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Scott Morrison disputes need for inquiry into banking industry Scott Morrison disputes need for inquiry into banking industry
(5 months later)
The treasurer, Scott Morrison, has all but ruled out a wide-ranging inquiry into the banking sector by the corporate watchdog Asic.The treasurer, Scott Morrison, has all but ruled out a wide-ranging inquiry into the banking sector by the corporate watchdog Asic.
The role of the Australian Securities and Investment Commission has been at the heart of a debate about whether Australia needed a royal commission into the banking industry after numerous scandals.The role of the Australian Securities and Investment Commission has been at the heart of a debate about whether Australia needed a royal commission into the banking industry after numerous scandals.
Related: Asic chief: Coalition's cuts reduced our capacity to investigate
The government said Asic has the same powers as a royal commission.The government said Asic has the same powers as a royal commission.
But when asked on Thursday if the government would ask Asic to instigate a wide-ranging review into the banking sector, Morrison would not back the proposal.But when asked on Thursday if the government would ask Asic to instigate a wide-ranging review into the banking sector, Morrison would not back the proposal.
“That is not something they’ve sought from me, and it’s not something they think is necessary because they know they already have the powers to go and do it,” he told ABC Radio on Thursday. “We remain to have those options available to us.“That is not something they’ve sought from me, and it’s not something they think is necessary because they know they already have the powers to go and do it,” he told ABC Radio on Thursday. “We remain to have those options available to us.
“Asic understands the issues that are going on in the banking and financial system and Asic will continue to pursue these issues with the full force of their powers.”“Asic understands the issues that are going on in the banking and financial system and Asic will continue to pursue these issues with the full force of their powers.”
Morrison said the government initiated a review of how Asic was doing its job last July.Morrison said the government initiated a review of how Asic was doing its job last July.
He played down the impact of the $120m cut to the agency, saying “efficiencies” were enacted across all government sectors.He played down the impact of the $120m cut to the agency, saying “efficiencies” were enacted across all government sectors.
Earlier in the week, the head of Asic, Greg Medcraft, said the funding shortfall had affected the agency’s ability to carry out proactive surveillance.Earlier in the week, the head of Asic, Greg Medcraft, said the funding shortfall had affected the agency’s ability to carry out proactive surveillance.
Last week Labor promised to initiate a royal commission into the banking industry if it won the federal election.Last week Labor promised to initiate a royal commission into the banking industry if it won the federal election.
Related: Schools and hospitals need a straight message from Scott Morrison and PM
Morrison said “fairness” would be a key component of the coming federal budget, but he quashed hopes of big spending.Morrison said “fairness” would be a key component of the coming federal budget, but he quashed hopes of big spending.
“This is a very tight fiscal environment,” he said. “There isn’t a lot of room to move.”“This is a very tight fiscal environment,” he said. “There isn’t a lot of room to move.”
He backed up comments he made on Wednesday night during a dinner speech to the Business Council of Australia, saying the government would invest in education and health. However, that investment would fit with the government’s objective of “living within its means”.He backed up comments he made on Wednesday night during a dinner speech to the Business Council of Australia, saying the government would invest in education and health. However, that investment would fit with the government’s objective of “living within its means”.
“We’ll do that in a way that taxpayers can afford, a way we can do it sustainably,” Morrison said.“We’ll do that in a way that taxpayers can afford, a way we can do it sustainably,” Morrison said.
On Wednesday the former head of the Reserve Bank, Bernie Fraser, rubbished the government’s sentiment of “living within its means”, saying governments were different from households because they were responsible for providing services that families do not.On Wednesday the former head of the Reserve Bank, Bernie Fraser, rubbished the government’s sentiment of “living within its means”, saying governments were different from households because they were responsible for providing services that families do not.
“It’s absolute nonsense, really,” Fraser told ABC Radio.“It’s absolute nonsense, really,” Fraser told ABC Radio.