The Coalition began implementing some of the Hayne banking royal commission’s recommendations prior to the federal election. However, the government has warned that the bulk of the recommendations are unlikely to be implemented before the end of 2019. Treasury has barely begun the consultation process and drafting of legislative reforms. Shadow treasurer Jim Chalmers says the government’s lack of action on Kenneth Hayne’s recommendations will reinforce the view that the Coalition tends to “go soft” on misconduct in the banking sector. From The AFR:
Of the 76 recommendations made by Commissioner Hayne, 40 required legislation. Before the May 28 election, the government rejected calls by Labor to start legislating some of the more straightforward changes, saying it would be reckless to rush the process and that it should be left until after polling day.
While there is now a process under way inside Treasury and the Treasurer’s office involving consultation on some changes and the drafting of laws for others, there is no legislation ready to be introduced, and nothing has been pencilled in yet to the year’s sitting calendar.
“That doesn’t mean we won’t be addressing it,” said a government spokesman, but at this stage there was no timeline.
The longer the Coalition waits, the more the Hayne royal commission will disappear from view. And if the Coalition waits long enough, it will likely be engulfed in a new crisis that will take priority, pushing the Hayne recommendations into the never-never.
We’ve been here before with property anti-money laundering rules delayed for more than a decade with no legislation in sight.