Joyce admits he was ‘wrong’ to oppose banking inquiry

BARNABY Joyce says the “beyond disturbing” revelations uncovered in the banking inquiry proves he was wrong to oppose the probe.

THE government has become a victim of its own royal commission into improper practices in the banking and finance industries.

It now is facing suggestions it’s delay in launching the inquiry — rejecting calls for it from Coalition MPs and wronged consumers — meant a delay in protecting vulnerable finance industry customers.

These customers might have been casualties of the unethical practices the inquiry has been so successful in exposing, such as being made to pay fees for non-existent services.

The issue was underlined by a confession form former deputy prime minister and Nationals leader Barnaby Joyce, who has announced a change of position.

“In the past I argued against a Royal Commission into banking. I was wrong,” he said in a tweet late Wednesday night.

“What I have heard is so far is beyond disturbing.”

Former Australian Deputy Prime Minister Barnaby Joyce says he was wrong to oppose the banking Royal Commission.

His statement highlights that the Coalition rejected multiple calls for an inquiry for close to four years, and could be interpreted as an act of mischief aimed at Prime Minister Malcolm Turnbull.

And Labor is contesting the claims by ministers that the government had improved the royal commission by rejecting the Opposition’s version and expanding its scope from just banks to include the financial advice sector.

Financial Services Minister Kelly O’Dwyer today acknowledged “very disturbing revelations” and backed a warning from Treasurer Scott Morrison that executives might face jail terms.

“But it’s fair to say that giving the commission broad terms of reference, giving it full autonomy to go after bad misconduct and to look into that right across the financial services sector was absolutely the right thing to do,” Ms O’Dwyer told ABC radio.

She said Labor had wanted “a very narrow” inquiry and the revelations showed the government had made the right decision.

However, the Opposition first proposed an inquiry “into misconduct in the banking and financial services industry” on April 8, 2016 -— 740 days ago.

The Royal Commission was created last December and had its first public hearings on March 13.

“There are literally tens of thousands of victims [of the banking and finance industry] if not more. Enough is enough,” Opposition Leader Bill Shorten said in April 2016.

This week, Mr Shorten said Mr Turnbull “owes Australians an apology”.

“The Royal Commission is discovering criminal activity. But if the Prime Minister had his way, there would be no Royal Commission, and none of this activity would have been discovered or exposed,” Mr Shorten said on Wednesday.

Shadow minister for manufacturing Nick Champion said today the government “had to be dragged kicking and screaming to this Royal Commission”.

He told Sky News that Labor “basically pushed the government into having it”.

“The Parliament in the end provided that impetus to the government to have this Royal Commission,” he said.

“Obviously we’re disturbed by the evidence given. Ultimately we’ll have to respond to the Royal Commissions findings.

“The key here though is to make sure that our financial institutions are aware of the reputational risks and aware of the very serious legal risks that they run if they err on the wrong side of the law.

Originally published as Joyce admits he was ‘wrong’ to oppose banking inquiry