There is an excellent oped in the AFR today about the Liberal-National Government’s decision to embed ASIC officials into banks with the potential to embed them later into other businesses. This on top of the recently implemented Liberal-National Government’s BEAR regime which allows APRA to meddle in and veto some bank management decision. Another scheme with the potential to be extended beyond banks. Oh and of course there is the Liberal-National Government’s bank tax, which also has the potential to be extended to other industries.
Here is a snippet:
These steps also make a mess of the normal principles of governance. APRA and ASIC are in the process of becoming deeply embedded in the running of private businesses. They can stop firms hiring certain people, they can dictate how they are paid, they can stop certain products from being developed, and they can sit in on private meetings, not just board meetings, but a range of others as well. Who is responsible then for the performance of the company?
The thing about precedents is that those that come after are always tempted to test them.
One thing is for certain, the next time time a Liberal Prime Minister accuses a Labor opposition about misleading voters (eg Mediscare), perhaps the same Prime Minister might explain the Liberal party misleading voters by calling his party “Liberal”.