Morrison slams Shorten’s call for royal commission into banks

Scott Morrison has lashed Bill Shorten’s “reckless” urging of the government to consider a royal commission into banks.

Scott Morrison said Australia needed a “proportional response” to misconduct in the banking sector.

Treasurer Scott Morrison has caricatured Bill Shorten as standing up “in his ill-fitting suit, puffing his chest up” over proposals for a royal commission into the banking sector, noting Labor opposed launching such an inquiry last June.

Mr Morrison lashed Mr Shorten’s “reckless” urging of the government to consider launching a royal commission into the banking sector, warning the Opposition Leader’s rhetoric could spook foreign investors.

However, Mr Shorten found some support with Liberal MP Warren Entsch backing the call for the royal commission.

Mr Shorten yesterday expressed surprise that the Coalition was so eager to rule out the idea, following a series of scandals over ruinous financial advice and alleged market manipulation.

Labor’s Senate leader Penny Wong attacked Mr Morrison over his caricature of Mr Shorten.

“Australia’s Treasurer. So often angry. So often throwing insults. But has no economic plan,” she tweeted.

Mr Morrison noted opposition senators last June joined the Coalition to block a Greens-sponsored motion calling for a royal commission into the financial sector.

He told ABC radio’s Fran Kelly: “He voted against it a year ago, Fran, but apparently in the eve of an election when there’s a few reports about banks, Bill Shorten is up there in his ill-fitting suit, puffing his chest up, and saying we need to thump the table. This is just classic political distraction.

“Think about people offshore. What sort of message do you think Bill Shorten saying there needs to be a royal commission into the banks sends to the international community about confidence in the Australian banking system?”

The Greens’ Senate motion was supported only by Nationals senator John Williams and independents Nick Xenophon and Glenn Lazarus.

Mr Morrison said Australia needed a “proportional response” to misconduct in the banking sector, insisting current regulators were “a tough cop on the beat”.

“We have a very well-regulated banking and financial system. In fact, Fran, you’ll know that it was the strength of our financial and banking system that was critical to way the Australian economy performed during the global financial crisis,” he said.

Mr Shorten yesterday criticised the Coalition for talking tough about bank culture while shying away from practical steps to ensure cultural change.

“I think it’s frankly quite contradictory. Mr Turnbull is there giving some sort of lecture to the banks, and then he wants to propose corporate tax cuts which the Australia Institute estimates would give a $9 billion windfall to the banks?” he said.

Mr Shorten accused the government of “selective hearing” after it zealously launched a royal commission into trade union governance.

“If there was a building worker, a tradie, then the government is over them like a rash examining their behaviour.

“But the top end of town, the banks, the government is so quick out of the blocks to rule out a royal commission, it’s breathtaking.”