Illawarra Labor representatives have welcomed the change of heart by the big four banks on the need for a Royal Commission.

This has only come about because of the concerted pressure from Labor, the community and rebel National MPs. The Prime Minister, who has explored every other alternative, will finally now do the right thing.

Labors Sharon Bird, Fiona Phillips and Stephen Jones called on the Member for Gilmore, Ann Sudmalis, to get behind the Royal Commission and ensure that it has broad terms of reference covering all of the concerns that have been raised by consumers and small business.

Only yesterday, Ms Sudmalis argued that the Royal Commission was not necessary. Its now time for her to admit she was wrong and get behind the inquiry.