FINANCIAL SERVICES COUNCIL LEADERS SUMMIT, SYDNEY

CHRIS BOWEN, SHADOW TREASURER: Thanks for coming ladies and gentlemen. The Shorten Labor Opposition continues to set out our agenda for Government. As the Liberals remain focused on themselves and the Greens implode we remain determined to take to the Australian people a comprehensive agenda for the future. Today I've outlined one of those plans, it's time for a prudent, carefully designed review of our financial system architecture. In a speech I just made I outlined three reasons why this is necessary; some of the ad hoc changes over the last 12 months, the increasing household debt in Australia and the emergence of new forms of financial technology. All reasons for a prudent review through our Banking Royal Commission of the architecture of our financial and prudential regulation and that of course will be reflected in the policy we take to the next election and the policy we implement after the next election.

 

Of course we continue to outline what we see are the great challenges in improving the Budget bottom line and improving fairness at the same time. Bill Shorten and I have been speaking about this over recent days and we will have more to say obviously in coming days. The Government is reduced to a scare campaign, Barnaby Joyce barely made sense yesterday and the Treasurer continues to run around making up false allegations about Labor’s policies. Well we will be outlining our policies in full detail over coming days and will be there for all to see and they are policies which will have been very carefully designed and meet the challenges of Australia's future: improving the Budget bottom line.

 

The Budget will not return to Budget balance by tinkering or by half measures. Labor has shown we are up to the task of putting a comprehensive plan before the Australian people and they will also deal with the issue of inequality which the Government pretends doesn't exist. When the Government is full of climate deniers and they are full of inequality deniers as well. What we see is the Government refusing to listen to the Australian people and the Australian people's message to them that inequality is on the rise and they refuse to do anything about it.

 

My final point before taking questions is that the Treasurer was out on the 1st of July spruiking his plan to allow access to superannuation for first home buyers. Now today the Tax Office has warned people that they need to be very careful in engaging, in going down that road because the legislation has not yet passed the Parliament.

 

This is Government incompetence and frankly it’s Scott Morrison's incompetence. Now Labor opposes that legislation and there is no guarantee that that legislation will pass the Parliament or indeed that it won't be amended and the Treasurer out there to be misleading young people, and spruiking the first homebuyers a half-baked bad idea which she hasn't even bothered to legislate just shows that this Government is focused on politics and on attacking the Labor Party and not focused on doing their job. If they spent, and this Treasurer in particular, spent 30 per cent of the time that he spends making up things about Labor policy and concentrating on getting his own policies right then they should be better off. A first home so called ‘housing affordability package’ in the Budget was a joke and the Government can’t even competently implement it.

 

Happy to take any questions.

 

JOURNALIST: Today you mentioned three reasons why you think there should be a Royal Commission, one of them being household debt. Now do you think that that would be better served by having its own inquiry rather than wrapping it up into a wider inquiry?

BOWEN: Look I considered that, it’s a fair question. But I think having the Royal Commission provides a clear vehicle. And the Royal Commissioners that we appoint will be highly experienced, credentialed and qualified people who can look at the matter holistically, avoiding future scandals and avoiding future instability. I think the right balance, the right way forward is to provide the Royal Commission with this task.

 

JOURNALIST: Given that Royal Commissions are usually used to rule out misbehaviour and criminal behaviour, do you think regulators will feel threatened?

 

BOWEN: Oh no, not at all. The regulators have our respect and support. I’ve made that very clear. And I will make that clear to you. And Royal Commissions can be used for a whole manner of purposes. I can’t really accept the premise of your question. Royal Commissions look at all sorts of things. This is a prudent way for us as an incoming Government to ensure that our financial systems architecture is up to international best practice and is fit for purpose.

 

JOURNALIST: Tony Boyd today wrote about this in Chanticleer, he called your justification flimsy…

 

BOWEN: I didn’t read it, with all due respect.

 

JOURNALIST: …and he did say that the three reasons you gave, fintech, household debt and the other one was I believe the ad hoc nature of our regulatory system are flimsy reasons, how would you respond to that?

 

BOWEN: Well obviously I disagree. I mean he’s entitled to his view. I think the case we’ve made is strong and substantial and I’m happy to take it to the people.

 

JOURNALIST: Is APRA at the moment, are you suggesting that APRA has too much work to do?

 

BOWEN: No, I’m suggesting that the lines of accountability have been somewhat blurred. That APRA now has some responsibilities that you might have thought would have gone to ASIC. And that indeed macro prudential regulation has macro implications which traditionally has been the purview of the RBA. So you could have said before these developments that the lines of accountability were pretty clear in Australian financial regulation. I don’t think you can say that at the moment. And that is no disrespect to the regulators, they are doing their jobs and doing their best. It’s Government’s responsibility to outline the areas of responsibility, and what I’ve indicated is I’ll be informed by a Royal Commission as I do so, as Treasurer.

 

JOURNALIST: On the topic of offshore detention, what do you make of the UNHCR’s recent claims about Australia’s agreement with the US to resettle asylum seekers from offshore detention centres in Manus Island?

 

BOWEN: Well it’s up to the Government to explain. The UNHCR says one thing, the Government says another thing, and there is a clear disparity between those things.

 

JOURNALIST: You were once Immigration Minister, do backdoor deals I guess happen regularly?

 

BOWEN:  Not in my experiences as Immigration Minister.

 JOURNALIST: Just one more, can I just mention that you’re pretty strong obviously on the Royal Commission, so is a vote for Labor a vote for a Royal Commission?

 

BOWEN: Yes.