It has become clear that Labor is gearing up to put forward legislation (or a motion) in support of a royal commission into the banks. It will present an awkward start to the return of parliament for Malcolm Turnbull.
With the Coalition holding only 76 seats in the House of Representatives, it can ill-afford dissent from within its ranks, lest the Prime Minister be left stranded without a majority. Such a defeat would all but end his prime ministership.
On Sunday on Sky News, deputy Labor leader in the Senate Stephen Conroy said he would like to see Labor pursue such a strategy, and yesterday fellow Labor frontbencher Brendan O’Connor reiterated those remarks. Senator Sam Dastyari told the ABC that he favoured Labor pursuing a royal commission, but added that the timing and tactical decision-making on such a move was yet to be settled. While royal commissions are formally approved by the executive, not parliament, a House of Representatives vote in favour of one into the banks would do untold damage to Turnbull.
It would potentially pit Coalition backbenchers who have long criticised the banks, some even supporting a royal commission, against their leader, who is holding the line against Labor’s proposal. Most crossbenchers are likely to support a call for a royal commission.
If Coalition critics don’t back Labor, notwithstanding the hint of a stunt involved, they will be accused of being all talk and no action when it comes to the banks, thereby risking their own credibility on the issue.
As much as I loathe the inflated “us verses them” rhetoric Bill Shorten is using to bash the banks, and in turn wedge Turnbull, it is proving effective politicking. The sure sign that Coalition strategists are worried about the issue was on display when the PM and his Treasurer recently announced that bank CEOs would be compelled to every year face a parliamentary committee. But the move looks weak and certainly hasn’t quashed Labor’s pursuit of a royal commission.
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