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The Guardian - AU
The Guardian - AU
National
Gabrielle Chan

Labor asks Senate to consider whether NBN raids could constitute contempt – as it happened

Senator Stephen Conroy
Senator Stephen Conroy has asked the Senate to consider whether there was ‘attempted improper interference’ in the Australian federal police raids on Labor staffers. Photograph: Mick Tsikas/AAP

Night time politics summary

I am going to shuffle off into the night.

  • Parliament began in earnest today, with Labor testing the government’s numbers on the floor from the first hour of power. Labor tried unsuccessfully to move a motion for a royal commission into the banks. Labor then tried to move to the negative gearing issue. Many first speeches were completed, including Labor MP Linda Burney and Liberal MP Tim Wilson.
  • The government introduced a number of bills, including the budget omnibus bill, the Australian Building and Construction Commission (ABCC) bill, the registered organisations bill and a number of others. Malcolm Turnbull began the day offering negotiations on the industrial relations bills.
  • After a rowdy question time, Labor alleged the treasurer got his numbers wrong in the omnibus bill which was going to save the government $6.1bn. Scott Morrison scoffed in QT but treasury later put out a statement confirming they got the numbers wrong. Scott Morrison wandered into the house to update them. It was out by $107m.
  • Labor’s Stephen Conroy inched a step further on the AFP raids on him relating to the NBN leaks. The powerful privileges committee will look into the documents and determine whether they are protected and also whether the NBN are in contempt of the senate.

Thanks to the brains trust, Murphy, Karp, Hutchens and Bowers, my eyes and ears in the chambers. He hears and sees everything....

And thanks to you the readers for your company and comments. Be good. Tomorrow is Thursday. All day and the last day of the sitting week.

Night night.

Lee Rhiannon and Derryn Hinch will get three year terms instead of a six year term under the allocations made this morning. Rhiannon has described the deal by the major parties as undemocratic.

By supporting the less democratic method of determining long term Senators, Labor is assisting the conservative side of politics to have more control of the Senate following the 2019 election.

This is because the Coalition wins a long term spot when the first six elected in a double dissolution method is used. That is at the expense of Senator Derryn Hinch, who would displace a Coalition senator if the fairer half senate recount method was used.

Labor has gone for self-interest and increased the risk of right wing legislative outcomes.

I spoke to Derryn Hinch five minutes ago. When he first sniffed the breeze on this deal just after the election, he threatened it could end up in the courts. But he has just conceded it is a matter for the senate. He said even though the Australian Electoral Commission recommended according to the count he would be in sixth spot for Victoria (and therefore entitled to a six year term), he would have to settle for three.

That’s ok, I will work hard and give people a reason to vote for me.

There are a whole lot of first speeches happening today. Liberal MP Tim Wilson is speaking now and it is a ripper. I will try to get the text as I am spinning other plates as well. I noted earlier Linda Burney. There was Liberal MP Nicole Flint who replaced Andrew Southcott. Liberal MP Andrew Wallace, who replaced Mal Brough, has spoken. Labor’s Luke Gosling, the new member for Solomon in Northern Territory has also spoken.

Labor ups the ante on AFP raids over NBN leaks in senate

Labor has opened a new front in the controversy over the leaked NBNCo documents, asking the privileges committee to examine whether there has been “improper interference”, or “attempted improper interference”, with Stephen Conroy’s free performance as a senator.

The Senate president, Stephen Parry, gave the matter precedence in the Senate on Wednesday afternoon, and Senators will determine whether or not the matter proceeds to substantive consideration on Thursday.

In making the case for the matter to be given precedence, Conroy told Parry he wanted to pursue whether any contempt had been committed during the police raids and during the investigation into leaked documents by either the Australian federal police or by the NBN Co.

Conroy said he was concerned that his telecommunications and communications by his staff may have been intercepted and accessed by the AFP – an action, he said, that “may constitute a contempt.”

“I am also concerned that NBNCo may have acted on information obtained during the raids, over which I had claimed privilege, to penalise NBN Co staff alleged to have been connected to the provision of information to enable me to carry out my functions as a Senator,” Conroy said in a letter to Parry.

“Any adverse action against an employee of NBN Co because of a suspicion that they provided a Senator with information in relation to proceedings in the parliament may also constitute a contempt,” he said.

Parry agreed to give the issue precedence, but in a statement to the chamber, he said that decision was procedural, rather than an overt signal that he believed the matter should go to the privileges committee for inquiry.

The Senate on Wednesday agreed that the privileges committee would determine whether material obtained by the AFP in their controversial raids during and after the election campaign will be protected.

The government had been signalling it was not inclined to support Labor in referring the matter to privileges, but waved the reference through after Coalition Senators expressed concern about the police conduct and the accessing of parliamentary communications.

The Liberal senator Cory Bernardi signalled he could side with Labor in sending the matter off to the privileges committee.

The contempt motion raises the stakes in the transaction further, because it is possible, at least technically, that the Senate could resolve to apply sanctions.

The privileges act has penalty provisions which include “imprisonment for a period not exceeding six months for an offence against that house determined by that house to have been committed by that person.”

Labor appears confident it has the support to send the contempt inquiry to the committee when the vote happens on Thursday.

Lovely pics from Mike Bowers.

I missed something this morning. Senator Fifield moved a motion which set out who would get six years and who would get three year terms in the senate.

The senate decided on order of election method which means the first six senators elected in each state get the six year terms and the second six in each state get the three year terms.

While this is a system which has been historically used in double dissolutions, the Hawke government introduced a different rule known as section 282 which would have changed the outcome. I have yet to hear any complains out of the senate but I will do a ring around.

Burney in a skin with her totem.

The member for Barton and first indigenous woman to be elected to the house of representatives Linda Burney.
The member for Barton and first indigenous woman to be elected to the house of representatives Linda Burney. Photograph: Mike Bowers for the Guardian
Burney wears a skin in her first speech.
Burney wears a skin in her first speech. Photograph: Mike Bowers for the Guardian

Burney said she was told as a school girl her race would limit her potential but she sends out a message to young Indigenous girls.

If I can stand in this place then so can they.

Linda Burney didn’t meet her Wiradjuri father until she was 28. His first words were “I hope you don’t disappoint you”.

She describes the Wiradjuri wars throughout history and visiting massacre sites, where her blood ran cold.

Her Sydney seat of Barton has many different cultures and she notes she is not sure what Edmund Barton - Australia’s first prime minister - would think of it, especially with a Koori woman representing the seat.

Linda Burney has arranged for her Wiradjuri sister Lynette Riley to sing her into the parliament.

I was born at a time when the Australian government knew how many sheep there were but not Aboriginal people, says Burney.

OK I have been struggling under the weight of privileges committee business which just occurred in the senate. Thanks to an informed friend, I think I have a simplified version of it.

But first, Labor’s Linda Burney - Australia’s first female Indigenous in the lower house - is giving her first speech in the federal parliament.

Senate president Stephen Parry is ruling on the privileges matter related to the NBN leaks. We are just trying to get an interpretation of the ruling. But this is where we were up to, via Katharine Murphy last night.

The Coalition has agreed to allow parliament’s powerful privileges committee to determine whether material obtained by the Australian federal police in controversial raids during and after the election campaign will be protected by privilege.

The government had looked to be positioning to avoid that outcome but in one of the first gestures of the new Senate, the leader of the government, George Brandis, said he would support the reference to privileges because it was the “appropriate course of action.”

Mike Bowers has noticed a certain increased fidgeting level on the Labor benches. It must be because of the reported ban on smart phones by Labor manager of opposition business, Tony Burke. Alice Workman of Buzzfeed reported yesterday that:

Burke has instructed all Labor politicians not to play on their devices while in the house of representatives chamber for Question Time. If MPs have to use devices for work, they’ve been told by Burke to keep it to a minimum. Instead Labor MPs have been told to focus their stare across the chamber at the government, and ensure they have their “game faces” on.

The matter of public importance this afternoon is “the prime minister’s failure to provide leadership”.

Malcolm Turnbull during question time.
Malcolm Turnbull during question time. Photograph: Mike Bowers for the Guardian

Shadow Treasurer Chris Bowen taunts the PM.
Shadow treasurer Chris Bowen taunts the PM. Photograph: Mike Bowers for the Guardian

Updated

Malcolm Turnbull and the Treasurer Scott Morrison during question time.
Malcolm Turnbull and the treasurer Scott Morrison during question time. Photograph: Mike Bowers for the Guardian

Updated

Last question is on mobile phone black spots in rural communities.

Note to Mr Jones: Increase font size for props and stunts.

The member for Whitlam Stephen Jones is the first eviction of the 45th Parliament.
The member for Whitlam Stephen Jones is the first eviction of the 45th Parliament. Photograph: Mike Bowers for the Guardian

Shorten to Turnbull: I refer to the prime minister’s failure to get his way on superannuation and negative gearing, failure to implement lessons learned about cutting Medicare, and his failure to hold back the rightwing of his party on racial discrimination. When will the prime minister start leading his party, not following his party?

Turnbull:

It seems a long time ago, really, but it was only actually yesterday when the leader of the opposition was promising a more constructive and civil debate in the parliament, when he was going to work with us, address the problems of the nation with big ideas and in a constructive way, in a pragmatic way, and what we’ve had from the moment the house opened this morning. We have just had one political stunt after another.

Updated

Warren Entsch is collecting autographs on his own backbench. #justsaying

Warren Entsch collects signatures during question time in the House of Representatives.
Warren Entsch collects signatures during question time in the House of Representatives. Photograph: Mike Bowers for the Guardian

Updated

Tony Burke has asked Turnbull about his commitment to 18C. The first question is ruled to be asking for a legal opinion. Burke re-phrases the question.

Will the prime minister rule out any changes to the RDA this term?

Christopher Pyne challenges the question again and Speaker Smith sits him down.

Turnbull says he has no plans to change the RDA this term.

Updated

Constituent question to Turnbull from Sarah Henderson (Corangamite) on the CFA legislation.

Dreyfus to Turnbull on 18C: I refer to reports that all but one of the PM’s Senate backbench led by Senator Cory Bernardi are defying the PM by sponsoring a bill which will give licence to hate speech. Is this just another case of what the member for Warringah describes as aGovernment that is in office but not in power?

Turnbull:

It is a debate that has been going on for some time a sto whether the boundary on free speech, if you like, is set at the right point? There are distinguished people, learned in the law, some of the member for Isaacs’ colleagues at the Victorian bar, for example, who believe changes should be made and there are others that believe it should stay as it is. As far as the government is concerned, we have no plans to change 18C.

Just re the black hole in the omnibus bill.

Hello good people of Politics Live. Tracking back just briefly to the question that Chris Bowen asked earlier about whether the government’s costings in their new “omnibus” savings bill were $100m out – if you look at the explanatory memorandum associated with the bill, some of the columns don’t seem to add up. The most notable not adding up example is a costing for student start-up scholarships which appears to be $107.6m out. Perhaps there is a technical explanation for this that would explain the discrepancy. We’ll check it out.

Lib MP Rowan Ramsey to environment and energy minister Josh Frydenberg: Since the closure of the Alinta power station in Port Augusta, wholesale electricity prices have more than doubled in SA. Not only putting significant strain on the householder but having a catastrophic impact on the high consumption heavy industry. Can the minister please inform the house as to what course of action can be taken to address this issue?

Frydenberg says only the Coalition can be trusted to bring down energy prices and transition to a low emissions future.

Plibersek to Turnbull: When the PM deposed the memberfor Warringah, he said “Ultimately, the PM has not been capable of providing the economic leadership our nation needs. “ But isn’t it the case that almost a year later, the PM is still following the economic plan of the very person he deposed? Is this what the PM meant when he promised new economic leadership?

Turnbull says TPlibs wasn’t paying attention on budget night.

Reforms to superannuation, reforms to enterprise tax, reforms to personal tax. All of which were new reforms and new proposals and they have all been presented and they will be taken through this parliament.

Government question to Sussan Ley, health minister: I remind the minister that new figures on the weekend showed Medicare investment and bulk billing at record highs under our Turnbull Government. Will the minister please explain the government’s plans to build an even stronger Medicare?

Ley goes to the Mediscare campaign again. Labor MP Stephen Jones is thrown out in the process for holding up a prop. Could not see what it was.

Dreyfus to Turnbull: Leaks from cabinet are a criminal offence punishable by two years in prison under s.70 of the Crimes Act. Has the PM referred these latest negative gearing leaks to the Australian Federal Police for investigation? Can we expect raids on cabinet ministers’ offices soon?

ie. like the NBN leaks?

Turnbull on the negative gearing leak:

The version of events proffered in the book that was extracted in the newspaper today simply is wrong. There was no leak, it is an invention.

Bowen to Turnbull: it has been revealed that the prime minister and treasurer were rolled on reforms to negative gearing by ministers loyal to the member for Warringah, including the minister for immigration, the minister for the environment and the minister for social services. If the prime minister and treasurer can’t even win an economic argument in the cabinet, isn’t it clear that the member for Warringah is right and that this is a Government that is in office but not in power?

Turnbull:

All I can say to the honourable member is I refer him to my earlier answer and remind him of a very wise insight which applies, and I suspect has always applied in this place, that those who are talking don’t know and those who know aren’t talking.

Updated

Julie Bishop on the Coalition’s carbon policy:

Our 2030 target of reducing Australia’s contribution to global emissions by 26-28% from 2005 levels was in line with our developed economies. It is already apparent that the initiatives that we have put in place are reducing emissions without putting a tax on electricity and driving up electricity prices.

There is a question to Julie Bishop, foreign minister: Will the minister update the House on the Coalition’s progress in delivering on the Paris agreement on climate change? Will the minister outline how the international agreement is in Australia’s national interest?

Bishop says “the Turnbull government will table the Paris agreement on climate change to enable consideration by the joint standing committee on treaties to hopefully enable ratification of this historic agreement by the end of this year”.

Updated

Shorten to Turnbull: Can the prime minister confirm reports today that he and the treasurer are all in favour of making changes to negative gearing before the minister for immigration rolled them in cabinet, arguing there was “political value in doing nothing so as to attack Labor’s changes with clean hands”. Isn’t this yet another case of the prime minister with no authority being dragged to a position by the right wing of his party?

Turnbull says the story:

has no basis, in fact, at all. It is a reminder of Mark Twain’s wise words that only fiction has to be credible. In this case it is not even credible.

He then goes on to criticise Labor’s negative gearing and makes a strange reference to billionaires.

In all my years, I have never seen anything as sycophantic as a Labor politician in the presence of a billionaire and this leader of the opposition would absolutely qualify for that. But negative gearing, the Labor party policy would have deprived hundreds of thousands of hard working Australians from being able to make an investment in property and offset the losses against their wages or their salary.

Updated

New Nat MP Damien Drum asks Barnaby Joyce: Will the minister update the House on measures that the government is delivering to support dairy farmers and is he aware of any alternative proposals?

We are delivering a $579m dairy support package to assist farmers, $550m in dairy recovery concessional loans. Additional financial counsellors have been delivered. We put $905,000 towards additional counsellors. We have $900,000 for tax for tight times. We put $2m on the table to establish a milk commodity price index and we are making sure we get and deliver back to those who are hurting by the delivery of farm household allowance. There are over 200 people, 208 now receiving farm household allowance, this gives them $1,000 a fortnight for a couple to make sure they can keep dignity in their lives.

Updated

Labor alleges there is a $100m black hole in the budget omnibus bill

Chris Bowen to Scott Morrison: Can the treasurer explain to the House why there is a black hole of more than $100m in the costings of the omnibus bill introduced into parliament today? Can the treasurer explain why the numbers on page 5 of the explanatory memorandum of the bill don’t add up? Does the treasurer stand by his claim in the House today that the bill improves the budget bottom line by more than $6bn?

The bill has more than $6bn worth of expenditure savings. It says that.

Morrison is blowing hard, ribbing Bill Shorten about his victory lap, even though he was “on the wrong side of the scoreboard”.

Updated

LNP MP Luke Howarth asks Scott Morrison: Will the treasurer please update the house on progress in arresting the deficit and debt burden on Australian taxpayers?

We must arrest the debt that continues to grow, which we inherited from those opposite and we must ensure the resilience and strength and confidence in our banking and financial system.

Updated

Katter to Barnaby Joyce, agriculture minister: Government is aware seven of North Queensland’s 100m hectares is now prickly acacia infestation. Queensland is considering the river ways and grass lands improvement plan. Will the minister considering providing $2.5m for engineering and construction planning in a plan that increases the nation’s beef production by $5bn a year?

I think the answer to that from Barnaby was no.

Shorten to Turnbull: During the election campaign, the prime minister said that the government’s superannuation policy was absolutely ironclad. The AFR reports this morning that the PM’s proposed changes to superannuation are not expected for at least a month because of “changes demanded by the backbench”. Will the government implement its election policies on superannuation unchanged?

Turnbull says the Coalition is consulting in the normal way. It’s complex, the drafting is complex and we are working on it. You backed our superannuation savingsduring the election, says Turnbull, and then changed your mind on supporting some of the measures after the election.

(These were the measures Shorten announced Labor would block at the press club last week.)

The first allows catch-up concessional superannuation contributions. Under the measure, those with superannuation balances of $500,000 or less would be allowed to access their unused concessional cap to make additional concessional (before tax) contributions.

The second removes the work test for those aged 65 to 74 currently required to make voluntary or non-concessional superannuation contributions. It would also allow 65 to 74-year-olds to receive superannuation contributions from their spouse.

The third allows tax deductions for personal superannuation contributions.

Updated

LNP’s Michelle Landry to Turnbull: Will the PM outline to the House the government’s agenda to deliver on the commitments it took to the Australian people at the 2 July election?

Turnbull goes to the introduction of the ABCC bill and the registered organisations bill.

These measures address the kind of thuggery and illegal activity that was exposed by the Heydon royal commission. They boost productivity across the building and construction sector. They vital economic reforms.

Updated

Shorten to Turnbull: Three days after the election, the PM said he had learned his lesson on cutting Medicare. Given the PM says he has learned his lesson, which of his Medicare cuts has he reversed in the two months since the election?

Turnbull starts on the Medicare campaign.

The Labor party went to the extent of sending out a text message which purported to be from Medicare, that distinguished QC opposite, the member for Isaacs [Mark Dreyfus], he scoffs. Did the member for Isaacs give advice? Was it the member for Isaacs that told the Labor party that there was a loophole in the law? Was his the cunning legal mind that said ‘Yes, you go to jail for five years if you impersonate a Commonwealth official’. But, if you impersonate Medicare, you probably won’t get charged.

Updated

Government question to Turnbull: Will the PM advise the importance of economic leadership in building Australia’s prosperity, in particular the role of governments in showing the discipline to live within their means?

The Australian people have endorsed our economic plan, returned us to the treasury benches. We must now work to address the moral challenge of budget repair. This is a moral issue. This is an issue of inter-generational equity. For how long are we going to live on the credit cards of our children and grandchildren.

Updated

Malcolm Turnbull continues on Shorten.

He hasn’t offered to recover $1, he hasn’t offered to change one law. What he has offered to do is spend years and years and years on a lawyers’ funding fest. The only people that will be enriched out of a banking royal commission will be the legal profession ... Does he have any ideas? Nothing. Just a royal commission. They should build a statue of him outside the barrister’s chambers.

Updated

Question time and number one question from Bill Shorten on the banks. When will you show leadership and call a royal commission?

The PM comes out yelling.

The real question is when will the leader of the opposition stop playing politics? When will he take an interest in the lives and the businesses of Australians? Instead of posing as some sort of later day Jack Lang, a populous champion of the battler and small business.

Coming up to our first question time. Stay tuned...

I thought it was worth sharing the terms of reference for the government’s review of small business mistreatment because the terms are quite specific.

Terms of Reference

In undertaking the inquiry, the ombudsman should:

  • review a selection of the cases that have been identified by the PJC [parliamentary joint committee] as unfair and ascertain whether there are any deficiencies in the regulation of authorised deposit taking institutions in lending to small business;
  • refer any matters identified in the review to the relevant authority for further consideration as necessary;
  • determine whether the regulatory deficiencies identified by the PJC, or additional deficiencies identified through the inquiry, are being addressed by subsequent government and industry reforms; and
  • recommend whether additional reform measures should be implemented (legislation, regulations, guidance and practices) to ensure products perform in the way they should, taking into account that consumers have a responsibility to accept their financial decisions, including market losses, when they have been treated fairly, and any impact on the availability and cost of credit to small business.

Updated

Senator John Williams is going to launch an inquiry into the life insurance industry. He is talking about a life insurance company that refused to pay out on a policy after a 22-year-old man took his own life. The company refused to pay because the young man did not have enough money in his super account. Williams is planning a Senate committee inquiry.

Updated

Lunchtime politics

The US ambassador John Berry is speaking at the National Press Club.

  • Parliament has had its first debates this morning with Labor testing Malcolm Turnbull’s numbers on the floor. The opposition began with a motion for a bank royal commission, following up with a motion on negative gearing policy. Both motions were lost after Labor members were gagged and then the substantive motions were voted down.
  • In answer to the Labor banks motion, the government announced the Ramsay review to examine bank treatment of small business customers. This appeared to be enough to keep bank critics National senator John Williams and MP George Christensen at bay. In fact, Christensen moved the government amendment.
  • The government has introduced a slew of bills, including the budget savings omnibus bill, the fair work amendments relating to the Australian Building and Construction Commission (ABCC), the registered organisations bill and the budget appropriations bill.

Updated

Revenue and financial services minister Kelly O’Dwyer has introduced the tobacco excise tariff amendment.

The bill will increase the excise on tobacco products by 12.5% each year from 2017 to 2020, at which point it will make up 69% of the price of a pack of cigarettes.

Treasurer Scott Morrison has been speaking for quite some time about the omnibus bill. I should have said that.

Fancy meeting you here.

Former human rights commissioner Tim Wilson visits the cross bench independents, Indi indie Cathy McGowan, NXT’s Rebekha Sharkie, with Bob Katter and Greens Adam Bandt.
Former human rights commissioner Tim Wilson visits the cross bench independents, Indi indie Cathy McGowan, NXT’s Rebekha Sharkie, with Bob Katter and Greens Adam Bandt. Photograph: Mike Bowers for the Guardian

The crossbench is getting a lot of attention today.

Malcolm Turnbull is onto the registered organisations bill. Here is an explanation prepared earlier by Paul Karp:

The registered organisations bill would introduce an independent watchdog, the Registered Organisations Commission, to regulate unions and employer associations.

It would have enhanced investigation and information-gathering powers compared with the Fair Work Commission, which currently polices unions. These include the ability to seize documents with a warrant.

The bill increases requirements for union officials to disclose material personal interests and for unions to report their financial accounts. It increases civil penalties and introduces criminal offences for serious breaches of officials’ duties.

The bill would make people convicted of particular offences like misuse of members’ funds ineligible to stand for election as officials.

Turnbull says good union officials have “nothing to fear”.

This bill seeks to give union members a fair deal.

Updated

Thanks mate.

Malcolm Turnbull talks to the member for Dawson, George Christensen, after he moved an amendment staving off Labor’s bank royal commission
Malcolm Turnbull talks to the member for Dawson, George Christensen, after he moved an amendment staving off Labor’s bank royal commission. Photograph: Mike Bowers for the Guardian

Updated

Ships in the night.

Malcolm Turnbull and the opposition leader, Bill Shorten, cross paths during a division
Malcolm Turnbull and the opposition leader, Bill Shorten, cross paths during a division. Photograph: Mike Bowers for the Guardian

Updated

OK the prime minister is now on to the Australian Building and Construction Commission (ABCC) bill to “ensure the rule of law is established on building sites across the country”.

Turnbull is speaking to the CFA bill now.

The bill limits some of the restrictions that can be placed on volunteer emergency service organisations and gives those volunteer organisations the ability to make submissions on workplace deals that affect them.

Bowen lost the vote on negative gearing 70-78.

Now Malcolm Turnbull is introducing the fair work amendment (respect for emergency services volunteers) bill.

This relates to the Country Fire Authority dispute in Victoria.

Updated

In the Senate, Cory Bernardi is calling on Sam Dastyari to resign for taking a Chinese donation to pay off a travel bill.

Sam has yet to surface.

Where is Sam? Not at the Senate doors
Where is Sam? Not at the Senate doors. Photograph: Mike Bowers for the Guardian

Though he did tweet.

Fair yarn. While fully disclosed, understand concern, so I’m donating the amount to charity.

Updated

This is the Chris Bowen motion on negative gearing.

  1. Notes that:

a) The prime minister and treasurer have for months railed against reforms to negative gearing;

b) But this morning, it has been revealed that the prime minister and treasurer were in fact rolled in cabinet on reforms to negative gearing by conservative members in his party loyal to the member for Warringah;

c) This is the first time in more than 40 years that a prime minister and treasurer have been rolled on a central economic reform; and

d) If the prime minister and treasurer can be rolled on an economic reform by factional forces then the member for Warringah was right that “This government has been in office – not in power”; and therefore condemns the prime minister for failing to provide the new economic leadership he promised but instead being led by conservative members of his party.

Updated

From the Financial Services Council on Labor’s banking royal commission motion.

From the parliament website: “A member may speak sitting and ‘covered’ (wearing a hat) when a point of order arises during a division.”

Fireworks on the first full day of sitting in parliament with Christopher Pyne
Fireworks on the first full day of sitting in parliament with Christopher Pyne. Photograph: Mike Bowers for the Guardian

Updated

The government wins the gag 77-71.

Tony Burke gets up to take up the negative gearing motion and he is gagged. Voting continues.

The Young Liberals have put out a statement supporting Cory Bernardi on 18C.

The private senator’s bill put forward by Senator Bernardi, supported by almost all backbench Liberal senators, is welcomed and strongly supported by the Young Liberal movement of Australia,” federal president Claire Chandler said.

“The provisions of section 18C that make it illegal to ‘offend’ or ‘insult’ are not only vague, they are an anathema to the kind of free and open society to which we aspire.

“Sir Robert Menzies in his We Believe statement said ‘we believe in the great human freedoms: to worship, to think (and) to speak’. Reforming section 18C is clearly complementary to maintaining these freedoms.

Updated

Is this the answer to the lost pair, Tony Burke?

Updated

Hear me and hear me well ... Shorten

The member for Dawson, George Christensen, moves an amendment in parliament, which he eventually won
The member for Dawson, George Christensen, moves an amendment in parliament, which he eventually won. Photograph: Mike Bowers for the Guardian

Updated

Bring out the gag!

So the parliament is now voting to gag Labor’s Chris Bowen, who wanted to talk about Malcolm Turnbull and Scott Morrison being rolled in cabinet on negative gearing.

The brilliant Mr Bowers.

Just quickly, Katharine Murphy has a cracking interview with former Liberal MP for Herbert Ewen Jones, giving his colleagues a bit of free advice on 18C.

Jones blasted his colleagues for launching an identity politics frolic when the government needed all MPs to knuckle down on the government’s policy agenda.

‘How many of these men from my party had their seats in jeopardy during the election? This is what gives me the shits,’ Jones said.

‘I lost my seat. It is a marginal seat and I know the risks. But I never freelanced or pushed my own personal agenda. Neither did Wyatt Roy, Matt Williams, Russell Matheson, or Natasha Griggs.

Updated

Labor is now moving another suspension of standing orders on negative gearing policy.

The Coalition wins the Christensen amendment 75-73.

Speaker gives a lecture on not taking a point of order on pairs.

Go and call a press conference and have an argument. You will not be having it here.

Updated

Now we have the vote on Christensen’s amendment on the banks. It essentially says Labor did nothing in government and the Coalition is doing lots to make the banks accountable.

Pyne has lapsed on the issue of not gagging. Essentially gagging the debate on the bank royal commish.

The next vote is also won by the government 75-73. So there was no pair there either. We are discovering.

There is a Mexican hat in the Senate.

A female senator said, adios amigos.

I shall find out shortly but the day is degenerating.

Updated

Meanwhile, Andrew Probyn of the West Australian reports:

Already, on this first issue, we see Labor testing Malcolm Turnbull’s majority on the floor of the house. From Christopher Pyne’s responses, it would appear he was originally trying to be conciliatory (not gagging motions) until it all fell apart on the pairing issue.

Updated

Pyne, holding a paper over his head as is the custom during a division, says to Labor if you need a pair, we will grant you one.

Then Chris Bowen asks the Speaker to ask Pyne to withdraw his unparliamentary language. The Speaker says it was a frivolous point of order.

Updated

Now the question over George Christensen’s amendment is being voted on. Christopher Pyne was the one yelling, Mike Bowers tells me. Pyne was very cranky and called Burke “scum”.

The count is Ayes 75 – No 73. In other words, the government got the numbers on the procedural question.

Labor’s Tony Burke jumps up and says if the government got 75 votes the Coalition did not honour the “pair”. He says Labor and the Coalition agreed the day before to pair a Labor MP who needed parental leave. In other words, one of the Coalition MPs should have stood down in the vote.

Someone is shouting very loudly.

Updated

More deets from Mr Coorey about the Ramsay review.

It will examine selected cases identified by the committee regarding small business lenders to determine whether further regulatory action is required.

Some of these have been directly raised with Liberal party MPs like Warren Entsch who have been loudest in their criticism of banks.

Updated

Ramsay review into mistreatment of small business customers by banks

In case you are wondering about the vaunted Ramsay review, it was announced earlier this year. The government has announced an new enquiry by the small business ombudsman into mistreatment of small business by banks. This extension was announced via the Financial Review and Phil Coorey this morning:

The federal government has announced an inquiry into specific cases of mistreatment of small business customers by banks, in a bid to take the steam out of Labor’s call for a royal commission.

In doing so, it has killed off Labor’s push but raised the prospect of further regulation for the sector.

The government made the announcement minutes before Labor leader Bill Shorten used the start of the new parliament to move a motion calling for a royal commission.

The ombudsman will provide an interim report to the Ramsey Review and finally to government.

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The House gets down to business on the first full day of sitting in parliament
The House gets down to business on the first full day of sitting in parliament. Photograph: Mike Bowers for the Guardian

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Note to government. Katter is as Katter does.

The member for Kennedy, Bob Katter, in full flight
The member for Kennedy, Bob Katter, in full flight. Photograph: Mike Bowers for the Guardian

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The parliament is having its first vote – procedural.

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Bob ... love your work.

Bob Katter after he told the House about his relative who died at Gallipoli
Bob Katter after he told the House about his relative who died at Gallipoli. Photograph: Mike Bowers for the Guardian

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Meanwhile in the Senate.

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George Christensen also mentioned the bank tribunal and the Ramsey Review. So the Coalition has put a bank critic, Christensen up to argue the case against a royal commission. He says Labor is very brave in opposition but weak in government.

Tim Watts wit.

George Christensen – a former supporter of the bank royal commission – wants to amend Labor’s motion.

It would:

  • acknowledge concerns about certain practices in the banks
  • note most occurred under Labor’s watch when Shorten was responsible for financial services
  • note Shorten neither initiated or took meaningful action against those acts
  • support the PM calling on the banks to pass on interest rates
  • admit banks operate under social licence
  • more to come.

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Bob Katter says 13 stations in one town alone have been foreclosed on. There is one person suiciding every three weeks in North Queensland, he says.

I know these people. They are my friends. They are relatives of mine.

Bob Katter is seconding the motion.

Katter’s discursive style is hard to quote. He’s talking dairy farmers, ethanol, sugar, big business. Here’s a quote though.

People on my right believe everyone should have arbitration except farmers. People on my left probably don’t believe in arbitration at all, let the free market decide.

Malcolm Turnbull is waiting in the chamber for his turn. The Coalition obviously has something to offer by way of compromise. Usually the PM walks out on a motion for suspension.

Full points to the member for Wentworth ... there is one thing you stand for, you are willing to fight and fight and fight for the banks.

Shorten says the corporate tax cut policy taken to the last election was a gift to the banks.

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Pyne has risen to ask Shorten for a civil debate. Refer to the prime minister by his title rather than his name. Too right, says Speaker Smith.

So Labor did not wait long to bring on the banks motion. I’m told it will be seconded by Bob Katter but I will confirm that when it happens. Bill Shorten is speaking to the motion, which was allowed by the manager of government business, Christopher Pyne. Let’s tip our hat to Pyne for allowing and not gagging. Shorten is full flight on life insurance, swap rate scandals and financial advice.

You can take Malcolm Turnbull out of the investment bank but you can’t take the investment banker out of Malcolm Turnbull.

Every Australian uses a bank but too many Australians are being used by a bank.

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Labor to move suspension to bring on the bank royal commission

That the House:

  1. Notes that:

a) Scandals in the banking and financial services industry have led to:

i. Retirees having their retirement savings gutted;

ii. Families being rorted;

iii. Small business owners losing everything;

iv. Life insurance policy holders being denied justice;

v. Agricultural assets being improperly foreclosed; and

b) Despite several inquiries, new powers, new resources, and a financial ombudsman service, the rorts and the rip-offs continue;

c) It is clear from the breadth and scope of the allegations that the problems in this industry go beyond any one bank, type of financial institution or group of receivers;

d) Labor, Greens, crossbench, Liberal and National parliamentarians have supported a thorough investigation of the culture and practices within the financial services industry through a royal commission, which is the only forum with the coercive powers and broad jurisdiction necessary to properly perform this investigation; and

  1. Therefore, calls on the government to listen to the many victims of banking and financial scandals who are calling for the immediate establishment of a royal commission.

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Turnbull confirms he will negotiate on ABCC bill

Speaking at a work site in Canberra on Wednesday, Turnbull said he would negotiate with crossbench senators to pass the Australian Building and Construction Commission bill, which triggered the 2 July double-dissolution election.

The nature of negotiations is proposals are made, discussions are had, compromises sometimes are achieved.

But Turnbull said the “objectives of the bill must be secured, because that was the commitment we made to the people”.

According to a report in the Australian, the government is willing to consider changes including an eight-year sunset clause for the bill and keeping the current requirement for the building regulator to apply to the Administrative Appeals Tribunal before compelling workers or other witnesses to give evidence.

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At the momento, the house has opened with a ministerial statement, updating the House on the recent military commemorations. Both Malcolm Turnbull and Bill Shorten are speaking about war. In a good way. The human toll. Not glory. Lives wrecked.

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Ah Eric. Eric Abetz. As I said earlier, he has been out in world championship wrestling, doing the tag-team with Cory, defending the 18C frolic. Freedom. Offend. Insult. To the barricades. RN’s Fran Kelly is having her usual robust discussion. She commits the crime of interrupting Eric.

It’s really such a subjective measure and we can say your interruptions to me on this program were insulting and offensive to me because I wasn’t allowed to finish what I was allowed to say. This sort of industry of taking offence on everything has gone far to far in our society.

Fran fires back.

That’s a misrepresentation ... I wasn’t interrupting you because of your race or religion and there are also protections in 18D, which says ‘anything said or done reasonably in good faith will not be rendered unlawful’.

Abetz argues yeah but, no but, yeah but. A “sensitive soul” could argue you were interrupting me because of my race or religion. (Even though I know you are not.)

What we have seen over the past few days, as members ramp up this debate, is the complete misrepresentation of what the Racial Discrimination Act is trying to protect. Obviously racism is so far removed from these people’s experience, they have to use pissant examples of offence. Like interruptions in an interview. Or offending me by insulting my football team. Note to Eric: some people live this stuff because of how they look or who their parents were. They don’t even get a chance to open their mouths. What is free about that?

And there is always 18D. What is it you want to say Eric?

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The revelations that Malcolm Turnbull and Scott Morrison argued for some changes to negative gearing – made in a new book by Peter van Onselen and Wayne Errington – make a lot of sense. Remember back then Morrison argued there were excesses in the system and had to tiptoe back after cabinet decided against it. Sid Maher in the Oz has the report here.

In The Turnbull Gamble, the ­authors reveal the prime minister and the treasurer were “all in favour’’ of making changes to negative gearing but in a “more considered” and “less extreme way” than Labor had.

Asked about the revelations in the book yesterday, a senior source confirmed Mr Turnbull and Mr Morrison had been in favour of changes to negative gearing to remove excesses from the system. One theory put to the Australian yesterday was Mr Turnbull was keen to pursue the change as a counter to attacks on his wealth and improve his status with lower and middle-income earners.

A government spokesman said both the prime minister and the treasurer were vehemently opposed to Labor’s negative gearing changes.

In their book, van Onselen and Errington write: “The issue was debated in cabinet, with Peter Dutton, Josh Frydenberg and Christian Porter arguing against making any changes.’’

All three supported Mr ­Abbott in the leadership ballot that elevated Mr Turnbull to the leadership in September last year.

It is vindication for Labor who took their difficult policy to wind back generous tax concessions on capital gains and negative gearing to the last election. The political heads in the Coalition thought they would have a clean kill on the policy by doing nothing and providing the contrast. It was clear that the electorate was not too worried. Effectively, voters said meh.

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Malcolm has a plan! Bills to be introduced this morning.

  • Fair work amendment (respect for emergency services volunteers) bill
  • Building and construction industry (improving productivity) bill 2013
  • Building and construction industry (consequential and transitional provisions) bill 2013
  • Fair work amendment (registered organisations) amendment bill 2014
  • Primary industries levies and charges collection amendment bill
  • Budget savings (omnibus) bill
  • Treasury laws amendment (enterprise tax plan) bill
  • Treasury laws amendment (income tax relief) bill
  • Excise tariff amendment (tobacco) bill
  • Customs tariff amendment (tobacco) bill
  • Appropriation bill (No. 1) 2016-2017
  • Appropriation bill (No. 2) 2016-2017
  • Appropriation (parliamentary departments) bill (No. 1) 2016-2017
  • National cancer screening register bill
  • National cancer screening register (consequential and transitional provisions) bill
  • National disability insurance scheme savings fund special account bill
  • Transport security amendment (serious or organised crime) bill

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Good morning and welcome to politics live.

As Elvis would say, there is a whole lot of shakin’ going on. The rain is coming down in Canberra, there is a coral installation in front of parliament asking pollies to choose the reef over coal and Malcolm Turnbull is visiting a building site in a high-vis vest.

In the parliament we are preparing for debate and I will give you a full list of legislation in a minute. The reason Turnbull is at a building site is to trumpet that today, children, is all about industrial relations and the Australian Building and Construction Commission. He also wants you to know that he has an economic plan. He says he is willing to compromise on the ABCC bill to get it through. There is your olive branch to the crossbench and specifically Nick Xenophon and Pauline Hanson.

But there are skirmishes and frolics, both within his party and without. Cory Bernardi is introducing his private member’s bill in the Senate to remove the words “insult” and “offend” from the Racial Discrimination Act. This does not mean the bill gets debated yet, it just sits there in the queue. Eric Abetz has been out defending the case in a sterling effort on Radio National, which I shall also bring you shortly.

Turnbull has just been asked about the marriage equality plebiscite.

We know that a majority of Australians support a plebiscite. We know if there is a plebiscite a majority will vote yes. How long will Bill Shorten keep playing these political games?

Late yesterday, the crossbenchers Adam Bandt, Andrew Wilkie and Cathy McGowan came out with their own bill on marriage equality. Labor has flagged theirs but not revealed the draft yet. Expect this any time today or tomorrow via suspension of standing orders. If not, the first Monday of the next sitting, when private member’s business is due.

From the papers, we now know Malcolm Turnbull and Scott Morrison argued for changes to rein in generous negative gearing tax concessions but lost the battle. There are rumblings that the Coalition is preparing another bank initiative in order to head off Labor’s expected motion for a bank royal commission. Meanwhile Labor bank warrior Sam Dastyari is having his own good times, with revelations reported by Latika Bourke at Fairfax that he asked a Chinese donor to pay his travel bills after he exceeded the taxpayer-funded allowance. He says he will donate it to charity and he disclosed it all.

Good times. Noodle salad. All this and more with me @gabriellechan and @mpbowers. Stick around.

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