Bill Shorten demands compensation for victims of bank misconduct
Opposition Leader Bill Shorten has written to Prime Minister Malcolm Turnbull demanding he consider a compensation scheme for the victims of banking misconduct.
The Labor leader also demanded an apology from the prime minister for failing to agree to a royal commission sooner and to extend the one now if needed.
The Turnbull government is under pressure to admit it got it wrong after delaying the probe into the banking sector, with Financial Services Minister Kelly O'Dwyer refusing eight times on Sunday to acknowledge the government should have acted sooner.
In the letter to Mr Turnbull, Mr Shorten says the first 14 days of the commission has heard shocking evidence of systemic wrongdoing and a culture of cover-up in the industry.
“Along with many Australians, I can't help but wonder how many customers were ripped off by this kind of misconduct in the two years it took the government to relent and agree to Labor's calls for a royal commission,” he wrote.
“How many Australians continued to be hit with 'fees for no service' in the two years the government continued to protect the banking industry from a royal commission?”
Given the shameful evidence uncovered in the commission, Mr Shorten says the government needs to consider a compensation scheme for the victims of proven wrongdoing.
“Further, the victims of this shocking misconduct deserve an apology from your government that this royal commission was not established sooner,” Mr Shorten says to Mr Turnbull, in a letter also sent to acting prime minister Michael McCormack.
Treasurer Scott Morrison announced last Friday tough new penalties for shonky bankers and corporate criminals, with individuals found guilty of misconduct in the finance sector to face up to 10 years behind bars.
Corporations could be fined up to 10 per cent of their turnover.