Liberal MP Kelly O'Dwyer has refused to accept the federal government should have agreed earlier to a probe into the banks, despite saying she's appalled by revelations at the royal commission.
Deflecting the question eight times, the financial services minister instead talked up the coalition's efforts to boost the standards for financial advisors and increase the penalties for misconduct.
"We have done it, we have established (the commission), not only with very broad terms of reference rather than the narrow focus that some might have actually had instead, but we have also put in place a very good royal commissioner," she told ABC TV on Sunday.
For 18 months the federal government opposed Bill Shorten's proposal to investigate the banks.
Ms O'Dwyer described the idea of a royal commission as a talkfest five months ago, claiming it would "kick the can down the road" for a number of years.
Now, she admits to be being appalled by a number of the issues that have been aired.
"The government has been very alive to the problems in the financial services industry and we have been acting from the get-go," she said.
Labor hit back, saying anyone watching Ms O'Dwyer's performance would conclude the government is from another planet.
"They've learnt absolutely nothing from all of the scandalous revelations that we've heard over the last little while at the royal commission," the party's finance spokesman Jim Chalmers told ABC TV.
"They still can't bring themselves to say that they were wrong to run a protection racket against that royal commission for so long."
Crossbench senator Derryn Hinch tweeted his reaction to the minister's refusal to accept the government should have acted sooner.
"The words "we were wrong" obviously not in O'Dwyer lexicon. (Barry) Cassidy 100, Minister nil," he said.
Government frontbencher Ken Wyatt said the minister had made decisions based on the information and evidence she had on hand at the time.
"But the government has certainly stepped forward and taken the decision to have the royal commission," he told Sky News.
"That has certainly thrown up a number of issues for which I have seen the Treasurer Scott Morrison make some very strong comments about the behaviour of individuals within the financial sector."
Former deputy prime minister Barnaby Joyce admitted he was wrong in standing against a royal commission, just days before the head of AMP quit.
The commission had heard the the wealth manager had lied to regulators and charged customers fees without providing the specified service.
Mr Morrison on Friday announced 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.
Australian Associated Press
