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| Bill Shorten says Malcolm Turnbull has 'sold out Australians' in favour of the banks – politics live | Bill Shorten says Malcolm Turnbull has 'sold out Australians' in favour of the banks – politics live |
| (35 minutes later) | |
| 4.22am BST | |
| 04:22 | |
| In Sydney, the Asic chairman Greg Medcraft is having a media conference in the wake of the banking announcement. He says the Turnbull government has shown confidence in him by extending his term, and the organisation accepts the findings of the capability review. | |
| Medcraft is asked whether he’s nervous about having to go cap in hand to the banks for funding. | |
| Er, no. I’ve been pushing for this user pays funding model for years. | |
| Medcraft says there should be a price signal, which acts as an incentive for businesses to behave properly. If they have to pay for their regulation, then they will be less inclined to act improperly. | |
| We want to have an incentive for them to do the right thing. Why should taxpayers be funding a market regulator? | |
| (I’d say for the same reason as taxpayers pay for police forces, and defence forces, and even journalists through ‘market failure’ broadcasters, like the ABC. To keep various bastards honest. That’s why.) | |
| Medcraft says there are user pays models for regulators overseas. | |
| 4.06am BST | |
| 04:06 | |
| A risky swerve into heteronormativity a moment ago from the sex discrimination commissioner. That won’t go down well at the next senate estimates. | |
| Kate Jenkins | |
| We still live in a community that has a dominant narrative of a white, heteronormative role for men and women in what they do at home and at work. | |
| Yet that doesn’t reflect our lived experiences and it’s certainly not meeting our national expectations. | |
| 3.56am BST | |
| 03:56 | |
| While I’ve been thundering about regulators Australia’s new sex discrimination commissioner, Kate Jenkins, has been speaking to journalists at the National Press Club. She’s referred in passing to a famous anti-discrimination case in the 1970s – Deborah Jane Wardley versus Ansett. | |
| Reg Ansett. A true marvel. | |
| Kate Jenkins | |
| In short, Mr Ansett argued that he wasn’t prepared to risk the safety of his passengers with an emotional, unpredictable woman in the cockpit. The High Court listened to that argument and recognised it was time for change. | |
| Deborah Wardley won and even as an11-year-old that I was then, I knew that news story marked an important milestone and like many kids around me, I saw a future in which discriminatory attitudes about women as the weaker sex were being replaced by the recognition that men and women were equal. | |
| 3.50am BST | |
| 03:50 | |
| I suppose I have an in-principle view about funding regulators: it’s an investment that’s worth making in any civil society and functioning democracy. I’m a pro-market person. I think markets work more then they don’t work, which is a deeply unfashionable view at this juncture. But I’d add an important caveat to that principle. I think markets work best when consumers have good information and when they are policed by well funded, independent, courageous regulators. Australia got through the global financial crisis in part because our regulatory system delivered for consumers. You can’t say the same of the regulatory system in other countries. Regulation is worth investing in, it’s not an inconvenience that needs to be outsourced to someone else. | |
| 3.39am BST | 3.39am BST |
| 03:39 | 03:39 |
| Bernard Keane at Crikey has just posted a piece which also raises similar concerns on my theme of regulatory capture, and the failure to confront systemic problems. Bernard raises an issue I didn’t think of: the problem associated with walking around public service hiring regulations (which was one part of today’s response). | Bernard Keane at Crikey has just posted a piece which also raises similar concerns on my theme of regulatory capture, and the failure to confront systemic problems. Bernard raises an issue I didn’t think of: the problem associated with walking around public service hiring regulations (which was one part of today’s response). |
| Another area of concern is that Asic will be freed up from restrictions relating to public service secondment employees from industry, pitched by Morrison and O’Dwyer as better enabling Asic to go after banks. | Another area of concern is that Asic will be freed up from restrictions relating to public service secondment employees from industry, pitched by Morrison and O’Dwyer as better enabling Asic to go after banks. |
| In fact, such secondments raise very serious concerns about industry capture of the regulator and were the subject of recommendations by the committee in light of the evidence of James Wheeldon – a former ASIC employee. | In fact, such secondments raise very serious concerns about industry capture of the regulator and were the subject of recommendations by the committee in light of the evidence of James Wheeldon – a former ASIC employee. |
| You can read Bernard’s analysis here. | You can read Bernard’s analysis here. |
| 3.21am BST | 3.21am BST |
| 03:21 | 03:21 |
| Some thoughts on the banking package | Some thoughts on the banking package |
| I mentioned earlier today something about precedents. The government is concerned about the precedent of a senate inquiry calling a cabinet minister (Arthur Sinodinos) before it, concerns that would sound a lot more valid had the government not itself opened the door by setting up royal commissions that required two former Labor prime ministers, Kevin Rudd and Julia Gillard, to turn up and answer questions. | I mentioned earlier today something about precedents. The government is concerned about the precedent of a senate inquiry calling a cabinet minister (Arthur Sinodinos) before it, concerns that would sound a lot more valid had the government not itself opened the door by setting up royal commissions that required two former Labor prime ministers, Kevin Rudd and Julia Gillard, to turn up and answer questions. |
| It’s a bit the same with this sortie on the banks. Scott Morrison over the past few days has been intent on making an argument that royal commissions deliver nothing concrete, an argument which rather exposes the government’s past practice in relation to the royal commissions Tony Abbott established essentially to settle score with his political opponents. Royal commissions are terrible unless they are our royal commissions. | It’s a bit the same with this sortie on the banks. Scott Morrison over the past few days has been intent on making an argument that royal commissions deliver nothing concrete, an argument which rather exposes the government’s past practice in relation to the royal commissions Tony Abbott established essentially to settle score with his political opponents. Royal commissions are terrible unless they are our royal commissions. |
| Bit silly, that argument, isn’t it? Can lead you into all sorts of internal contradictions. Perhaps the major parties could try and draw up some armistice on royal commissions if they are now deemed to be inconvenient. | Bit silly, that argument, isn’t it? Can lead you into all sorts of internal contradictions. Perhaps the major parties could try and draw up some armistice on royal commissions if they are now deemed to be inconvenient. |
| Now is Labor being populist? Of course it is. Is Labor trying to wrong foot the government on the eve of an election? Of course it is. Is Labor leaving itself open to questions about why it’s only just clicked into gear on the royal commission into the banking industry? Of course. These are all solid rebuttal points. | Now is Labor being populist? Of course it is. Is Labor trying to wrong foot the government on the eve of an election? Of course it is. Is Labor leaving itself open to questions about why it’s only just clicked into gear on the royal commission into the banking industry? Of course. These are all solid rebuttal points. |
| But they mean very little if the voters don’t buy your alternative. Let’s look at that for a minute. The government is getting the banks to pay $127m, a tax if you like, to pay for the cost of the regulator. That looks like stirring stuff, bastard banks, that’ll learn them, serves them right – until you start to think about it. | But they mean very little if the voters don’t buy your alternative. Let’s look at that for a minute. The government is getting the banks to pay $127m, a tax if you like, to pay for the cost of the regulator. That looks like stirring stuff, bastard banks, that’ll learn them, serves them right – until you start to think about it. |
| Shouldn’t there be a strict line between a regulator and the businesses being regulated? Isn’t there an intrinsic problem with blurring that line? I think there is. And I think the problem is pretty obvious when you think about it for more than five minutes. There is also the problem that restoring this funding isn’t actually an increase in funding if you consider that the government withdrew the same amount of funding from Asic. It’s just undoing a silly decision at someone else’s expense. | Shouldn’t there be a strict line between a regulator and the businesses being regulated? Isn’t there an intrinsic problem with blurring that line? I think there is. And I think the problem is pretty obvious when you think about it for more than five minutes. There is also the problem that restoring this funding isn’t actually an increase in funding if you consider that the government withdrew the same amount of funding from Asic. It’s just undoing a silly decision at someone else’s expense. |
| Then there’s the pass through problem. Passing off responsibility for funding the regulator to the banks will see the banks pass through the costs of that to their customers. In what universe won’t that happen? How can the government stop it happening? Finger waggling from the treasurer isn’t much of an enforcement mechanism, let’s be frank. But that’s the enforcement mechanism we were pointed to today: the treasurer’s fury. Not particularly terrifying. | Then there’s the pass through problem. Passing off responsibility for funding the regulator to the banks will see the banks pass through the costs of that to their customers. In what universe won’t that happen? How can the government stop it happening? Finger waggling from the treasurer isn’t much of an enforcement mechanism, let’s be frank. But that’s the enforcement mechanism we were pointed to today: the treasurer’s fury. Not particularly terrifying. |
| Then there are the cultural problems. All the evidence to date suggests there’s a systemic problem in the banks. How will that be addressed by blurring the line between them and the regulator? | Then there are the cultural problems. All the evidence to date suggests there’s a systemic problem in the banks. How will that be addressed by blurring the line between them and the regulator? |
| So I don’t think the government has fixed its political problem today or the practical problem – which is banks being insufficiently attentive and responsive to the needs of their customers. | So I don’t think the government has fixed its political problem today or the practical problem – which is banks being insufficiently attentive and responsive to the needs of their customers. |
| Sorry Scott, but no banana. | Sorry Scott, but no banana. |
| Updated | Updated |
| at 3.22am BST | at 3.22am BST |
| 2.40am BST | 2.40am BST |
| 02:40 | 02:40 |
| A conversation that has just happened between myself and Magic Mike. | A conversation that has just happened between myself and Magic Mike. |
| KM: “You’ve gone all moody.” | KM: “You’ve gone all moody.” |
| MB: “I was so over the Blue Room I cannot tell you.” | MB: “I was so over the Blue Room I cannot tell you.” |
| KM: “Entirely understandable.” | KM: “Entirely understandable.” |
| PS: Aren’t we lucky Bowers is completely over the Blue Room? Now we have this. | PS: Aren’t we lucky Bowers is completely over the Blue Room? Now we have this. |
| While I’m posting dark and stormy press conferences, Donald Trump has just won the Republican primary in New York. | While I’m posting dark and stormy press conferences, Donald Trump has just won the Republican primary in New York. |
| 2.33am BST | 2.33am BST |
| 02:33 | 02:33 |
| Treasury to review the Kidman sale | Treasury to review the Kidman sale |
| Readers with me earlier today know the prime minister got a question about the Kidman sale on Adelaide radio this morning. Morrison told reporters just before he’s made an interim order to prevent it from proceeding for a period of 90 days from the date it was gazetted. | Readers with me earlier today know the prime minister got a question about the Kidman sale on Adelaide radio this morning. Morrison told reporters just before he’s made an interim order to prevent it from proceeding for a period of 90 days from the date it was gazetted. |
| This is what he said about that decision this morning. | This is what he said about that decision this morning. |
| This provides time for me to consider the national interest implications of this complex and sensitive acquisition. I intend to do this on the Kidman matter as I did on the previous consideration of the transaction. | This provides time for me to consider the national interest implications of this complex and sensitive acquisition. I intend to do this on the Kidman matter as I did on the previous consideration of the transaction. |
| National interest considerations of proposed transactions should not and will not be rushed on an important matter such as this. | National interest considerations of proposed transactions should not and will not be rushed on an important matter such as this. |
| I have today instructed treasury to put in place an independent and external review of the sale and tender process in relation to Kidman because I want to be absolutely confident when I finally consider this matter that Australians have had every opportunity to be participating in that process and so we’ll continue to work through that process. | I have today instructed treasury to put in place an independent and external review of the sale and tender process in relation to Kidman because I want to be absolutely confident when I finally consider this matter that Australians have had every opportunity to be participating in that process and so we’ll continue to work through that process. |
| I will not be rushed into this. I will make a careful consideration on these matters. Many of you know this is what I do and it is a very big transaction and it is important we do the right thing by the national interest and that’s what I intend to do. | I will not be rushed into this. I will make a careful consideration on these matters. Many of you know this is what I do and it is a very big transaction and it is important we do the right thing by the national interest and that’s what I intend to do. |
| (I’m sure it is a very complex decision that shouldn’t be rushed. I know the Nationals will have very strong views about it. I can also note that 90 days will also put the decision on the other side of the election.) | (I’m sure it is a very complex decision that shouldn’t be rushed. I know the Nationals will have very strong views about it. I can also note that 90 days will also put the decision on the other side of the election.) |
| 2.24am BST | 2.24am BST |
| 02:24 | 02:24 |
| Bill Shorten says Labor is not going to let go of this royal commission issue. A royal commission can get to the heart of the matter in terms of the facts, it can get to the bottom of a culture of arrogance, it can get to the bottom of whether banks put people or profits first. | Bill Shorten says Labor is not going to let go of this royal commission issue. A royal commission can get to the heart of the matter in terms of the facts, it can get to the bottom of a culture of arrogance, it can get to the bottom of whether banks put people or profits first. |
| Now, I’ll go back and clean up on Kidman and Co before I pick apart the implications of today’s developments on the banks. | Now, I’ll go back and clean up on Kidman and Co before I pick apart the implications of today’s developments on the banks. |
| 2.18am BST | 2.18am BST |
| 02:18 | 02:18 |
| Shorten is asked why he did nothing about the banks when he was an assistant treasurer in a Labor government. He says the government always wants to talk about the past. He wants to talk about the future. | Shorten is asked why he did nothing about the banks when he was an assistant treasurer in a Labor government. He says the government always wants to talk about the past. He wants to talk about the future. |
| (Except when he wants to talk about the past, but let’s not digress). | (Except when he wants to talk about the past, but let’s not digress). |
| 2.17am BST | 2.17am BST |
| 02:17 | 02:17 |
| Bill Shorten | Bill Shorten |
| Mr Turnbull has to explain to the victims of financial frauds, to the victims of poor banking culture, why he is so desperate not to expose the truth in banking. | Mr Turnbull has to explain to the victims of financial frauds, to the victims of poor banking culture, why he is so desperate not to expose the truth in banking. |
| Now, banks are very powerful institutions and they play a very important role and we want to have the best possible banking sector – but when an individual consumer has a complaint or concern it’s a David and Goliath battle. | Now, banks are very powerful institutions and they play a very important role and we want to have the best possible banking sector – but when an individual consumer has a complaint or concern it’s a David and Goliath battle. |
| What levels the playing field is the truth, and nothing less than the truth will suffice, and the best way to get to the truth about the extent of widespread problems in the banking industry to have a royal commission. | What levels the playing field is the truth, and nothing less than the truth will suffice, and the best way to get to the truth about the extent of widespread problems in the banking industry to have a royal commission. |
| 2.15am BST | 2.15am BST |
| 02:15 | 02:15 |
| "Mr Turnbull today has sold out Australians in favour of the big banks" | "Mr Turnbull today has sold out Australians in favour of the big banks" |
| Morrison then works through the government’s position on the Kidman and Co sale, which is interesting, and I’ll come back to it, but I need to press on just for a moment. | Morrison then works through the government’s position on the Kidman and Co sale, which is interesting, and I’ll come back to it, but I need to press on just for a moment. |
| The Labor leader Bill Shorten and his deputy Tanya Plibersek are outside a legal centre in inner city Sydney that deals with a lot of clients with claims in financial services. they are speaking to reporters. | The Labor leader Bill Shorten and his deputy Tanya Plibersek are outside a legal centre in inner city Sydney that deals with a lot of clients with claims in financial services. they are speaking to reporters. |
| Bill Shorten | Bill Shorten |
| Mr Turnbull today has sold out Australians in favour of the big banks. He’s just restoring the funding they cut. | Mr Turnbull today has sold out Australians in favour of the big banks. He’s just restoring the funding they cut. |
| Updated | Updated |
| at 2.25am BST | at 2.25am BST |
| 2.11am BST | 2.11am BST |
| 02:11 | 02:11 |
| Q: Do you regret in retrospect trying to undo the consumer protection laws that Labor put in? | Q: Do you regret in retrospect trying to undo the consumer protection laws that Labor put in? |
| Kelly O’Dwyer | Kelly O’Dwyer |
| That’s simply - with the greatest of respect ... that’s simply not correct. We haven’t tried to undo consumer protections. What we are doing today is we are strengthening consumer protections. | That’s simply - with the greatest of respect ... that’s simply not correct. We haven’t tried to undo consumer protections. What we are doing today is we are strengthening consumer protections. |
| 2.10am BST | 2.10am BST |
| 02:10 | 02:10 |
| Q: There’s lot of people out there who hate the banks because of what has happened to them with scandals, they’ve been ripped off on insurance and so forth. What do you say to those people that - can you give a guarantee that these changes will put an end to this sort of practice? How sure can you be? | Q: There’s lot of people out there who hate the banks because of what has happened to them with scandals, they’ve been ripped off on insurance and so forth. What do you say to those people that - can you give a guarantee that these changes will put an end to this sort of practice? How sure can you be? |
| Scott Morrison | Scott Morrison |
| For those people who have been affected by dodgy dealings, by fraudulent conduct, by malpractice and misconduct in the financial services industry, we are puttingy ou front and centre in our response. | For those people who have been affected by dodgy dealings, by fraudulent conduct, by malpractice and misconduct in the financial services industry, we are puttingy ou front and centre in our response. |
| We are making sure that the consumer is front and centre, that you will be dealt with compassionately and you will be dealt with effectively so that you will be able to move on with your lives. | We are making sure that the consumer is front and centre, that you will be dealt with compassionately and you will be dealt with effectively so that you will be able to move on with your lives. |
| But to be brutally honest, we want to make sure people are not put in that position. | But to be brutally honest, we want to make sure people are not put in that position. |
| 2.08am BST | 2.08am BST |
| 02:08 | 02:08 |
| Morrison is asked whether this user pays applies in perpetuity. It does. | Morrison is asked whether this user pays applies in perpetuity. It does. |
| That would be user-paid, yes. That’s the whole point of this transition. This puts Asic on a much more sustainable footing. | That would be user-paid, yes. That’s the whole point of this transition. This puts Asic on a much more sustainable footing. |
| 2.07am BST | 2.07am BST |
| 02:07 | 02:07 |
| Morrison again draws a contrast between the government’s response and Labor’s response. Full beat down follows. | Morrison again draws a contrast between the government’s response and Labor’s response. Full beat down follows. |
| The financial systems inquiry report today shows is a government that is focused on the practical issues that are addressing the real concerns of people who are being affected by what has been happening in particular cases in our banking and financial system. Now the alternative to that is a leader of the opposition who is cynically exploiting the concerns and fears of Australians when it comes to how that’s been impacting on their daily lives. | The financial systems inquiry report today shows is a government that is focused on the practical issues that are addressing the real concerns of people who are being affected by what has been happening in particular cases in our banking and financial system. Now the alternative to that is a leader of the opposition who is cynically exploiting the concerns and fears of Australians when it comes to how that’s been impacting on their daily lives. |
| He’s politicising their pain and I think this is a reckless way for a leader of the opposition to behave who pretends to think that he can be responsible for a $1.6 trillion economy. | He’s politicising their pain and I think this is a reckless way for a leader of the opposition to behave who pretends to think that he can be responsible for a $1.6 trillion economy. |
| The motive of Bill Shorten is clear here. His focus is not about getting outcomes for people affected by what’s happening in the banking and financial industry, his motive is about getting a political outcome for one person: Bill Shorten. | The motive of Bill Shorten is clear here. His focus is not about getting outcomes for people affected by what’s happening in the banking and financial industry, his motive is about getting a political outcome for one person: Bill Shorten. |
| (I’ll pick this apart after the announcement.) | (I’ll pick this apart after the announcement.) |
| 2.04am BST | 2.04am BST |
| 02:04 | 02:04 |
| Q: Treasurer, have you consulted the banks on these changes and are they supportive? | Q: Treasurer, have you consulted the banks on these changes and are they supportive? |
| Morrison gives a very long answer which I’ll cut short to the relevant word. Yes, is the answer. | Morrison gives a very long answer which I’ll cut short to the relevant word. Yes, is the answer. |
| Q: Did you phone the CEOs of the banks this week or your office? And on the idea of the tribunal, one of the problems is currently that many dissatisfied customers say the banks string their complaints out too long, that they effectively hope they run out of money or, quite frankly, die before they solve things. Would you look at giving this tribunal (stronger powers)? | Q: Did you phone the CEOs of the banks this week or your office? And on the idea of the tribunal, one of the problems is currently that many dissatisfied customers say the banks string their complaints out too long, that they effectively hope they run out of money or, quite frankly, die before they solve things. Would you look at giving this tribunal (stronger powers)? |
| Morrison says it’s everyone’s job to engage with all the stakeholders in the sector and you can be assured I am regularly put things to the banks in terms of they need to do. | Morrison says it’s everyone’s job to engage with all the stakeholders in the sector and you can be assured I am regularly put things to the banks in terms of they need to do. |
| I’m doing my job when it comes to doing those things. | I’m doing my job when it comes to doing those things. |
| On the tribunal, Kelly O’Dwyer says: | On the tribunal, Kelly O’Dwyer says: |
| We want to make sure that the consumer is at the heart of that and that is exactly why we are taking the time to work through exactly what powers will be needed and make sure that the entire financial services industry is covered and that there are no people who are falling through the cracks. | We want to make sure that the consumer is at the heart of that and that is exactly why we are taking the time to work through exactly what powers will be needed and make sure that the entire financial services industry is covered and that there are no people who are falling through the cracks. |
| 1.58am BST | 1.58am BST |
| 01:58 | 01:58 |
| The deeply obvious question that arises from outsourcing the funding of the regulator to the banks. | The deeply obvious question that arises from outsourcing the funding of the regulator to the banks. |
| Q: Treasurer, you say the banks will pay but won’t the banks just pass this on in higher fees and charges so it ends up being the customers, the people you’re trying to protect, who end up paying? | Q: Treasurer, you say the banks will pay but won’t the banks just pass this on in higher fees and charges so it ends up being the customers, the people you’re trying to protect, who end up paying? |
| Morrison says he doesn’t believe that will be the case. | Morrison says he doesn’t believe that will be the case. |
| I would be furious if I thought this was being passed on by the banks and you can be absolutely assured they will be .. they’re getting that message from me, and in fact would already have got that message from me. | I would be furious if I thought this was being passed on by the banks and you can be absolutely assured they will be .. they’re getting that message from me, and in fact would already have got that message from me. |
| (Fingers have been waggled at the banks. So noted. I’d have a question about capture too if the banks are paying for the regulator, but sadly I’m not there, I’m talking to you good people.) | (Fingers have been waggled at the banks. So noted. I’d have a question about capture too if the banks are paying for the regulator, but sadly I’m not there, I’m talking to you good people.) |
| 1.54am BST | 1.54am BST |
| 01:54 | 01:54 |
| Q: Doesn’t this suite of measures amount to an admission that Asic hasn’t been up to the task? | Q: Doesn’t this suite of measures amount to an admission that Asic hasn’t been up to the task? |
| Scott Morrison | Scott Morrison |
| What it amounts to is we have always been conscious of the need to strengthen and improve what is happening in Asic. | What it amounts to is we have always been conscious of the need to strengthen and improve what is happening in Asic. |
| Morrison is asked when he got the recommendations he’s acting on today – before or after the debate Labor sparked about the royal commission? He doesn’t answer that directly. | Morrison is asked when he got the recommendations he’s acting on today – before or after the debate Labor sparked about the royal commission? He doesn’t answer that directly. |