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| Turnbull looks to restore Abbott cuts to financial sector regulator | Turnbull looks to restore Abbott cuts to financial sector regulator |
| (about 2 hours later) | |
| The Turnbull government could restore hundreds of millions of dollars in funding cuts to the financial regulator made in the Abbott government’s first budget, while boosting the regulator’s intervention powers at the same time. | |
| The changes could be announced as early as Tuesday, in a bid to dampen the popularity of Labor’s call for a royal commission into the financial services sector two weeks ago. | The changes could be announced as early as Tuesday, in a bid to dampen the popularity of Labor’s call for a royal commission into the financial services sector two weeks ago. |
| Related: Pesky facts are spoiling Scott Morrison's economic story | Lenore Taylor | Related: Pesky facts are spoiling Scott Morrison's economic story | Lenore Taylor |
| Federal cabinet met on Monday and considered a suite of policies to boost the resources of the Australian Securities and Investments Commission (Asic), with its proposals to be taken to a party room meeting on Tuesday. | |
| Labor has ramped up its attack, claiming the government has had its head in the sand on financial misadventure for the past two years. | |
| The proposals considered by the Turnbull cabinet could involve restoring all of the $120m funding that Asic lost in the Abbott government’s 2014 budget. | |
| It also considered introducing a tougher regime of civil penalties, and giving Asic product intervention powers. | It also considered introducing a tougher regime of civil penalties, and giving Asic product intervention powers. |
| A user-pays funding model – in which banks and other institutions that need regulation are required to contribute to the funding of the regulator – could also be introduced. | A user-pays funding model – in which banks and other institutions that need regulation are required to contribute to the funding of the regulator – could also be introduced. |
| The Asic chairman, Greg Medcraft, has called repeatedly for such a funding model to be introduced. | |
| The Coalition’s plans come as Labor ramps up its attack on the government, buoyed by the popularity of its recent call for a royal commission. | The Coalition’s plans come as Labor ramps up its attack on the government, buoyed by the popularity of its recent call for a royal commission. |
| Labor says a review of speeches and public comments from Asic executives from the past two years shows the regulator has warned the government on 41 occasions that it is unable to do its job properly without greater powers and resourcing. | Labor says a review of speeches and public comments from Asic executives from the past two years shows the regulator has warned the government on 41 occasions that it is unable to do its job properly without greater powers and resourcing. |
| The shadow treasurer, Chris Bowen, says the government has repeatedly ignored these warnings “as scandal after scandal has been revealed by the press and through Senate economics committee inquiries.” | |
| “In October 2014, Asic chairman Greg Medcraft declared that Australia was a ‘paradise’ for white-collar criminals because of its soft punishments of corporate offences, calling on the government to give the regulator the power to impose harsher jail terms and bigger penalties for white-collar crime,” Bowen said. | |
| “Asic has been calling on this government to take action repeatedly in public and parliamentary forums.” | “Asic has been calling on this government to take action repeatedly in public and parliamentary forums.” |
| Related: John Hewson tells Q&A Turnbull is taking a big risk with election | |
| A Fairfax/Ipsos poll published on Monday showed 65% of voters support Labor’s call for a royal commission, while 26% oppose the idea. | A Fairfax/Ipsos poll published on Monday showed 65% of voters support Labor’s call for a royal commission, while 26% oppose the idea. |
| Labor and Greens voters are the biggest supporters, at 78% and 79% respectively, while over half of Coalition voters support the idea, at 53%. | Labor and Greens voters are the biggest supporters, at 78% and 79% respectively, while over half of Coalition voters support the idea, at 53%. |
| The prime minister, Malcolm Turnbull, and the treasurer, Scott Morrison, told parliament on Monday that Labor’s call for a royal commission was populist, whereas the government’s plan would be about taking action. | |
| “We are taking action to ensure that Asic does its job,” Turnbull said. |