Matt Thistlethwaite says there is a ‘foul stench’ about hearings, which he claims were timed to minimise scrutiny

This article is more than 4 years old

This article is more than 4 years old

Labor has accused the Coalition of setting the dates of the bank chief parliamentary hearings to suit the banks before the parliamentary committee had even been formed.



The House economics committee deputy chair and Labor MP Matt Thistlethwaite has also suggested the Coalition government chose hearing times outside of parliamentary sittings and within school holidays to avoid attention for the inquiry.

“This is highly unethical behaviour,” Thistlethwaite said. “There is a foul stench about this inquiry before it has even begun. The banks are getting special treatment from this government about this inquiry and that is going to leave a foul taste in the mouths of Australians who are fed up with the actions and the practices of many banks throughout the country.”

The House economics committee was only formed on Thursday this week but Labor members said they heard from bank representatives of the hearing dates before the committee had met on Thursday afternoon. It will be the first time the heads of the big four banks address the House committee.

Turnbull attacks George Christensen and Pauline Hanson's anti-Muslim rhetoric Read more

Last month, amid anger that the banks failed to pass on the full interest rate reductions, Malcolm Turnbull announced the bank chiefs would be forced to explain their actions to the parliamentary economics committee annually.



The move followed calls by Labor and the Greens for a bank royal commission. The government has also asked the small business ombudsman, Kate Carnell, to review small business cases in regard to bank malfeasance.

A spokesman for committee chair and Liberal MP David Coleman confirmed that the secretariat had contacted the banks before the committee forming and that it was standard practice.



“The committee secretariat of the parliament has been working on arranging potential dates for a number of hearings in recent weeks, including with the banks, the Reserve Bank, Asic [the Australian Securities and Investment Commission], ACCC [the Australian Competition and Consumer Commission] and Apra [the Australian Prudential and Regulation Authority],” the spokesman said.

“This is standard practice. In seeking to arrange prospective dates for meetings the secretariat discusses potential times for hearings with the relevant parties. No hearing dates are final until approved by the committee.”

The subsequent committee meeting on Thursday approved a hearing for the Reserve Bank on September 22, and with the four major banks appearing between 4-6 October.



But Thistlethwaite accused the government of offering special treatment to the banks.

“It became apparent yesterday that the Turnbull government has offered special treatment to the banks in the setting of the dates for the first inquiry that will take place in three weeks time,” Thistlethwaite said.



“We all know it should be the committee that establishes these dates, not the banks dictating to the government.”

A long-time campaigner on bank behaviour, the Nationals senator John Williams, has also succeeded in establishing an inquiry into the life insurance industry and its regulations after allegations that companies denied claims from sick and dying patients.

The parliamentary joint committee on corporations and financial services will consider whether the industry needs further reform and better oversight by regulatory bodies like the Asic and Apra.