Malcolm Turnbull has admitted a banking royal commission two years ago would have been a better move politically.
Mr Turnbull said his original decision to resist an inquiry into the financial services sector was because he wanted to implement reform instead of wait for a report.
But after receiving a letter from Bill Shorten demanding an apology for the ‘delayed’ inquiry, the prime minister conceded he may have made the wrong choice.
Despite calls from members of his backbench to proceed with an inquiry since 2016, Mr Turnbull only agreed to have one go ahead in December.
Malcolm Turnbull (pictured) has admitted a banking royal commission two years ago would have been a better move politically
‘I made the decision not to proceed with a Royal Commission at that time,’ Mr Turnbull told reporters in Berlin.
‘And, look, politically, of course you are all right when you say it would have been better for us politically years ago.’
He defended his move however, to wait until December, saying the inquiry could have delayed important reforms.
‘Recognising that you can’t live your life backwards isn’t it better that we have got on with all those reforms,’ Mr Turnbull said.
‘We have strengthened ASIC and we’ve created a one stop shop for consumer complaints against banks and other financial institutions.’
After receiving a letter from Bill Shorten (pictured) demanding an apology for the ‘delayed’ inquiry, the prime minister conceded he may have made the wrong choice
In the letter to Mr Turnbull, Mr Shorten said the first 14 days of the commission heard shocking and shameful evidence of systemic wrongdoing and a culture of cover-up.
‘Along with many Australians, I can’t help but wonder how many customers were ripped off by this kind of misconduct in the two years it took the government to relent and agree to Labor’s calls for a royal commission,’ he wrote.
‘How many Australians continued to be hit with ‘fees for no service’ in the two years the government continued to protect the banking industry from a royal commission?’.
Mr Turnbull agreed ‘you’re all right when you say it would have been better for us politically if we had done so years ago’.
Mr Turnbull (pictured) defended his move however, to wait until December, saying the inquiry could have delayed important reforms
‘But the reason I didn’t proceed with a royal commission is this: I wanted to make sure we took the steps to reform immediately, and got on with the job,’ he said from Berlin.
Former deputy prime minister Barnaby Joyce has admitted he was wrong to oppose such a commission for so long.
But Financial Services Minister Kelly O’Dywer refused eight times to say the government got it wrong in a television interview on Sunday.
Instead she talked up the coalition’s efforts to boost the standards for financial advisors, increase the penalties for misconduct and offer greater funding for the regulator ASIC.
‘I’m actually obsessed about fixing the problems,’ she said on ABC Insiders.
‘There is no question we got it right in establishing the royal commission.’
Financial Services Minister Kelly O’Dywer (pictured) refused eight times to say the government got it wrong in a television interview on Sunday
Nationals senator John ‘Wacka’ Williams, who was a strong advocate for an inquiry, predicts more wrongdoing by the banks will be uncovered.
‘If I was opposing the royal commission like many of my colleagues did, or most of them, I’d do Barnaby (and say) ‘look I had it wrong’,’ he told ABC radio on Monday.
Given the evidence heard already, Mr Shorten also insists it’s time for the government to consider a compensation scheme for victims of proven wrongdoing and wants the commission to be given more time and resources if requested.
Finance Minister Mathias Cormann has said if the commissioner asks for a longer inquiry it will be acted upon by the government.
Former deputy prime minister Barnaby Joyce (pictured) admitted he was wrong to oppose such a commission for so long