The wrap
Well, today’s wrap is pretty easy.
Sam Dastyari
Banking royal commission
Sam Dastyari
Banking royal commission
And repeat.
So Sam Dastyari has been demoted, over the same event he was demoted over last year. Bill Shorten says he has a long way to go until he will be able to trust Dastyari’s judgment again.
But Labor got some headline relief when Malcolm Turnbull was forced to announce a royal commission into the banks, something he had ruled out as a possibility just days ago. He also appeared to admit that the twist came because the government did not have control over the numbers. It is not only facing two byelections, it was also staring down a Nationals revolt. So the big banks released a letter that basically said, we support an inquiry, because you need to fix this, and lo and behold, what did cabinet decide this morning?
It is “regrettable but necessary” says the prime minister, who seemed remarkably calm (or dead inside, you make that call) at having to announce what is probably the biggest political about-face of the year.
While the government may not be wanting to claim credit for the royal commission, practically everyone else in the parliament has.
In no particular order, the Nationals, the Greens, Labor and One Nation have all claimed a victory for the $75m inquiry.
So at least some people are happy.
Tomorrow, Michaelia Cash is expected to front up to the Senate committee, which is examining her office’s role in tipping off the media about raids on the AWU. That would be the raids that she denied multiple times had anything to do with her office, before Buzzfeed broke the story the tip had indeed, come from one of her staffers. The staffer resigned, the AFP are now investigating and Cash sent George Brandis in her place for the last hearing. I expect tomorrow’s answers will refer back to the police investigation quite a bit (as in that’s why questions won’t be answered). You can follow along here
That is it for me this week. I will be back with you on Monday, when we’ll know the results of the New England byelection. The House will also have to deal with the marriage equality laws. The Senate will now be forcing penalty rates onto the agenda and there will be nary a slice of festive spirit to be found. Oh what fun!
So please do rest up over the next couple of days and hold on to your eggnog (I can say that now, it’s less than a month) because next week is going to get rough.
A massive thank you to everyone at the Guardian for pulling my carcass across the line this week, after the Queensland election (last time I checked, Labor was still two short of a majority and there is just a handful of votes which will be deciding some key seats) and of course to Mike Bowers, who is an absolute marvel. If you have not visited his Twitter (@mpbowers) or his Instagram (@mikepbowers) you should.
And thank you to you, for all of the comments, jokes and yes, even the complaints. Feel free to send through more at @amyremeikis until we meet again on Monday.
Have a wonderful weekend!
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Nationals senator John Williams is also on Sky. He congratulates Barry O’Sullivan for the work he has done, and says O’Sullivan worked with the Greens, Labor (he names Sam Dastyari) and Katter’s Australian party.
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For those wanting more Stephen Conroy, Sky has cut up a bit from the interview and posted it here:
.@ConroyMO: @samdastyari is a friend of mine and I trust him - but his colleagues will take time to trust him. MORE: https://t.co/BLat7oDVHS pic.twitter.com/HO6c2Pgzt5
— Sky News Australia (@SkyNewsAust) November 30, 2017
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The Australian Bankers’ Association has responded to the Turnbull government’s decision to allow a banking royal commission.
It says the royal commission is “unwarranted”, and fails to recognise that Australia’s banks are currently undergoing “the largest reform program in decades”.
But it has conceded that constant calls for inquiries and related consequent political turmoil has presented an unacceptable risk to the stability of the financial system and the reputation of Australia’s banks.
It says the major banks have accepted that, given political events, an inquiry of some sort was inevitable.
“Australia’s banks have welcomed the prime minister’s decision to take action and provide certainty to the banking industry to the benefit of the national economy and all Australians,” the ABA said in a statement.
Banks will fully cooperate with the royal commission … our banks do not fear scrutiny or accountability.
Australia’s banking and financial system is too important to leave in the hands of minor parties and fringe elements in the parliament.
The possibility that terms of reference on something this important could be the subject of political horse trading should worry every Australian.
It’s a prospect that caused such concern to the leadership of Australia’s four major banks that their chairs and CEOs took the extraordinary and unprecedented step of calling on the government to hold a properly constituted inquiry.
The major banks acted in the national interest to minimise more serious risk to the banking sector and welcome the fact that the government has stepped in to bring certainty to this issue. Labor’s support for a royal commission is also acknowledged, as is that from other parties.
“Bipartisan agreement on a properly constituted inquiry, free from political interference, is the best way forward if we are to avoid further damage or harm to Australia’s financial services sector.
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Back in the Senate and Labor has forced the government to put its penalty rate legislation up next week in the Senate, making it the priority legislation for Monday.
Just because there was not enough going on.
Stephen Conroy has popped up on Sky, talking about Sam Dastyari.
He says he didn’t know about the press conference, where Dastyari contradicted Labor’s policy, which was being pushed by Conroy, over the South China Sea.
Conroy says it is “disappointing” Dastyari both had the press conference and said what he did, and when he found about it – when it was reported months later – they had a few words about it.
Conroy says once the tape came out, Dastyari was “destined to resign ... again ... resigning twice over the same event is quite the achievement”.
But Conroy says Dastyari had no national security information he was able to reveal, and he is a young man who has gone “further and faster in his career than was wise”, but he needs to take a “deep breath” and think about what has happened.
Treason is a big call, I listened to someone say that last night, this is not the case, this has not been proven, and just to make a grab for a bit of publicity, it is very serious.
He should consider where he wants to go in the future ... if he wants to put up his hand for advancement in the future, he needs to wait some time.
... He has run too fast, he has got ahead too fast and I think he has done significant damage [to himself] in the eyes of his colleagues ... but I think he is a very talented individual.
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I said yesterday that I would post about Jordon Steele-John’s maiden speech and I have been quite tardy with that, so I apologise.
But the Greens senator delivered his first speech in the Senate on Wednesday, and the youngest person ever elected to the chamber had quite a few lovely things to say about what he sees as his role. Here he is talking about what the response was when he asked a question on social media about what his first speech should include:
I would ask everyone here today to reflect upon the way in which we here view the idealism of those who do not work in this place, and how easy it is to dismiss the aspiration and the belief that we can be better and that we can do things differently as simply naive.
I know from personal experience that my generation is one alive with the desire to make change, cognisant of the fact that if we do not do so the world in which we will live as a generation will be so much bleaker for it.
Then there were, of course – we must remember that this is, after all, the internet – those comments of a slightly more humorous nature. My favourite so far has been the suggestion that the government might perhaps try turning itself off and back on again – that was the cleanest one we could find! This mixture of hope and frustration, of sadness and aspiration, does not come as a surprise to me personally.
These sentiments very much reflect those which drove me to be involved in politics and which are with me as I sit here tonight.
They are also the sentiments which drove into existence the party which I am so proud to belong to: the desire for a world based on social justice – one that protects the environment in which we all live; the desire for politics which truly involves people in decision-making processes; and the need for a government which seeks peace at every opportunity. These are the core tenets of the Greens party and our movement. I’m incredibly proud to sit here among colleagues who have borne the voice of that movement into this place.
I believe it is very clear to anybody who takes the time to look that the Australian people are no longer satisfied with what they are getting from their politics. They will not cop politics as usual any longer. They know we can do better. They ask us to do better. They demand a new deal from their politics. And while I am here, that is exactly what I intend to work with my colleagues to achieve.
With the time I am given here, I will be a tireless champion for a fundamental change in the way that society thinks about people with a disability. We must now recognise that disability is not created as the result of various medical impairments, but is, in fact, created by society’s collective failure to adapt to, embrace and celebrate the varying levels of ability which we all have.
You can read the whole thing here, on page 77 of the Senate Hansard
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As always, Mike Bowers takes you there:
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Sam Dastyari's second statement to the Senate.
Statement from Sam Dastyari:
As I’ve previously stated, I became acquainted with the Chinese businessman [Huang Xiangmo] as he was a prominent local Chinese community leader in Sydney. As the Senate will appreciate, there are over one million Chinese Australians. It is not uncommon for there to be large community functions regularly at which Chinese community leaders are present. As the general secretary of the Australian Labor Party New South Wales branch, I would regularly be in contact with representatives of every community in New South Wales.
These included ethnic, corporate and community organisations. The Chinese businessman was a regular attendee at Labor Party functions and he also attended many Liberal Party functions too. I have here a document I would like to table of donations data downloaded from the AEC website for the benefit of the Senate.
A series of allegations were published in the Fairfax media on November 29, 2017, regarding a meeting between myself and a Chinese businessman. As I told Four Corners months ago, after the events of last year, I spoke to him to tell him that I did not think it was appropriate that we have future contact. I thought it was a matter of common courtesy to say this face to face with Mr Huang. Neither my office nor I have spoken to Mr Huang since. This information has been publicly available since June. I utterly reject any assertion that I leaked intelligence information to Mr Huang.
Let me reiterate that I have never been provided intelligence information by any Australian security agency, ever. I have never passed on intelligence information, I have never been in the possession of any. In June 2016 I held a press conference that was targeted at Australian Chinese media and the Chinese-Australian community. Mr Huang was included in the press conference as the presence of a prominent Chinese community leader would help attract better media coverage from Chinese-language media and their target audience.
This is standard media practice for Australian political parties from across the spectrum when seeking to engage with multicultural communities. I do not have the full details of what was said at the press conference. However, I understand footage has been disseminated to media outlets.
The topics that were prominent in the Chinese media at the time of the press conference included the Australia-China FTA, negative gearing, the new Chinese ambassador, the South China Sea, Pauline Hanson before she became Pauline Hanson, senator, and the controversy over the Safe Schools program.
At the press conference I made comments that were in breach of Labor party policy on issues relating to the South China Sea. While I do not have a copy of the transcript of the press conference, I understand a copy of those comments has been disseminated to media outlets. I have never denied the – sorry, I have never denied that contradicting Labor policy was a significant mistake, and I resigned from the Labor party front bench over it last year.
I have been a member of the Labor party since I was 16 years old. I’ve held numerous positions, including the general secretary of the New South Wales branch, and I’ve had the privilege of being elected as a senator.
I understand the importance of collective policy development and the consequences of breaching party discipline. I let myself down and my party down by contradicting party policy and I paid the appropriate penalty. More recently, my characterisation of the press conference was called into question. A recent audio recording shocked me as it did not match my recollection of events.
I personally take responsibility for the subsequent mischaracterisation. When a public official makes a statement that contradicts events, there are consequences. For me, the consequence was being called last night by my leader, Bill Shorten, and being asked to resign from my position in the Labor Senate organisational leadership. I accept the decision of my leader and, accordingly, today I resign my Senate leadership positions.
On November 20, 2014, I declared Mr Huang’s group made a payment of an outstanding legal matter for me. This payment has been on the public record for over three years. The existence of this payment has been reported in the media as far back as an article published in the Sydney Morning Herald 18 months ago on March 28, 2015, entitled, “Donor stepped in to help Dastyari”, which I table for the benefit of the Senate.
For the sake of completeness, other gifts and hospitality from companies associated with Mr Huang are also disclosed on my statement of interest for this parliament and the previous parliament in accordance with my obligations to the Senate, noting I first entered the Senate in 2013. I thank the Senate.
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I will get that statement to you as soon as possible. It wasn’t much more than we heard earlier today, to be honest.
George Brandis moves on with the next element of Senate business.
Sam Dastyari returns to the Senate floor
As ordered, Sam Dastyari has returned to the Senate to give a more detailed statement of his relationship and dealings with Huang Xiangmo.
Lucy Gichuhi and Derryn Hinch look as if they are enjoying Senate question time.
Meanwhile in the front benches...
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Scott Morrison has been busy today – he also did radio 6PR.
Here he is explaining again why this is not a turnaround on the government’s ‘no banking royal commission’ position (I refuse to use the term backflip, because a backflip leaves you facing the same way you started).
It became regrettably necessary because of the continuing damage that was being done, and if there was to be a commission of inquiry with a terms of reference that was completely out of control and would only cause further damage. In politics sometimes you have to choose the least worst option and, up until now, that meant the course that we had been on for a long time. We were taking action, we were doing everything from how to deal with complaints, making banking executives accountable, all of these things and none of that will change, all of that needs to continue.
But now it is necessary for the credibility and strength of our banking system to not allow further damage to be done, and by the recklessness of the politics that has been played courtesy of Bill Shorten. He is a fraud and a fake when it comes to this issue on the basis that he has held out this as being some sort of cure-all for everything but he has no banking policy of his own. It was an excuse [for] him not having a policy, and the terms of reference he couldn’t even identify. The government is taking this in hand in the national economic interest.
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I have been transcribing and watching and reading and listening like a mad woman today and, meanwhile, Mike Bowers has been making magic.
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O Canada – you have a new high commissioner.
From Julie Bishop’s office:
Today I announce the appointment of Ms Natasha Smith as Australia’s next high commissioner to Canada.
Australia and Canada enjoy a close relationship, which reflects a long shared history, common values and institutions, and broad people-to-people and economic links.
We have strong trade and investment ties, with two-way investment totalling $85 billion in 2016, making Canada our seventh largest source of foreign direct investment. Our trade relationship is deepening and in 2016 Australian merchandise exports to Canada grew by approximately 14 per cent while Canada’s services exports to Australia increased by 15 per cent.
Canada is an important international partner, and we cooperate on a range of issues including on climate change, addressing global migration, maintaining global peace and security, reconciliation with indigenous populations and empowerment of women and girls. We work closely together in APEC, the G20, OECD, WTO and the United Nations. Australian and Canadian defence personnel have served side by side for over 100 years and continue to do so in the Middle East.
Ms Smith is a senior career officer with the Department of Foreign Affairs and Trade and was most recently first assistant secretary, Multilateral Development and Finance Division. She has served as assistant secretary, Humanitarian Response Branch, and assistant secretary, Integration Task Force. She has previously served overseas as counsellor (development) at Australia’s permanent mission to the United Nations in New York and first secretary (development) at the Australian embassy in Jakarta.
Ms Smith holds a bachelor of economics from James Cook University.
I thank outgoing high commissioner Tony Negus for his contribution to advancing Australia’s interests in Canada since 2015.
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Scott Morrison spoke to 5AA radio today and sought to clarify Malcolm Turnbull’s comments, or at least the impression from his comments, that the banking royal commission was happening because of changed political circumstances – that being two byelections and a Nationals revolt.
Here is what Morrison had to say about whether it’s because the government has lost control of the numbers in the House:
No, that’s not what we were saying and that’s not the impression that was sought to be given. This is what’s happened – the politics of this issue had reached tipping point this week, which meant there was being damage done to the banking system as a whole, upon which pretty much, I would say, every Australian’s job depends. It had reached such an unhelpful and damaging and disruptive stage – caused by politics – that it was necessary to take what we’ve said is a regrettable but necessary action.
That is based on shared advice in my discussions with the governor of the Reserve Bank, the chairman of the Prudential Regulatory Authority and, indeed, as people would have seen earlier today, the four biggest banks have also said that this had reached a point where it was causing damage. So the government had to effectively take this into control. The alternatives that were before the country would have been even far more damaging and so the government has taken the action that we have.
So we’ve always done what’s necessary in the national economic interest on this issue. The Labor party and Bill Shorten in particular has been a fraud and a fake on this. He has played politics with this, he has damaged the economy over this and he should be held accountable for that, but the government will get on with the job of government.
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Back to Bill Shorten for just a moment – next week the citizenship disclosures are due. The Senate ones should happen on Monday, although the resolution hasn’t gone through in the House, so we don’t know when those ones will be coming down.
But asked about it, Shorten doesn’t seem to rule out that Labor will be free from problems on this:
I have to see all the disclosures. I believe the Labor party secretariat has done its homework. I believe our standards are demonstrably superior to what has happened, for instance, with the National party.
Let’s see all the disclosures. I’m not ruling it out, that would be premature without seeing the disclosures. Labor are the ones who pushed for universal disclosure.
This is another example of Turnbull being forced kicking and screaming to an outcome he didn’t want. We accepted that after the Parry matter, where senator Fifield knew about it, we pushed for universal disclosure. We pushed for proper disclosure. Where that leads us, we will have to see next week, but I say to Mr Turnbull, don’t unreasonably delay any referrals because you are waiting for Barnaby Joyce to come back to parliament.
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I have just tuned back into the Senate, where George Brandis just asked Kim Carr:
“Why are you so obsessed with politics?”
That would be the politician asking the politician, why they are so obsessed with politics. In the parliament.
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And finally:
What Malcolm Turnbull has done today is that he has admitted everything else he has done has been a waste of time, a stalling and delaying tactic. As I said, today we realised the emperor has no clothes. Malcolm Turnbull is prime minister in name only.
My, oh my, won’t question time be fun next week!
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Bill Shorten is not holding back from Malcolm Turnbull here:
He showed the enthusiasm of the early Christians being fed to the lions about this banking royal commission. Have you ever seen such a hostile, passive aggressive performance as Malcolm Turnbull put on this morning? He doesn’t want this royal commission. He thinks it is regrettable. He has been forced to do it because if he does not, he will lose control of his government.
I think today was a nail in the proverbial coffin of Malcolm Turnbull’s prime ministership – the proverbial coffin. For 600 days he has said the worst idea in the world is a banking royal commission, and now he has backflip[ped]. I think it is the right decision. We have always thought it is the right decision.
I say to Malcolm Turnbull, if you really think it is a bad idea, don’t do it, mate. People can suss out a phoney when they hear it at 100m. He thinks it is regrettable, he thinks it is bad policy, but he is doing it. I put him on notice. You may have consulted the banks to get permission from them to do the royal commission.
Has he reached out to any victims’ groups, has he tried to reach out to any of the many groups representing tens of thousands of people and invited them to take a crack at the terms of reference? And who is he going to appoint to be in charge of this royal commission?
If he is looking to Dyson Heydon or somebody, that is not going to wash. I have grave concerns that he is the most reluctant conscript to a banking royal commission I have ever seen and I hope [he] does not try to sabotage it by doing dirty deals with the banks, working out the terms of reference, getting the permission of the banks. He should sit down with the victims’ groups. And I will give him some more advice. For once in your life, instead of [attacking] the opposition, sit down with us. It was our idea.
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Will Sam Dastyari be back on the front bench?
I think having sacked him once, and now again, having removed him and stripped him of additional responsibilities, he knows that his colleagues are deeply frustrated with him, and he has a long journey to rebuild trust ... I stripped him of his positions. I think I have been pretty clear. He has a long, long journey to rebuild trust.
... Well, it wasn’t impossible but Tony Abbott could turn up as leader. Let’s be clear. He has a very long way to go. Again, I cannot be more clear on this. I am deeply disappointed with senator Dastyari. As leader of the Labor party, that he has put me in a position where I have to sack him again, and the point about this is that I think he will know his colleagues are deeply, deeply frustrated with his very poor judgment.
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More on Shorten on Dastyari:
“Let’s be clear. I speak with the security agencies on a regular basis, as I should, and I never divulge [confidences]. But I am satisfied he has not broken any law. And he is not a national security risk, which was at the heart of some of the questions in the Liberal attack. What I am not satisfied with is his judgment. What I do believe is that what emerged yesterday and last night does require penalty, and does require punishment, and that is what I have done.
Question: How can you trust his judgment again?
“Well, at the moment, I don’t trust his judgment again.
Question: You’ve got a senator sitting up there, who you restored to a position, only to sack him again. You say you have no faith in his judgment, yet you say he is happy to represent New South Wales in the Senate? You are happy to have him represent New South Wales?
“He was elected by the people of New South Wales. What I have done is strip him of any position other than being a backbencher. To the best of my knowledge, if you have other information, by all means, what law has he actually broken?
Question: He has done this twice. You say you have no faith in him. He is an embarrassment to the Labor party.
“Thanks for sharing your opinion with me. I don’t share your opinion. I did actually say ... have you finished? If you have finished, I will answer. Thanks for sharing your opinion that you don’t like senator Dastyari. In my case, I have lost faith in him and I do think his judgment was erroneous, and he made a significant mistake of judgment. That is why I have sacked him again. I do not believe he has broken the law and I do not believe he is a national security risk, and I have to say, based on my knowledge, I am confident in my judgment.
“I won’t go into the ins and outs. As a result of his actions, which have come to light yesterday, that is why I sacked him. Because I am not satisfied that is the right standard of somebody holding a leadership position in the Labor party.”
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Shorten on Dastyari 'he has poor judgment'
Bill Shorten admits that he does not “at the moment” trust Sam Dastyari’s judgment:
I spoke to the senator last night and I told him I wanted him to resign from all of the senior positions that he holds within the parliament. I have done this because I believe that [he mis]characterised his position from a press conference last year. He mischaracterised his position.
What I want to make clear is that I have noticed the government has been keen to attack senator Dastyari and accused him of a lack of loyalty towards his adopted country. I reject that completely. As for what other members of parliament have done, I think Mr Turnbull [is] now honour-bound to explain why he has not [banned] taking donations from certain organisations – certain organisations and people – like Labor has done. He is now honour-bound to introduce a donations registry, and [to] stop stuffing around and ban foreign donations.
... New facts came out in the last 48 hours ... Let me answer your first question, or your second question, before you ask your third. New facts certainly came out in the course of yesterday and last night, and I felt it was untenable. I think senator Dastyari, as best I can tell, and I believe this, has not broken any laws. But he has poor judgment and I think everybody recognises that. So I have taken steps to strip him of positions he was otherwise holding. And I think, you know, at an individual level, as a human being, I feel for him. But as leader of the Labor party I resent, and I am frustrated, that he put us in a position where I had to ask to sack him. I think he has a long journey to take before he can rebuild, and that is why he is on the back bench.
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George Brandis moves a motion-supported by the greens and cross bench senators-recalling Sen. Dastyari to explain his actions in greater detail #auspol @AmyRemeikis @GuardianAus @murpharoo #politicslive https://t.co/geZ9MUWVXM pic.twitter.com/WdIj6STgKR
— Mikearoo (@mpbowers) November 30, 2017
On the banking royal commission, Bill Shorten had this to say:
I just want to address the backflip that Mr Turnbull has committed today with his royal commission. This is a victory for Labor. But more importantly than that, it is a victory for the people of Australia. It is a victory in recognition of the circumstances of literally tens of thousands of our fellow Australians who have been customers of banks. I talk about individual retirees, I talk about farmers, I talk about small business. These people have called for a royal commission and I am pleased that after 600 days, Labor’s relentless campaign for a banking royal commission is finally getting traction. I mean, for 600 days Mr Turnbull and Mr Morrison and the rest of the government have literally attacked Labor up hill and down dale and said that a banking royal commission was a terrible idea, that it would lead to all sorts of terrible consequences. A banking royal commission.
Labor has been the voice of the victims, the voice of people who have been ripped off, never giving up. It is frustrating that Mr Turnbull has finally arrived at the banking royal commission for all the wrong reasons. Only when the four big banks signed a permission [form] did [Turnbull] give in and have a royal commission. We all know that Mr Turnbull is supporting a banking royal commission, not because he believes in it – he has called it regrettable, he thinks it is the wrong policy. He has done so to keep his job and avoid further embarrassing splits within the government. We now have a prime minister who has lost control of his party. Malcolm Turnbull has lost control of the parliament. Malcolm Turnbull is a prime minister in name only.
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I’ll bring you some more from Shorten in just a moment, but first, from the AMA:
Unfortunately, despite our strong arguments, the Government has at this stage rejected our request to send doctors to assess the health of asylum seekers on #Manus https://t.co/behNSDf383
— AMA Media (@ama_media) November 30, 2017
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Bill Shorten is holding a press conference in Adelaide.
It’s meant to be about renewable energy
It will be all Sam Dastyari and the banking royal commission.
The Institute of Public Affairs is not happy with the banking royal commission:
“A royal commission into the banking sector is a bad idea because it will not solve the key problems in that sector: too much red tape and a lack of competition,” said Daniel Wild, research fellow with the free-market think tank the Institute of Public Affairs.
The quality of Australia’s banking sector will not be improved by a royal commission. Only competition will improve quality and make the banks more responsive to the needs of consumers.
This is another example of businesses asking governments for favours. It is the responsibility of banks to clear up any uncertainty over their commercial operations, not taxpayers.
Abolishing the four pillars policy would immediately make the banks in Australia better by exposing them to the prospect of being acquired or taken over. Currently, the government protects the banks from that possibility and this makes them unresponsive to the needs to consumers.
Crony capitalism, where big businesses work together with big government, is a big problem in Australia. The solution is to adopt pro-market, rather than pro-business, reforms, which means cutting red tape and cutting taxes.
A highly regulated banking system serves the interests of large, incumbent banks who rely on regulation to bolster their market share and profits at the expense of smaller competitors and customers.
The government must also remove the “too-big-to-fail” policy, which guarantees that taxpayers’ funds will be used to bail banks out in the event they become commercially unviable.
If a royal commission is to go ahead, its terms of reference should include the governance of industry super funds. IPA research released this week revealed that more than $18,438,516 million (in 2017 dollars) found its way to Australian trade unions between the 2013-14 and 2016-17 financial years, via the payment of directors’ fees.
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More motions, this time from Derryn Hinch.
He wants to talk about assisted dying. Labor, I understand, will treat this as a conscience vote.
Leader of Derryn Hinch’s Justice Party (senator Hinch): To move that the Senate:
a. Congratulates Victoria on the recent passage of voluntary assisted dying legislation.
b. Encourages all Australian states to follow suit.
c. Calls upon the federal government to respect the wishes of the residents of all Australian territories with regards to dying with dignity.
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Here is the motion in full:
(1) Senator Dastyari be required to attend the Senate chamber at 3pm on 30 November 2017 to make a statement of not more than 20 minutes, addressing:
a. The nature of his relationship with Mr Huang Xiangmo.
b. The allegations made by Fairfax media on 29 November 2017 that senator Dastyari gave Mr Huang counter-surveillance advice and conducted a covert conversation with him during a meeting at Mr Huang’s home in October 2016, including full details of the covert conversation.
c. The press conference held by senator Dastyari on 17 June 2016, and in particular:
(i) the nature of Mr Huang’s involvement in the decision to hold the press conference;
(ii) full details of what was said by him at the press conference;
(iii) the reason why he used the press conference to specifically contradict official Labor party policy on Chinese territorial claims in the South China Sea;
(iv) the reason the press conference was restricted to Chinese language media; and
(v) why he subsequently gave untruthful accounts of what he had said at the press conference.
d. The nature and value of all payments made to or on behalf of senator Dastyari by Mr Huang or at his direction.
(2) That any senator may take note of senator Dastyari’s statement for a period of up to 90 minutes.
The ayes won it, 41 to 19.
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Pauline Hanson says One Nation is also in support.
So the government has the numbers.
Looks like Sam Dastyari is heading back to the Senate chamber to give that more detailed explanation after question time.
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The Greens also look as if they are supporting the motion, at least in part. Richard Di Natale calls his previous statement “completely inadequate” and says he should come back in and give a more detailed explanation.
The Greens are not supporting the second part of the motion, which basically would allow senators to give their own statements to his statement.
Di Natale also says questions need to be asked over “how this information came to light” and whether security agencies were involved, and whether the government had any conversations with security agencies over that information.
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Paul Karp has an update on where the marriage equality bill is likely to go next week:
Malcolm Turnbull has revealed he will support at least two amendments to the Senate’s same-sex marriage bill to guarantee that charities will not be affected and to allow civil celebrants to refuse to solemnise weddings.
You can read more on that here
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Dipping back to the Senate and the government is moving a motion to try to force Sam Dastyari back to the chamber to give a more detailed explanation of all the allegations.
Derryn Hinch is in support so far.
Ian Macdonald says he is uncomfortable with these sorts of issues, but thinks Dastyari didn’t really address the issue in his statement to the chamber this morning, and should be given that opportunity.
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At least someone in this building is having fun:
PM🎩 eight days ago on @sunriseon7 "I can tell you that we as a Government, we have decided not to have a royal commission." #auspol
— Shorten_Suite 🌈 (@Shorten_Suite) November 30, 2017
.@ScottMorrisonMP on Royal Commission: "It is a political exercise for a political hack." #auspol https://t.co/u9VMJsJfkz
— Shorten_Suite 🌈 (@Shorten_Suite) November 30, 2017
Updated
Speaking on Sky News, Brendan O’Connor says it is obvious Malcolm Turnbull was forced into the banking royal commission.
He turns to Sam Dastyari and says, unlike Michaelia Cash, he has taken responsibility and stepped down from his parliamentary roles.
“I think that is sufficient punishment for him mischaracterising [his statements on the South China Sea].”
He says Cash has received no punishment and is “hiding behind an investigation by the Australian Federal Police”. Cash is due before a Senate committee to answer more questions on that soon.
O’Connor also wants to know how the information regarding Dastyari “ended up on the front page of Fairfax newspapers” and whether the government was involved. He calls on George Brandis to investigate the leak:
I think it is already clear that there has been reporting on senator Dastyari but that reporting arises from what is clearly now, or alleged, national security information ... that in itself is of concern, it should be of concern for those who put national security as a number one priority.
Updated
Slight break from politics (but which I am sure the usual players will have plenty to remark on).
BREAKING: The Family Court has ruled that trans teenagers no longer need to go to court for hormone treatment if child/parents/doctors agree. Huge news.
— Lane Sainty (@lanesainty) November 30, 2017
This is very big news and brings Australia in line with other nations.
Updated
Lunch summary
Quick recap while I eat a sandwich one-handed and drop half of it on the floor.
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Sam Dastyari has been demoted (again) after further information regarding his contact with a Chinese donor became known.
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Bill Shorten told him on Wednesday night he had to step down from his parliamentary responsibilities (deputy whip and, unofficially, attack frontman).
- Dastyari will remain in the Senate.
- The government is pushing for Dastyari to resign or for Shorten to sack him.
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Malcolm Turnbull says he has shown “he does not put Australia first” and it is time “he got out of Australia’s parliament”.
- Cabinet decided to allow a banking royal commission.
- The banks released a letter they had sent to the treasurer saying they wanted an inquiry.
- Turnbull basically admitted his change in policy was because circumstances (two members down in the House and a looming Nationals revolt) had changed.
Updated
Chris Bowen has weighed in on the banking royal commission:
Malcolm Turnbull’s banking royal commission is unravelling already, with revelations banking victims’ groups were not even consulted on its terms of reference.
It’s becoming clear that the Turnbull government worked with the banks to help develop its terms of reference, not victims or their representatives. The government is deliberately limiting the scope of the royal commission to deny victims the chance to tell their stories.
Malcolm Turnbull has let the rorts and rip-offs continue for more than 18 months so he could protect the banks and protect his job. Now he doesn’t even bother talking to banking victims when he backflips. What an insult to these people who’ve fought so hard for justice.
For a successful and comprehensive royal commission now [to] occur, it is critical that victims’ groups, the opposition and other stakeholders are formally consulted on its terms of reference.
Given Malcolm Turnbull repeatedly said today that this royal commission was “regrettable”, and he’s fought holding one for more than 600 days, it’s crucial he consult on its terms of reference to ensure the integrity of the royal commission.
Updated
Nationals parliamentary leader Nigel Scullion has released this statement (after George Christensen’s press conference):
The federal Nationals have today welcomed the prime minister’s announcement of a royal commission into banks and financial services.
This comprehensive inquiry became necessary to restore trust and confidence in Australia’s banking and financial sector following years of concerns, particularly in rural and regional communities, about alleged misconduct and unethical behaviour by the banks.
The Nationals will always fight for the regional communities and rural industries we represent and we believe today’s announcement reflects our commitment and the government’s commitment to those communities and industries.
Despite the government putting in place a number of inquiries over recent years to examine and improve the conduct of our financial sector, it was clear there remained widespread community concern that only a royal commission could address.
A royal commission will put an end to the uncertainty and doubts about the misconduct of our banking and financial services industries once and for all.
Importantly, the royal commission will look at a range of financial services including banks, insurers, financial services providers and superannuation funds (not including self-managed superannuation funds). It will also consider how well equipped regulators are to identify and address misconduct.
For more information about the royal commission, including the draft terms of reference, visit http://sjm.ministers.treasury.gov.au/media-release/124-2017/
Updated
You can add Pauline Hanson to the list of people claiming credit for the banking royal commission.
ONE NATION MEDIA RELEASE | One Nation Bank Inquiry forces Turnbull’s hand for Royal Commission. #auspol
— Pauline Hanson 🇦🇺 (@PaulineHansonOz) November 30, 2017
LINK: https://t.co/KM5VULUTnu pic.twitter.com/xk87PGUktK
I know it has been a busy morning, but could I make a late suggestion for quote of the year? (It was in the blog earlier, but it is still making me chuckle):
The government’s policy remains the same until it’s changed, Laura.
That was Malcolm Turnbull responding to the Fin’s Laura Tingle on why he has changed his mind on a banking royal commission that, just hours ago, he was explaining there was no need for.
We have reached the very zen level of Turnbull’s prime ministership. I may get that put on a t-shirt.
Updated
What has the news of the royal commission into the banks done to shares?
Banking royal commission #auspol pic.twitter.com/y8GqrF6Ut8
— Gareth Hutchens (@grhutchens) November 29, 2017
But Christensen isn’t necessarily ready to give the government any credit for this:
But what I’ve got to say, does annoy me, on these issues that are just quite easy issues, as far as I’m concerned, almost two-thirds of Liberal National Party supporters, according to opinion polls, time and again, support a royal commission into the banking sector.
I just don’t understand why it took, you know, a number of National party backbenchers to drag the prime minister kicking and screaming to this decision.
But we’ve got the decision, it’s a good decision, and I’m hoping that this is going to be a thorough root and branch review of the banking sector, it’s going to weed out these systemic cases of misconduct, and perhaps criminal actions by big banks, and we’ll get some justice for the victims of banking misconduct.
A little insight into the internals of the Nationals there.
Updated
George Christensen is speaking from Townsville in north Queensland and he appears pretty happy with the banking royal commission. Christensen was one of the Nationals MPs who was threatening to cross the floor to ensure an inquiry got up ... a threat he made a few times.
He has joined the list of people claiming credit for the royal commission, which so far includes Labor, the Greens and the Nationals, as well as the banks and, I guess, eventually the government will also claim credit for it, but right now it is “regrettable but necessary’’.
Here is some of what Christensen had to say:
It’s very welcome news. It’s very welcome for those many, many Australians, particularly farmers and small business owners that I’m aware of, mums and dads, who have been victims of misconduct by the banking sector. I think that, you know, I’ve seen an array of cases come through my office from people both locally in this region and from outside of my electorate where there have been quite clearly unethical actions. From the evidence that I’ve seen, fraudulent and even criminal actions. It’s been that [many] cases, it’s not just an isolated incident.
This is systemic, and why I have believed for quite some time, a royal commission, or a commission of inquiry, which has very, very immense powers, powers to have people appear, powers to actual[ly] force evidence to be produced, that was definitely needed and today we’ve got it.
... I think the writing was on the wall. A group of National party backbenchers got together and said enough is enough. Our people are saying that something has got to be done and we basically forced the government’s hand into doing what it did. I think the banks also saw the writing on the wall politically, and so gave that pre-emptive strike to allow the government [to do] what it was going to do this morning. This was going to be a reality. A reality because a group of National party MPs got together, to stand up for, mainly people in the regions – farmers, small business owners – who have been impacted time and time again by unethical and I believe in some cases, fraudulent and criminal cases, cases of misconduct that the banks have committed against them.
Updated
Doug Cameron had a little bit to say about his Labor colleague Sam Dastyari’s future this morning:
Will he bounce back? I don’t know, I really don’t know what the situation is, but I have got to say to you I think there have been worse examples in terms of providing China with preferential treatment.
There’s been Andrew Robb who as the minister for trade came up with a China Free Trade Agreement that provides nearly unlimited access to Chinese workers into this country, no consideration of Australian jobs in that agreement, and then as soon as he finished in parliament he goes and works for a Chinese company.
So I think there are issues, we have said that foreign donations should be banned and it’s really up to the federal government to step in and support that position to make sure there is no impression of any undue influence.
Updated
Popping into the ACT Legislative Assembly for just a moment – and one of its committees will be investigating ACT Labor senator Katy Gallagher’s 2015 declaration that she was not a foreign citizen and was therefore eligible to be named as a senator.
Gallagher was forced to deny she was an Ecuadorian citizen through descent earlier this year. You can read a little more on how this (new weird) element in the citizenship saga came about here
Labor Senator Katy Gallagher's 2015 declaration to the ACT parliament that she was not a foreign citizen and therefore was eligible to fill a causal vacancy in federal Parliament will be investigated by an Assembly committee #auspol
— Tom McIlroy (@TomMcIlroy) November 30, 2017
Updated
Greens leader Richard Di Natale says with the announcement of the royal commission into the banks “we might finally see some justice and the toxic banking culture now addressed as it should have been many years ago”.
Di Natale paid credit to Peter Whish-Wilson, who he said was “the major reason that we are seeing these changes today”:
It just shows you can achieve effective things from opposition, you can lead the debate, even though you might not be in government.
I do say though, it is quite clear that Malcolm Turnbull has been resisting this at every opportunity. Malcolm Turnbull is not worried about confidence in the banks, he is worried about confidence in his leadership. That is real issue here.
He also talked about this debate entering dangerous territory. The dangerous territory Malcolm Turnbull is worried about is his leadership, not the toxic culture within the banks.
Updated
Barry O’Sullivan, who was about to create a very uncomfortable situation for Malcolm Turnbull by refusing to back down on his plans to introduce a bill calling for a banking royal commission, has had a little bit to say this morning (but not much).
I think we have a prime minister who has listened and had the capacity to make and support a decision and I think that’s positive ... It wasn’t a private member’s bill which dragged the prime minister to the table, he was making his own journey in relation [to] these matters.
It might be worth pointing out that when Turnbull was thanking members of his team who had pushed this, he mentioned Warren Entsch and Ann Sudmalis (Morrison later added Julian Leeser and David Coleman), but omitted any mention of George Christensen or O’Sullivan. So it turns out that complaining inside the tent gets you some public adoration, but playing out your plans in the media gets you nada.
Updated
Mike Bowers caught the scenes before, during and after Sam Dastyari’s statement to the Senate this morning.
Updated
Steve Ciobo has released a statement offering Harry Windsor and Meghan Markle the services of Tourism Australia to design either pre-wedding celebrations or a honeymoon, because of course he has.
Penny Wong has now taken to the chamber floor to talk about Sam Dastyari. She says he did the wrong thing and it is appropriate that he resign as deputy whip and other parliamentary positions.
He has done the wrong thing and he has fronted up and done what has been asked of him by the leader of the opposition and stepped down.
She also brings up foreign donations, recalling how George Brandis on Wednesday said he had no knowledge of a $40,000 donation the LNP received before Malcolm Turnbull dined with a Chinese donor:
He also waxes lyrically about ... I forget what he said, foreign influence ... foreign influences inside the parliament. Can I just remind the government that Labor has had a bill to ban foreign donations in this parliament since November 2016. November 2016.
Wong finishes on this point:
[From the reports it appears] that national security information, or information from national security agencies, has made its way into the public. I would trust, given the history of such matters, given the legislative framework which applies to such matters, that senator Brandis, as the attorney-general, will be as persistent and determined to find out how that has occurred as he has [been] to point the finger at senator Dastyari.
Asked about that at this morning’s press conference (and there have been several questions on this and each time a minister has declined to comment), Turnbull had this to say:
I am more concerned – I tell you what I am very concerned about is that Sam Dastyari, a senator, an Australian senator, has not simply taken money to pay off his personal debt from a foreign national who’s very much connected with Chinese government agencies and interests. As we know, [he] did a U-turn on Labor policy on a vitally important issue of national security relating to the South China Sea. That was bad enough. That was very bad. He should have gone then. But now, he goes to a meeting with this individual and he tells him to put his phone inside – and he puts his own phone inside – so that there is no risk of them being overheard by Australian security agencies. That is disloyal conduct of the highest order. Dastyari should leave the senate. If he refuses to resign, Shorten should dump him from the Labor party and let him languish in contempt on the cross bench. Dastyari has shown he does not put Australia first and he does not owe his first loyalty to Australia. Sam Dastyari has shown that he is not on Australia’s side and it’s time he got out of Australia’s parliament.
Updated
Mike Bowers was in the Senate as Dastyari made his statement.
Senator Sam Dastyari breaks down when talking about his family as he makes a brief statement this morning about his resignation from the senate labor leadership @AmyRemeikis @GuardianAus @murpharoo #politicslive https://t.co/geZ9MUWVXM #auspol pic.twitter.com/jSzXk8FCEk
— Mikearoo (@mpbowers) November 29, 2017
Updated
George Brandis has taken the Senate floor, calling on Sam Dastyari, who he says he likes personally, to resign from parliament.
In this Senate, over recent months, we have seen one senator after another forced to resign from the Senate because of section 44 of the constitution, in circumstances which have reflected no discredit on any single one of them, because for a technical reason, unbeknownst to them, they were deemed to owe allegiance or acknowledgement to a foreign sovereign.
And meanwhile, sitting in the Senate in a senior position in the Labor party, there sat Senator Dastyari, who evidently, evidently, by his conduct, was actually under a foreign influence. Actually under a foreign influence, but he kept quiet, he stayed mum, he maintained his position, until his position was exposed by the media in the last 24 hours or so and now he has been forced to resign. Again.
Updated
Labor has responded to the banking royal commission:
Today, Australians have witnessed one of Malcolm Turnbull’s greatest failures of leadership. Malcolm Turnbull has spent 601 days fighting Labor’s call for a royal commission into the banking and financial sector. Just 48 hours ago, the prime minister said: “We have made it clear that we are not going to establish a royal commission.”
It says everything about Turnbull’s values and priorities that he only agreed to Labor’s royal commission when the banks told him he had to. He ignored the pleas of families and small businesses, he rejected the words of whistle-blowers. But when the big banks wrote him a letter, he folded the same day.
Turnbull has always been – and always will be – on the side of the banks. He has let the rorts and rip-offs continue for more than 18 months so he could protect the banks and protect his job. That is unforgivable. If Mr Turnbull had have listened to Labor, we would’ve had a royal commission and it would have been done by now, with its recommendations being implemented.
We are deeply concerned that, even today, the prime minister said a royal commission was “regrettable”. Turnbull and his government voted in the parliament more than 20 times to protect the banks from a royal commission. Australians have every right to be cynical about today’s announcement.
For a successful and comprehensive royal commission into the financial services sector to now occur, it is critical that the opposition is formally consulted. Failure not to consult will raise serious concerns and doubts about the way in which the royal commission is constituted, given that Malcolm Turnbull and Scott Morrison have spent the last 18 months doing everything to avoid one.
Updated
Here is Sam Dastyari’s statement in full:
I rise to make a short statement. Let me begin at the outset by saying that I’ve never had a briefing by any Australian security agency ever. I’ve never passed on classified information and I’ve never been in the possession of any.
As I’ve repeatedly said, if I was ever given any security advice from any agency, I would follow it to the letter. I want to be absolutely clear, I could not be a prouder Australian. My family was lucky enough to leave a war-torn Iran to start a new life in this amazing land.
I find the inferences that I’m anything but a patriotic Australian deeply hurtful.
Nonetheless, I’m not without fault. In June last year, I held a press conference where I made comments that were in breach of Labor party policy. I have never denied this.
The price I paid for that was high but appropriate. More recently, my characterisation of that press conference was called into question. A recent audio recording shocked me as it did not match my recollection of events. I take responsibility for the subsequent mischaracterisation.
When a public official makes a statement that contradicts events there are consequences. For me, the consequences were being called last night by Bill Shorten and being asked to resign from my position in the Labor Senate organisational leadership.
With the indulgence of the Senate, I want to acknowledge my amazing wife and two daughters, who keep having to put up with the heightened spotlight. Hannah is now six and has to answer questions in the playground. That breaks the heart of any father.
Today, we have the news of a royal commission into Australian banking, which is a victory for the many victims and those of us who have fought for justice. With the upcoming New England and Bennelong byelections, I always put the party first and don’t want to be a distraction. I will work and continue to work for the people of New South Wales.
Updated
Malcolm Turnbull has repeated his calls for Sam Dastyari to resign and again openly questions his loyalty:
Let’s be very clear about this. We have seen senators resign from the Senate, senators who had no allegiance to any country other than Australia but by reason of a provision in a foreign law of which they weren’t aware, it turned out that they had dual citizenship. This is a senator who has made it abundantly clear that his first allegiance is not to Australia. He has been taking money to pay his personal debts. He’s acknowledged that from a foreign national who is very, very close indeed to a foreign government.
Now, now we learn – and he has not denied it – that he has been providing counter-surveillance advice to that foreign national in order, presumably, so that what he assumed were the operations of Australia’s security agencies could be frustrated. Sam Dastyari should get out of the Senate, full stop. That’s his duty. If his statement is not a statement of resignation, then he is letting everybody down and Bill Shorten has to take responsibility for this. All of this mealy-mouthed: ‘He’s on his last warning.’ That is nonsense. This is not a lapse of judgment, this is a failure of loyalty.
Updated
Amid all of this, Mathias Cormann has announced former Liberal senator Nick Minchin has a new role:
The Hon. Nick Minchin has been temporarily appointed to the Independent Parliamentary Expenses Authority following a six-month leave of absence by the Hon. Gary Gray.
As specified in the Independent Parliamentary Expenses Authority Act 2017, the authority is required to include a former member of parliament among its members.
Mr Minchin was senator for South Australia from 1993-2011 and minister of finance and special minister of state in the Howard government. He is well equipped to perform the tasks required of members of the Independent Parliamentary Expenses Authority.
I congratulate Mr Minchin on his appointment and I look forward to welcoming Mr Gray back to the authority following his leave.
Updated
Sam Dastyari makes statement to the Senate
Dastyari has taken to the Senate floor.
He says he was “shocked” to hear the recording of his comments, as it did not match his recollection of events, but admits he misrepresented his comments.
Updated
So why the change? Given that just a week ago, Malcolm Turnbull was saying it wasn’t needed?
Turnbull basically admits he was forced into it, because the government is no longer able to control the numbers in the house. Extraordinary.
Government’s policy remains the same until it’s changed. This was a decision of the cabinet that just concluded. That is the first point I want to stress to you. Obviously, there’s been a lot of changes in the political environment here. We’ve had, we[’ve] got, two byelections under way, the numbers are down in the House of Representatives, there is, you know, you all understand the political circumstances and what we, our job is to manage these issues and lead on these issues in a way that protects the national economic interest of Australia and all Australians. That is the – that is our job and that’s the judgment we’ve taken. And you can see, you can see that the banks have come to, you know, they have come to a conclusion that they believe that it is best to get on and hold an inquiry. I notice as the Sydney Morning Herald editorialised in that way only a day or so ago. I think people are recognising that the nature of the political environment has created a sense of inevitability about an inquiry. There’s been a lot of uncertainty, a lot of speculation, and that is why it’s best, while we don’t relish this decision, nonetheless, we have to act in the national interest, and that’s why we have taken the decision we have.
Updated
The inquiry will cost $75 million. Scott Morrison does not look happy.
That’s the estimate of our cost. We’ll be making that available for the commission. Again, the issue that you raise [cost, compensation, who will pay for it], I think is one of the reasons why you don’t seek to create false expectations. And this, I think, has been the cruelty of Bill Shorten’s position. He wanted to pursue a royal commission because he didn’t know what to do. We knew what to do and we got about doing it. His call for a royal commission was an excuse for not taking action. Our position on this matter has been, because we wanted to take action, and we wanted to get about it. If it’s Bill Shorten’s suggestion that he wanted to do this because he wanted taxpayers to fund some large compensation scheme, well, he should come out and say that. But the government has taken an action here where I think the terms of reference are very clear. And those kinds of questions come with a moral hazard.
Updated
Malcolm Turnbull doesn’t want to get into what role the Nationals’ revolt played in this. He also talks about the reforms the government has already taken and says those reforms were a reason not to have done this earlier. He also blames politics for why it is happening:
I agree with Scott, this is essentially a regrettable but necessary action. Politics, I mean, the banks in particular and financial services sector has become a political football. That is not in the national interest. And the approach we’ve taken has been the correct one and, of course, it’s delivering real results now. And Scott is absolutely right, if you had a royal commission, started a royal commission of this kind two years ago, everyone in the industry would have said, hold your horses, you know, wait until the commission reports. Before you do ... just let me finish ... but it is clear that the speculation and the uncertainty and the politics around this issue require the government to take control of the inquiry issue, have a properly constituted inquiry, which is a royal commission, and get this matter addressed. That’s what we’re doing.
Updated
Scott Morrison is spinning this for all his worth. He tells the press conference that this commission is “taking control as a government” and blames politics, particularly the Labor party, for creating the climate where a royal commission is needed:
All these reforms and actions would not have occurred had the government agreed to undertake this action earlier, such actions would have been unnecessarily delayed. Nor would such action prior to this time have been in the national economic interest. But the nature of political events means the national economic interest is now served by taking what I describe as a regrettable but necessary action.
Politics is doing damage to our banking and financial system, and we are taking control as a government to protect the strength of our banking system through a properly constituted inquiry on these terms of reference, rather than the alternatives present in other commission of inquiry proposals, subject to the vagaries of politics that would do harm and already has to date.
I have consulted not only with Treasury, but consulted with the governor of the Reserve Bank and the chair of APRA, who agree this is a regrettable but necessary course of action now to take control, given the uncertainty, disruption and damage being done by political events, also confirmed by the banks in their communication to me, which has already been communicated to the markets.
Importantly, the RBA and APRA also agree with the government that this action we announced today must not delay and cannot delay the many other responsible actions that are being undertaken. That includes the Laker review that is currently being undertaken in relation to [the] Commonwealth Bank, things such as the legislative proposals that are before the parliament, AFCA [Australian Financial Complaints Authority] in particular. I call on parliament to support these measures.
Updated
Just a quick recap on the banking royal commission:
- Cabinet approved it this morning
- The banks released the letter they sent the treasurer, Scott Morrison, asking for an inquiry to ‘end uncertainty’
- It will go for just 12 months
- It will not award any compensation
- It will report back in February 2019
- It will be chaired by a judicial officer
- It will include the nation’s banks, big and small, wealth managers, superannuation providers, insurance companies.
Updated
Royal commission into misconduct in the financial industry to go ahead
Malcolm Turnbull is holding a press conference: the banking royal commission is go:
The speculation about an inquiry cannot go on. It’s moving into dangerous territory where some of the proposals being put forward have the potential, seriously, to damage some of our most important institutions.
We have got to stop the banks and our financial services sector being used as a political football. It may be politically advantageous for some people to do so. But it runs the risk of putting vital economic interests at stake and runs the risk of putting them under threat.
Now the chief executives and chairmen of the big four banks have written to us, asking the government to step in, end the uncertainty and ensure an orderly process that addresses the concerns.
Cabinet has met this morning and has determined the only way we can give all Australians a greater degree of assurance is a royal commission into misconduct in the financial services industry. Only the government can ensure that a royal commission is created, established with respected and capable commissioners.
This will not be an open-ended commission, it will not put capitalism on trial, as some people in the parliament prefer, and we’ll give it a reporting date of 12 months. This should not be a commission that runs forever, costing many hundreds of millions of dollars, as would’ve been the case under some of the proposals.
The terms of reference will ensure a responsible but comprehensive investigation into how financial institutions have dealt with cases of misconduct in the past, and whether those examples expose issues in terms of the cultural and governance issues in terms of the regulation and supervision of the industry.
It will cover the nation’s banks, big and small, wealth managers, superannuation providers, insurance companies. It will be a comprehensive inquiry.
We’ll be appointing a distinguished former or serving judicial officer to lead the commission, we’ll be asking the commissioner to deliver a final report by the first of February, 2019. To be clear, I want to make this very clear, a royal commission will not be able to recommend [compensation] for individual cases, but it will be able to make recommendations the government consider in the interests of making our financial system the most competitive, transparent and accountable in the world.
We have much to be proud of about our banking system, and the experience of the global financial crisis should remind us of that. We have much to be proud of, but also much to take care of.
We need to maintain the stability of our banking and financial system; all Australians, consumers, small businesses, farmers, shareholders, must have confidence and trust in the financial system. Now this royal commission’s establishment will end the uncertainty and speculation, it will conduct an inquiry in a thorough and conventional fashion, and so doing, it will protect the integrity of our banks, thereby ensuring Australians’ trust in this critical [institution] is well [founded].
Updated
That letter was signed by the Commonwealth bank, ANZ, NAB and Westpac and basically is telling the government to get its act together and do something, because the constant calls for a royal commission are getting damaging.
It also means the banks will get the government’s inquiry, and not Labor’s, so (if it goes ahead) it will be the Coalition setting the terms of reference. Just last week, Malcolm Turnbull was ruling one out, with the government – at least the Liberals – claiming a royal commission would be too damaging.
But it turns out there are more damaging things. Like being rolled by members of your Coalition. The banks have just given Turnbull a way out.
Updated
Just because there is not enough going on today, here is the joint statement from Australia’s big banks:
Dear Treasurer,
We are writing to you as the leaders of Australia’s major banks. In light of the latest wave of speculation about a parliamentary commission of inquiry into the banking and finance sector, we believe it is now imperative for the Australian government to act decisively to deliver certainty to Australia’s financial services sector, our customers and the community.
Our banks have consistently argued the view that further inquiries into the sector, including a royal commission, are unwarranted. They are costly and unnecessary distractions at a time when the finance sector faces significant challenges and disruption from technology and growing global macroeconomic uncertainty.
However, it is now in the national interest for the political uncertainty to end. It is hurting confidence in our financial services system, including in offshore markets, and has diminished trust and respect for our sector and people. It also risks undermining the critical perception that our banks are unquestionably strong.
As you know our banks have acknowledged that we have not always got it right, and have made mistakes. Together with the government and regulators, since 2014 we have been taking action to fix issues, and improve what we do and how we do it. We have collectively appeared before, or taken part in 51 substantial reviews, investigations and inquiries since the global financial crisis, 12 of which are ongoing. We continue to demonstrate our commitment to doing the right thing by our customers and seeking to ensure those genuinely affected by these mistakes are appropriately compensated.
A strong, well-regulated and well-governed banking system is in the interests of all Australians and is critical to job creation and fairness. The strong credentials of the banking system ensured Australians were spared the worst of the global financial crisis, and have been fundamental to the ongoing performance of our economy despite global and domestic political turmoil.
We now ask you and your government to act to ensure a properly constituted inquiry into the financial services sector is established to put an end to the uncertainty and restore trust, respect and confidence.
In our view, a properly constituted inquiry must have several significant characteristics. It should be led by an eminent and respected ex-judicial officer. Its terms of reference should be thoughtfully drafted and free of political influence. Its scope should be sufficient to cover the community’s core concerns, which include banking, insurance, superannuation and non-ADI finance providers. Further, to avoid confusion and inconsistency, the inquiry must to the most practical extent replace other ongoing inquiries.
It is vital that the terms of any inquiry consider the many reviews and inquiries that have been conducted into the banking sector in recent years; the significant government and industry-led reforms that have been and will shortly be implemented; the 44 recommendations made in the Financial System Inquiry in 2014; and the broad and positive contribution that banks make to the Australian economy and to millions of customers and shareholders.
It is also important that any inquiry reports back in a timely manner so that we can have certainty about the findings and move forward to implement any recommendations.
We will work hard to ensure our contribution to any process helps to further strengthen Australia’s financial services system.
Throughout this, our focus will remain on our customers. We are proud of the work our people do every day to support them. That work continues.
Updated
Just to be clear, Sam Dastyari has not been told to resign from the Senate. Just demoted from his additional responsibilities in the Labor party and the parliament.
This is what happened when the story about his asking Huang to pay a legal bill for him last year. He was dropped from the front bench, but five months later was given the deputy whip position and, at the same time, began to rebuild his public profile, by often fronting Labor’s attacks.
Updated
Speaking to Sky News, Marise Payne said Sam Dastyari had “misled us all in relation to what he had said”.
“So the question of trust on defence and national security, to whom we respond in terms of our foreign policy and national security stance is what is at stake here. We have a very clear line in the sand from the government’s perspective in relation to, particularly the issue of the South China Sea, the prime minister, the foreign minister and I have been completely consistent. Senator Dastyari’s behaviour is completely untenable.”
Looks like Malcolm Turnbull won’t have to wrestle with that question over a banking royal commission much longer:
Breaking: The banks have caved in and asked for a royal commission
— Phillip Coorey (@PhillipCoorey) November 29, 2017
The Greens senator Lee Rhiannon said the latest Sam Dastyari revelations mean it is beyond time for political donation reform in Australia.
Political donations are having a corrupting influence on Australian political life, and they certainly add to the public’s cynicism about what influences government decisions,” Rhiannon said in a statement.
The current scandal around Senator Dastyari is also a story about the influence wealthy patrons exert on the political process and it is one that entraps both major parties.
Huang Xiangmo has donated more than $1m to the Labor Party, much of it raised by Senator Dastyari.
It is not just Labor that has benefited from Mr Xiangmo’s generosity. Mr Xiangmo heads up the property development company Yuhu Group. This company has donated to Liberal party state branches in Victoria, NSW, WA and Tasmania.
In another embarrassment for the Prime Minister it was revealed that just prior to the recent Queensland state election he dined with Liu Xiaodong, whose company, Australian Energy Windfarm, donated to the Liberal National Party.
This latest scandal further underlines the urgent need for electoral funding reform. Successive Coalition and Labor governments have failed to act.
My Greens Private Members Bill to ban political donations from developers and the alcohol, gambling and tobacco industries is currently before the Senate. It could be debated as early as today.
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For a backgrounder on how we got here with Dastyari, Katharine Murphy wrote this story up last night.
We spoke to Bill Shorten’s office this morning to confirm Sam Dastyari had been demoted.
He has just released this statement:
Last night I spoke to Senator Sam Dastyari and told him to resign from his senior Labor positions in the Senate.
It is not a decision I took lightly.
I told Senator Dastyari that his mischaracterisation of how he came to make comments contradicting Labor policy made his position untenable.
I also told him that while I accept his word that he never had, nor disclosed, any classified information, his handling of these matters showed a lack of judgment.
I know that Senator Dastyari will learn from this experience. I have asked him to inform the Senate at the first available opportunity.
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The attorney general, George Brandis, was up early this morning commenting on the Sam Dastyari matter.
Speaking to the ABC’s program AM, Brandis had this to say:
I’m not saying it’s treason. What I’m saying is that Dastyari’s position on the basis of what we know is completely untenable. We know Sam Dastyari took deliberate steps to undermine or subvert what he believed might be an intelligence investigation. We find this out 24 hours ago. Today, from last night, it was reported and today we know he called a press conference, confined it to Chinese-language media by the way, for the deliberate purpose of undermining the Labor party’s policy in relation to China, only lately announced by then shadow defence minister, Senator Stephen Conroy. Huang Xiangmo was in the room.
What is a politician, by the way, doing holding a press conference at the behest of his major donor, who is almost literally pulling the strings. And then we also know that on several occasions subsequently he lied about what he had said about the press conference. Rather that a few mumbled words, we now know these were deliberate, scripted, concerted remarks and their advertent purpose was to send a message through the Chinese media that were a Labor government to have been elected, its foreign policy in relation to China would be at variance from what had been announced by the Labor shadow minister, Senator Conroy.
Updated
Good morning
It’s parliament Friday, but there is no rest in sight.
Overnight, Bill Shorten called Sam Dastyari and told him to step down from any additional responsibilities in parliament, including as deputy whip, effectively demoting him in the wake of further revelations over his dealing with a Chinese donor.
Fairfax Media reported that Dastyari met with Huang Xiangmo, a donor with links to the Chinese communist government, and told him his phone was probably being tapped by security agencies.
Dastyari has yet to comment beyond a statement he released on Wednesday, which said in part:
I reject any assertion that I did anything other than put to Mr Huang gossip being spread by journalists.
I have never been briefed by any security agency, or received any classified information about any matter, ever. I’ve never passed on any protected security information – I’ve never been in possession of any.
And as I’ve said publicly before, I would always act in accordance with any security advice I was given.
Shorten, who was attending a funeral on Wednesday, released his own statement, reiterating his call for a ban on foreign donations and stating he had “made it clear to Senator Dastyari that this is not the first time his judgment has ben called into question, but I certainly expect it to be the last”.
Dastyari was demoted last year, after it emerged he had asked Huang to pay a legal bill for him, and comments he made, contradicting Labor’s official policy on the South China Sea dispute were made public.
Dastyari later said the comments were made off-the-cuff, calling them “naive and silly”. Overnight, audio emerged revealing the comments in detail.
The government has gone on the attack, calling for Dastyari to resign. Shorten immediately called his senator and demoted him, but this is not over yet.
Also bubbling along is LNP senator Barry O’Sullivan’s threat to push a bill calling for a banking royal commission, something Malcolm Turnbull has already ruled out.
As always, Mike Bowers is out and about and you can reach both of us in the comments, or on Twitter. We do check, I promise.
Strap in, and let’s get started.
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