Banks accuse Labor of cheap politics
Australian Financial Review Aug 23 2016 4:57 PM
Phillip Coorey
The banks have slammed the Labor Party for playing politics with the sector after chief tactician Tony Burke said the Opposition would use a motion to establish a royal commission to test the government's one-seat majority when Parliament resumes.
Fearful that a Coalition MP might be convinced to cross the floor to support the commission, the Australian Bankers Association said on Tuesday that enough was enough and that Labor kept changing its reasons as to why a royal commission was warranted.
Originally, it was argued a commission was needed to clean up the culture of the banks and ensure the regulatory regime was adequate following a string of financial advice and insurance scandals in which customers had been dudded. In recent weeks, Labor has cited the refusal to pass on in full an interest rate cut, bank profits and executive remuneration as further grist for its cause.
No terms yet
ABA chief executive Steven Munchenberg said that in addition, Labor had been harping on for months about a royal commission but had yet to propose any terms of reference.
"It says a lot that Labor has not produced a terms of reference in the four months since it first called for a royal commission, yet has clearly locked down its use as a political tactic against the government," he said.
Mr Burke warned the government that Labor intends to move parliamentary motions for a suspension of standing orders in favour of a debate and vote on the proposed inquiry when Parliament resumes next week.
"Labor has made all sorts of claims for a royal commission but clearly the real reason is just to attack the government. It is disappointing that this political tactic risks undermining confidence in our banking system which sits at the core of the economy, at a time of growing global uncertainty," he said.
"In the meantime, banks will get on with implementing comprehensive new measures to protect customer interests, increase transparency and accountability and build trust and confidence in banks."
Labor leader Bill Shorten tweeted in response:
"No, you're wrong. It's for the thousands of people who've been ripped off by dodgy banking practices."