The opposition cautions that the reform could lead to a ‘sack and stack’ approach.
Treasurer Jim Chalmers has expressed willingness to engage in negotiations with the Greens to secure the passage of Reserve Bank of Australia (RBA) reforms through the Senate, following the Coalition’s refusal to support the bill due to concerns about board stacking.
Chalmers still prefers a bipartisan agreement for the legislation but is now open to exploring all options.
“We will consider the next steps. All possibilities are on the table, but my preference remains unchanged. I would prefer a bipartisan outcome in the Senate.”
During a press conference, Chalmers criticized the opposition for politicizing the RBA legislation, citing past statements by Shadow Treasurer Angus Taylor, who had previously backed the reforms.
He accused Taylor of being “rolled again” by his Coalition colleagues. Chalmers highlighted that he has had multiple discussions with the opposition and the RBA governing board over the past year and a half, accommodating all amendments proposed by Taylor.
The opposition’s demands included appointing the RBA governor as the chair of the governance board, allowing flexibility in term limits, ensuring senior RBA executives oversee operations, and retaining section 11 with modifications.
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They also proposed excluding references to equal weight in the dual mandate and transferring all current RBA board members to the monetary policy board unless they choose to opt out.
“The shadow treasurer raised six issues, and I have accommodated his perspective on each of those six issues,” Chalmers stated.
Meanwhile, Liberal Senator Simon Birmingham voiced concerns, suggesting that the reforms appeared to be geared towards filling the board with individuals aligned with the government.
“There was always a sense that this reform had a more bureaucratic and administrative feel, establishing separate boards and introducing additional complexities,” he remarked.
Birmingham also noted that Labor’s recent critiques of the RBA have made their intentions “quite evident and transparent.”
However, Chalmers emphasized that RBA Governor Michele Bullock publicly endorsed the reforms, citing her remarks from a speech in November where she expressed full support for the changes.
On August 24, Taylor released a statement affirming the Coalition’s commitment to continuing negotiations in good faith but expressing apprehensions about what he described as a “sack and stack strategy.”
Chalmers remains focused on establishing a new Governance Board and a new Monetary Policy Board.
“The recommendations of the review will clarify the Reserve Bank’s monetary policy role, strengthen its governance arrangements, improve the transparency of its decision-making, and deepen its economic expertise,” he added.
