Labor-controlled senate committee report into banking industry ‘disgraceful’ and a ‘joke’

A report by a Labor-controlled senate committee into consumer protection in the banking industry that took two years is slammed as “disgraceful’’.

Labor Senator Chris Ketter.

A report by a Labor-controlled senate committee into consumer protection in the banking industry that took two years to hand down has been slammed as “disgraceful” and a “joke”.

Despite the input of almost 150 submissions and the holding of three public hearings for the Senate Economics References Committee’s review into the regulatory framework for the protection of consumers in the banking, insurance and financial services sector, Labor has made no recommendations to improve any regulations in the financial system for the benefit of consumers.

Instead of providing proposals to fix the scandal-ridden sector, Labor’s report, steered by Queensland Senator Chris Ketter, makes just three recommendations: extend the banking royal commission; force the government to respond to an inquiry into impaired consumer loans; and consider increased funding for financial counselling services.

The royal commission has considered more than 10,000 submissions made by victims of rogue financial outfits and Australia’s largest institutions.

It’s the latest opportunity the federal opposition has squibbed to put forward recommendations to improve financial system regulations, after Labor was accused of a “blunder” in its submission responding to the interim report of the royal commission.

Labor largely ignored the instructions of banking royal commissioner Kenneth Hayne for submissions in response to his interim report, opting instead to promote its own banking victim “roundtable” rather than answer policy questions put forward by the former High Court judge.

“After an inquiry lasting two years, after taking 147 submissions from a range of people, and after having held three public hearings, all at the taxpayer’s expense, this chair’s report is a joke,” Greens senator Peter Whish-Wilson said, in the party’s dissenting report.

“Three recommendations, none of which even hint at changes to the way the financial service industry is structured or regulated. This chair’s report is disrespectful to those who took the time to participate in this inquiry and it reflects poorly on the Australian Senate and the otherwise well respected committee system,” Mr Whish-Wilson said.

“Bank bashing is not an end unto itself. Policy reform is the goal. And this Chair’s report fails terribly by that measure,” he said.

The royal commission has considered more than 10,000 submissions made by victims of rogue financial outfits and Australia’s largest institutions, and the government has routinely said it would grant Commissioner Hayne more time if he asked for it. Mr Hayne in his interim report said the inquiry must proceed as quickly as possible.

Liberal Senator Jane Hume accused Labor of “hypocrisy” because they opposed a broad-based financial system inquiry when they were in government.

“The Commissioner has confirmed that every submission the Royal Commission received has been read and is being considered as part of his final recommendations,” Ms Hume said in her dissenting report. “Again, the Commissioner has absolute discretion as to how he is to receive evidence and Coalition Senators reject any suggestion that he has not considered the written submissions or that he has somehow erred in the way that he has decided to conduct the Commission,” she said.