Broad

Mr Goodenough

Dr McVeigh

Mr Tehan

Mr Broadbent

Mr Hartsuyker

Ms Marino

Mr Tudge

Mr Buchholz

Mr Hastie

Mr Morrison

Mr Turnbull

Mr D. J. Chester

Mr Hawke

Mr Morton

Mr van Manen

Mr Christensen*

Ms Henderson

Mr E. L. O’Brien

Mr Vasta

Mr Ciobo

Mr Hogan

Mr L. S. O’Brien

Mr Wallace

Mr Coleman

Mr Howarth

Mr O’Dowd

Mrs Wicks

Mr Coulton

Mr Hunt

Ms O’Dwyer

Mr R. J. Wilson

Mr Crewther

Mr Irons

Mr Pasin

Mr T. R. Wilson

Mr Drum

Mr Joyce

Mr Pitt

Mr Wood

Mr Dutton

Mr Keenan

Mr Porter

Mr Wyatt

Mr Entsch

Mr C. Kelly

Mrs Prentice

Mr Zimmerman

Mr Evans

Mr Laming

Ms Price

 



 

NOES, 73

Mr Albanese

Mr Dick

Ms Keay

Mr Perrett*

Dr Aly

Mr Dreyfus

Dr M. J. Kelly

Ms Plibersek

Mr Bandt

Mrs Elliot

Mr Keogh

Ms Rishworth

Ms Bird

Ms Ellis

Mr Khalil

Ms Rowland

Mr Bowen

Mr Feeney

Ms C. F. King

Ms Ryan*

Ms Brodtmann

Mr Fitzgibbon

Ms M. M. H. King

Ms Sharkie

Mr Burke

Dr Freelander

Ms Lamb

Mr Shorten

Ms Burney

Mr Georganas

Dr Leigh

Mr Snowdon

Mr M. C. Butler

Mr Giles

Ms McBride

Ms Stanley

Ms T. M. Butler

Mr Gosling

Ms McGowan

Mr Swan

Mr Byrne

Mr Hammond

Ms Macklin

Ms Swanson

Dr Chalmers

Mr Hart

Mr Marles

Ms Templeman

Mr Champion

Mr Hayes

Mr B. K. Mitchell

Mr Thistlethwaite

Ms L. M. Chesters

Mr Hill

Mr R. G. Mitchell

Ms Vamvakinou

Mr Clare

Ms Husar

Mr Neumann

Mr Watts

Ms Claydon

Mr Husic

Mr O’Connor

Mr Wilkie

Ms Collins

Mr Jones

Ms O’Toole

Mr J. H. Wilson

Mr Conroy

Mr Katter

Ms Owens

Mr Zappia

Mr Danby

 

* Tellers

And so it was resolved in the affirmative.

And the question—That the motion, as amended, be agreed to—being accordingly put—

The House divided (the Speaker, Mr A. D. H. Smith, in the Chair)—

AYES, 75

Mr Abbott

Mr Falinski

Ms M. L. Landry

Mr Pyne

Mr Alexander

Mr Fletcher

Mr C. A. S. Laundy

Mr Ramsey*

Mrs K. L. Andrews

Ms Flint

Mr Leeser

Mr Robert

Mr K. J. Andrews

Mr Frydenberg

Ms Ley

Mrs Sudmalis

Ms Banks

Mr Gee

Mr Littleproud

Mr Sukkar

Ms Bishop

Dr Gillespie

Mr McCormack

Mr Taylor

Mr Broad

Mr Goodenough

Dr McVeigh

Mr Tehan

Mr Broadbent

Mr Hartsuyker

Ms Marino

Mr Tudge

Mr Buchholz

Mr Hastie

Mr Morrison

Mr Turnbull

Mr D. J. Chester

Mr Hawke

Mr Morton

Mr van Manen

Mr Christensen*

Ms Henderson

Mr E. L. O’Brien

Mr Vasta

Mr Ciobo

Mr Hogan

Mr L. S. O’Brien

Mr Wallace

Mr Coleman

Mr Howarth

Mr O’Dowd

Mrs Wicks

Mr Coulton

Mr Hunt

Ms O’Dwyer

Mr R. J. Wilson

Mr Crewther

Mr Irons

Mr Pasin

Mr T. R. Wilson

Mr Drum

Mr Joyce

Mr Pitt

Mr Wood

Mr Dutton

Mr Keenan

Mr Porter

Mr Wyatt

Mr Entsch

Mr C. Kelly

Mrs Prentice

Mr Zimmerman

Mr Evans

Mr Laming

Ms Price

 



 

NOES, 73

Mr Albanese

Mr Dick

Ms Keay

Mr Perrett*

Dr Aly

Mr Dreyfus

Dr M. J. Kelly

Ms Plibersek

Mr Bandt

Mrs Elliot

Mr Keogh

Ms Rishworth

Ms Bird

Ms Ellis

Mr Khalil

Ms Rowland

Mr Bowen

Mr Feeney

Ms C. F. King

Ms Ryan*

Ms Brodtmann

Mr Fitzgibbon

Ms M. M. H. King

Ms Sharkie

Mr Burke

Dr Freelander

Ms Lamb

Mr Shorten

Ms Burney

Mr Georganas

Dr Leigh

Mr Snowdon

Mr M. C. Butler

Mr Giles

Ms McBride

Ms Stanley

Ms T. M. Butler

Mr Gosling

Ms McGowan

Mr Swan

Mr Byrne

Mr Hammond

Ms Macklin

Ms Swanson

Dr Chalmers

Mr Hart

Mr Marles

Ms Templeman

Mr Champion

Mr Hayes

Mr B. K. Mitchell

Mr Thistlethwaite

Ms L. M. Chesters

Mr Hill

Mr R. G. Mitchell

Ms Vamvakinou

Mr Clare

Ms Husar

Mr Neumann

Mr Watts

Ms Claydon

Mr Husic

Mr O’Connor

Mr Wilkie

Ms Collins

Mr Jones

Ms O’Toole

Mr J. H. Wilson

Mr Conroy

Mr Katter

Ms Owens

Mr Zappia

Mr Danby

 

* Tellers

And so it was resolved in the affirmative.