Barnaby Joyce open to Nationals revolt on bank inquiry

Barnaby Joyce has signalled a push by the Nationals to defy the Turnbull cabinet and embrace a banking inquiry.

Barnaby Joyce at Bendemeer in the New England electorate. Picture: Peter Lorimer

Barnaby Joyce has signalled a push by the Nationals to defy the Turnbull cabinet and embrace a banking inquiry — a move that could force an embarrassing policy backflip or risk leaving the government humiliated on the floor of parliament.

The Australian understands Mr Joyce believes the Nationals will “most likely” decide to support Queensland senator Barry O’Sullivan’s bill for a commission of ­inquiry at a partyroom meeting next week. Support for a banks probe would split the Coalition and increase pressure on Malcolm Turnbull to take ownership of an inquiry or face the prospect of ­Coalition MPs crossing the floor and voting with Labor and crossbench MPs.

Mr Joyce, who is campaigning to reclaim the northern NSW seat of New England at a by-election on Saturday after being found ineligible to sit in parliament following revelations he was a dual New Zealand citizen, yesterday entertained the prospect of the Nationals switching positions to support a banks inquiry.

The sidelined Nationals leader said the party was “only too willing” to consider issues such as a banking inquiry. “It is always the right of the party room to bring up these issues,” he said yesterday.

Others in the Nationals — including Resources Minister Matt Canavan — have made it clear they will not support a banks inquiry. The shift in position by some senior Nationals MPs comes after the Liberal National Party’s poor performance at the Queensland election, when it lost votes to One Nation and Katter’s Australian Party. Queensland lower house MPs George Christensen and Llew O’Brien, as well as several others, are expected to support Senator O’Sullivan’s bill when it is raised at next Monday’s partyroom meeting.

Mr O’Brien, who replaced former leader Warren Truss in the seat of Wide Bay at last year’s election, yesterday confirmed to The Australian he intended to support Senator O’Sullivan’s bill in the lower house, but would hold further discussions with colleagues.

“I am respecting the party process and will be speaking to my colleagues in the National Party,” Mr O’Brien said. “But obviously consideration has been given to my input to this bill. And I am looking favourably on it.”

Mr O’Brien had asked Senator O’Sullivan to make an addition to the terms of reference for the ­inquiry to ensure people dealing with mental health issues could not be discriminated against — a request that was accommodated. Mr O’Brien’s amendment — ­obtained by The Australian — states that the inquiry will examine the “use by banking, insurance, superannuation and financial services providers of issues relating to the mental health of consumers in order to deny liability to such consumers or limit their rights”.

The Prime Minister strongly denied that desire for a banking royal commission was a factor in the poor performance of the LNP in the Queensland election, which recorded a swing against it of close to 8 per cent.

“That was not even remotely an issue in the Queensland election,” Mr Turnbull said. “I think the ­election was fought very much on state issues between state leaders and state parties.”

Senator O’Sullivan was holding meetings yesterday in a bid to secure support and was expected to give notice today of his intention to introduce the bill tomorrow for debate as soon as the same-sex marriage legislation clears the Senate. His office lodged a “contingency motion” with the Senate Table Office yesterday afternoon which would, if successful, allow Senator O’Sullivan to suspend standing orders once the debate on same-sex marriage was over to ensure his banking inquiry bill could be considered.

“The community response to our proposal clearly justifies our position,” Senator O’Sullivan said.

Bill Shorten told ABC radio yesterday that Labor would “work seriously and constructively with anyone — and that includes Senator O’Sullivan — who wants to see a reform in the banking sector”.

“Too many farmers have had their loans foreclosed by banks with harsh lending practices, too many small businesses have been treated unfairly ... Why is Mr Turnbull so determined to protect his friends in the banks?” the Opposition Leader said.

Victorian Nationals MP ­Andrew Broad did not rule out support for a banking inquiry, but said he would wait to hear what his colleagues said when they met next week.

NSW Nationals senator John Williams said he would support a banking inquiry and indicated that the government should take Senator O’Sullivan’s push seriously.

“Look, I called for a royal commission (into the banks) many years ago,” Senator Williams told Sky News. “You can’t push Barry around much, I can assure you.”

Queensland Nationals MP Michelle Landry, who holds the marginal seat of Capricornia, said she was not prepared to cross the floor to support a banking inquiry, but said it needed to be thrashed out by the partyroom. “I would need to wait and see what is on the table,” she said. “At this stage, I’m not in favour of a banking inquiry. It’s a long drawn-out process and the only ones who would make money out of it would be the solicitors. But I think it is something we would need to discuss in the National partyroom. It’s not something I would be crossing the floor on.”

Other Nationals MPs were privately furious with Senator O’Sullivan and claimed his bill did not have majority support in the party­room, although they conceded it would only take a few ­Coalition MPs to cross the floor to damage the government.

Labor has 69 lower house seats out of a total of 150 and, with the support of all five crossbenchers, would command 74 votes in the chamber. To suspend standing orders and force a vote on Senator O’Sullivan’s bill, Labor would still need to obtain an “absolute majority” of 76 seats even if the numbers in the lower house were temporarily reduced to 148 given the by-elections Mr Joyce and Sydney Liberal John Alexander face.