Senator REYNOLDS (Western Australia) (15:32): I too rise to take note of the ministers’ answers. The hypocrisy that is wafting over to this side of the chamber is almost overwhelming. Those opposite, who are now so stridently calling for a royal commission into these matters, are exactly the same members who only recently said that this royal commission was not necessary and have just been spending all morning saying how much they do not agree with royal commissions.

This government absolutely recognises that Australian banks and banking executives have not always lived up to the standards expected by our community. That is absolutely right, but this government will not be appointing a royal commission into banking and financial services. Why is that? Because we already have organisations with the same power, if not more power, as a royal commission to investigate, prosecute and act on these matters. What those opposite are calling for is yet another review and inquiry which will take hundreds of millions of dollars of taxpayer money and another three years. If anything demonstrates the difference in policy and approach, on this and many other issues, between the two sides of this chamber, I think this is it.

The royal commission has no power to enforce the law, whether through taking prosecution action against a person or body or by making a finding of breach of the law. ASIC, on the other hand, has strong powers to compel a person to answer questions under oath, compel the production of documents, seek search warrants, conduct investigations in a public forum, and then use the information in prosecutions—arguably much stronger than anything the royal commission could ever do, since it cannot investigate and take actions that lead directly to prosecution.

In fact, in direct contradiction to what those opposite have asserted, ASIC have commenced legal proceedings already against banks which are alleged to have engaged in market manipulation during the period from 2010 to 2012. They have commenced an investigation into the allegations surrounding CommInsure and the broader life insurance sector, and they are also undertaking investigations into the conduct of large financial advice firms under their wealth management project. Those opposite are now suddenly, out of the blue, calling for a royal commission which would grind this all to a halt instead of allowing ASIC to continue the investigations and possible prosecutions which would arise from those investigations. We absolutely need to continue to ensure that ASIC is operating effectively. This is why the government has commissioned a review to consider its capabilities and why we are considering the appropriateness of ASIC’s funding to ensure it can adequately investigate and prosecute any findings of wrongdoing—which is already underway without a royal commission.

I would just like to remind the chamber that Labor were in government for six years and never once—not once— looked at the Australian financial industry. In fact, in June last year Labor voted to reject a Greens Senate motion to hold a royal commission into the financial sector—exactly what they are calling for today. But this, as we all know, is just a cheap but potentially very damaging stunt which could actually hurt the country a lot and put a lot more uncertainty into the financial sector. We all know it is about the classic Labor tactic of diversion: ‘Let’s not have a look at the royal commission we already have and the findings of endemic corruption, bullying and a whole raft of unlawful activity that’s been found yet again arising in the building and construction industry, mostly from the CFMEU.’ Over 100 CFMEU officials at the moment are up before the courts on charges relating to engaging with bikies, enforcement, criminal activity of all types, kickbacks and standover tactics, right of entry breaches, blockading of sites, unlawful industrial action and—probably most of all for the nearly one million workers in the construction industry today—abuse, intimidation and revolting conduct that would never be acceptable in any other workplace in this country. When you have a look at what is before the courts and what has come out in the royal commission report, it is no wonder the Labor Party do not want anybody in this chamber and certainly anybody in the public really looking at the findings of the trade union royal commission. So this is classic Labor:

‘Don’t look at that royal commission; let’s have another one instead.’ (Time expired)