November 30, 2017
Member for Wide Bay Llew O’Brien confirmed on Thursday he is prepared to support a judicial inquiry into the banking, insurance, superannuation and financial service industry.
National Party colleague Senator Barry O’Sullivan is preparing a Bill to establish such an inquiry.
Mr O’Brien said he had been considering the matter for many months, and after examining Senator O’Sullivan’s Bill and expanding the proposed inquiry’s terms of reference to include consideration of mental health conditions on insurance policies, he supports the revised Bill.
“My support is for Senator O’Sullivan’s Bill in its current form,” Mr O’Brien said.
“If there are any changes or amendments to that Bill, I would need to reconsider my position.”
Mr O’Brien said his interest in an inquiry had been prompted by a 2014 ASIC report which looked into retail life insurance policies.
That report found 37 per cent of advice offered to customers was inappropriate and did not meet their needs.
“We are hearing about perfectly healthy people who are denied life insurance because of a single instance of post-natal depression, or having been diagnosed once with anxiety as a 14-year-old.
“This is pure and simple discrimination, and there are legitimate concerns that people will be less willing to seek help for mental health conditions as a result.”
Mr O’Brien said there was also clear evidence that many Australians are frustrated by their experience with the industry, and have been left hurt by practices which have eroded public trust in the system.
“This is about standing up for Australians who have been harmed by the way some aspects of the industry have operated,” he said.
“The problems are many and varied and keep on recurring, and while the government has made some efforts to bring in greater accountability, I believe the best way to focus the industry’s attention on the consumer is through an inquiry.
“These cases demand action and a Commission of Inquiry will help to ensure the public’s trust and confidence in the banks is justified, and that financial institutions will meet community expectations into the future.
“If the institutions are acting ethically and according to best practice the cost of an inquiry should be minimal.
“But if there are systemic problems they need to be remedied and this will achieve savings for consumers and taxpayers into the future.”
Mr O’Brien said while the need for an inquiry had been identified by the House of Representatives and Senate, it was time for the matter to be escalated above the political level to focus on independent expert advice.
“The House of Representatives inquiry was chaired by a politician, the Senate inquiry was chaired by a politician, and now the Banking Commission has appointed a former Labor premier as their chief lobbyist,” Mr O’Brien said.
“The issue has become highly politicised – we need to take politics out of the issue and put it in the independent hands of the experts.”
