Malcolm Turnbull holds firm against calls for bank probe

Malcolm Turnbull is holding firm against moves by the Nationals for a banking inquiry.

LNP senator Barry O'Sullivan.

Malcolm Turnbull is holding firm against moves by the Nationals for a banking inquiry as cross-party support mounted for the probe pushed by renegade Liberal National Party senator Barry O’Sullivan.

The Prime Minister has ­spoken directly to Senator O’Sullivan but no compromise had been reached last night, with ­Nationals MPs Llew O’Brien, ­George Christensen and John “Wacka” Williams supporting an inquiry.

The Greens held negotiations with Senator O’Sullivan yesterday over his plan to introduce a bill into the Senate following the conclusion of the debate on same-sex marriage.

Greens Leader Richard Di ­Natale said his party would only support a “genuine inquiry” and would not support a bill intended purely as a weapon to damage Mr Turnbull.

“We need to make sure ... that we have a genuine inquiry. Not a mickey mouse inquiry. We’re now in negotiations with the Nationals,” Senator Di Natale said. “I just say to Barry O’Sullivan, if this is an opportunity for you to go after Malcolm Turnbull but not to go after the banks, to let the banks off the hook, then we don’t want any part of it.”

The Australian understands Senator O’Sullivan was yesterday making adjustments to his bill to reflect input from a range of other parties to his proposed banking inquiry.

He is expected to give notice today of his intention to move a motion giving him the ability to introduce the bill once the debate on same-sex marriage ends.

The Nationals are divided on the proposed banking inquiry, with senior ministers including Victorian Infrastructure Minister Darren Chester and Queensland Resources Minister Matt ­Canavan speaking out against it.

The issue is yet to be thrashed out in the Nationals Party room, which meets on Monday, with Barnaby Joyce indicating he is willing to accommodate a shift in position to back-in Senator O’Sullivan’s commission of ­inquiry.

If the bill goes to the House of Representatives, it will only take two or three Coalition MPs to cross the floor to pass the O’Sullivan bill with Mr Christensen and Mr O’Brien already flagging their intention to do so.

Pressed yesterday on whether he was considering a change in position to take ownership of an inquiry, Mr Turnbull was defiant.

“We have made it clear that we are not going to establish a royal commission and the reason for that is simply because we want to get on with the job now,” he said.

Foreign Minister Julie Bishop said a commission of inquiry into the banks would give “false hope” to victims but added that it was “a ­matter for the cabinet and the ­party room to discuss” whether the government would reverse its opposition to the probe.

Ms Bishop said an inquiry could take “years” and would only make ­recommendations to the ­regulator on action that should be taken to curb indiscretions in the financial services sector.

Bill Shorten was yesterday ­preparing for the prospect of a government backflip on its ­support for a banking inquiry, ­accusing government MPs of “running around like a bunch of headless chooks.”