Labor Party Leader Calls For Banker Bonuses to be Returned

Bill Shorten appearing at an impromptu press conference.

Amid an inquiry into alleged financial malpractice by Australia’s Royal Banking Commission, opposition leader Bill Shorten called on bank executives to return their bonuses after reports surfaced of bank employees harming customers. Shorten, the leader of the left-leaning Labor Party, made this criticism in an off-the-cuff remark during a meeting with victims of banking malpractice. Shorten said, “People shouldn’t be getting bonuses in order to rip people off ... the rewards in the system are all wrong.” He reiterated that banks need to improve their behavior across the board, noting that “it's not enough for banks to come to Parliament and say sorry. They've got to show that they mean their apology.”

Labor’s financial services spokesperson and shadow minister Clare O’Neill clarified that these remarks did not indicate a shift in Labor’s policy but that it is “an opportunity for us to see some good faith on behalf of the banks.” Shorten’s Labor party has held 15 different roundtables across the country and meetings with banking victims while the Royal Banking Commission has been examining claims of malpractice.

Labor is currently seeking an extension to the Royal Banking Commission’s investigation in order to allow more of the 10,000 victims who responded to the inquiry to testify. Only 27 individuals have been able to testify so far. Labor is critical of the ruling Liberal-National Coalition government’s short deadline, which they believe is designed to shield the banking industry from scrutiny. Prime Minister Scott Morrison has stated that the Commission will continue if the commissioner requests an extension.

Morrison criticized Shorten’s attacks as politically motivated, claiming that Shorten is criticizing problems he oversaw when he was financial services minister. “Did [Shorten] call a royal commission? No. Did he introduce tougher rules to deal with banking executives? No."

Morrison also chastised Shorten for politicizing the commission, claiming that he wants to drag it out for political purposes. Commissioner Kenneth Hayne stated, “The commission is now shifting its attention from past experiences to proposals on what should be done in response to the issues raised.”