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| Bob Katter blasts Warren Entsch over bank royal commission back-flip Bob Katter blasts Warren Entsch over bank royal commission back-flip | |
| (4 months later) | |
| Bob Katter has blasted Liberal MP Warren Entsch over a back-flip on the proposed bank royal commission, following Entsch’s announcement that he now favours an independent compensation tribunal for bank customers. | Bob Katter has blasted Liberal MP Warren Entsch over a back-flip on the proposed bank royal commission, following Entsch’s announcement that he now favours an independent compensation tribunal for bank customers. |
| Labor is continuing to push for a royal commission and has said the new proposal is evidence of government division over the regulation of the financial sector. | Labor is continuing to push for a royal commission and has said the new proposal is evidence of government division over the regulation of the financial sector. |
| Backbench Coalition MPs have presented several reform ideas for the banking sector in response to calls for a royal commission, including the tribunal and tighter rules around credit card late fees. | Backbench Coalition MPs have presented several reform ideas for the banking sector in response to calls for a royal commission, including the tribunal and tighter rules around credit card late fees. |
| As first reported in Guardian Australia on 2 August, Entsch has backtracked from his earlier support of a bank royal commission in favour of an independent tribunal that can grant victims compensation. | As first reported in Guardian Australia on 2 August, Entsch has backtracked from his earlier support of a bank royal commission in favour of an independent tribunal that can grant victims compensation. |
| Entsch saida tribunal would be better than a royal commission that could go on for years. | Entsch saida tribunal would be better than a royal commission that could go on for years. |
| “The more I consider it, the less chance I think there is victims will get any sort of satisfaction in the short term,” he said. “Labor don’t know the terms of reference for a royal commission, I’ve seen nothing there that will put victims in front of a panel, in a shorter period of time.” | “The more I consider it, the less chance I think there is victims will get any sort of satisfaction in the short term,” he said. “Labor don’t know the terms of reference for a royal commission, I’ve seen nothing there that will put victims in front of a panel, in a shorter period of time.” |
| On Tuesday Katter said he was disappointed at Entsch’s backflip and that he continued to support a royal commission | On Tuesday Katter said he was disappointed at Entsch’s backflip and that he continued to support a royal commission |
| “Entsch is dogging it,” he said. “Entschy, I plead with you to reconsider this idea of the tribunal. We need the royal commission.” | “Entsch is dogging it,” he said. “Entschy, I plead with you to reconsider this idea of the tribunal. We need the royal commission.” |
| On Tuesday the shadow financial services minister, Katy Gallagher, said she had not seen any details of Entsch’s proposal but she took it as a sign “there are divisions within the government about Malcolm Turnbull’s response to the banking industry”. | On Tuesday the shadow financial services minister, Katy Gallagher, said she had not seen any details of Entsch’s proposal but she took it as a sign “there are divisions within the government about Malcolm Turnbull’s response to the banking industry”. |
| Gallagher said the prime minister had taken a “nothing to see here” attitude to bank misconduct, but Liberal members were calling for a “tribunal that goes further, which shows the legitimate concerns within the government benches about the weak response from Malcolm Turnbull on this issue”. | Gallagher said the prime minister had taken a “nothing to see here” attitude to bank misconduct, but Liberal members were calling for a “tribunal that goes further, which shows the legitimate concerns within the government benches about the weak response from Malcolm Turnbull on this issue”. |
| She said Labor’s position was to set up a royal commission, which could consider ways to compensate victims in addition to systemic issues. Compensation should not be considered “in isolation”. | She said Labor’s position was to set up a royal commission, which could consider ways to compensate victims in addition to systemic issues. Compensation should not be considered “in isolation”. |
| “We know that there are some people on the government benches who want to see [a royal commission] ... we will continue to argue for a royal commission and work with them.” | “We know that there are some people on the government benches who want to see [a royal commission] ... we will continue to argue for a royal commission and work with them.” |
| Entsch said there was “no guarantee” a royal commission would resolve historic cases and provide justice for victims battling for a decade. | Entsch said there was “no guarantee” a royal commission would resolve historic cases and provide justice for victims battling for a decade. |
| “Their only option is to go to lawyers [to sue the banks] but when they only have the clothes on their back they can’t match the spending power of the banks. | “Their only option is to go to lawyers [to sue the banks] but when they only have the clothes on their back they can’t match the spending power of the banks. |
| “If the disputes drag on, the banks’ problem goes away because [victims] die. Their arguments die with them - that’s why we need to establish an independent tribunal.” | “If the disputes drag on, the banks’ problem goes away because [victims] die. Their arguments die with them - that’s why we need to establish an independent tribunal.” |
| Entsch’s proposal originated in a report in May from a Senate committee inquiry into customer loans that recommended the banking industry be required to fund a tribunal if financial institutions did not appoint independent experts to consider restitution for customers who feel they have been ripped-off. | Entsch’s proposal originated in a report in May from a Senate committee inquiry into customer loans that recommended the banking industry be required to fund a tribunal if financial institutions did not appoint independent experts to consider restitution for customers who feel they have been ripped-off. |
| Entsch said the tribunal should have the power to force banks to pay compensation to their customers and penalties should be set at triple the amount of damage to provide a deterrent. | Entsch said the tribunal should have the power to force banks to pay compensation to their customers and penalties should be set at triple the amount of damage to provide a deterrent. |
| One third of the penalty would go to customers and the other two thirds would pay for the tribunal. | One third of the penalty would go to customers and the other two thirds would pay for the tribunal. |
| He said the tribunal needed to be independent of the banks: “I don’t trust them.” | He said the tribunal needed to be independent of the banks: “I don’t trust them.” |
| Entsch’s proposal for an independent compensation tribunal has received support from Nationals senator John Williams, who had also previously called for a royal commission. | Entsch’s proposal for an independent compensation tribunal has received support from Nationals senator John Williams, who had also previously called for a royal commission. |
| The Liberal MP Craig Kelly told Guardian Australia he was “sympathetic to the proposal on the basis that for a consumer to take a bank to court is virtually impossible, because the bank can bleed them out with legal fees”. | The Liberal MP Craig Kelly told Guardian Australia he was “sympathetic to the proposal on the basis that for a consumer to take a bank to court is virtually impossible, because the bank can bleed them out with legal fees”. |
| “It has to be a low-cost or no-cost model, like state tribunals, so people aren’t bluffed out of starting a case because they’re fearful of having hundreds of thousands of dollars of costs against them.” | “It has to be a low-cost or no-cost model, like state tribunals, so people aren’t bluffed out of starting a case because they’re fearful of having hundreds of thousands of dollars of costs against them.” |
| Kelly also put credit card late fees on the agenda as another area of reform that parliament should consider looking at without a wider inquiry. | Kelly also put credit card late fees on the agenda as another area of reform that parliament should consider looking at without a wider inquiry. |
| He said the high court had recently weakened consumer protections against unreasonable late fees, when it rejected a class action against ANZ for charging late fees of $35. | He said the high court had recently weakened consumer protections against unreasonable late fees, when it rejected a class action against ANZ for charging late fees of $35. |
| Kelly said it was “plain rip-off” and should be unlawful to charge penalty fees far in excess of the actual cost of late payments, which could be as little as $1 or $2. | Kelly said it was “plain rip-off” and should be unlawful to charge penalty fees far in excess of the actual cost of late payments, which could be as little as $1 or $2. |
| He said the court’s decision expanded the scope of what could be considered a reasonable cost when calculating late fees, advantaging banks over small business and retail consumers. | He said the court’s decision expanded the scope of what could be considered a reasonable cost when calculating late fees, advantaging banks over small business and retail consumers. |
| “I believe there’s ground now to codify the common law – law of penalties needs to be tightened up to put some type of cap on what a bank could charge,” he said. | “I believe there’s ground now to codify the common law – law of penalties needs to be tightened up to put some type of cap on what a bank could charge,” he said. |
| Kelly said there was no need for a royal commission to give impetus to the push because “all the detail and evidence is there”. | Kelly said there was no need for a royal commission to give impetus to the push because “all the detail and evidence is there”. |
| “It’s now up to parliament to act, rather than have a long-winded royal commission.” | “It’s now up to parliament to act, rather than have a long-winded royal commission.” |