I’m pleased to say that the bill that was going to remove oversight of the RBA by the Treasurer did not get passed on Thursday night.
Why Jim Chalmers wanted to remove his own powers as a representative of the people was in my view another attack on our own democracy.
Monetary policy is too important to be left to central banks unchecked.
The RBA along with the two major parties have destroyed Australia’s economy through reckless spending on Renewables, Covid and erratic interest rate adjustments.
Only People First has the policies to get our economy back on track.
Committee on 6/11/2024
Item: Economics Legislation Committee – 06/11/2024 – Estimates – TREASURY PORTFOLIO – Department of the Treasury
Senator RENNICK: Yes, that’s fine. I’ll put this to you, Minister. Why would the Treasurer want to get rid of section 11 of the RBA act that gives him the power to override the RBA? Ultimately, I would have thought all independent statutory authorities should still have some sort of democratic oversight by the Treasurer of the day. I find it hard to believe the Treasurer would have woken up one day and just said, ‘I’m suddenly going to give up my own powers to override the RBA.’ I suspect most people weren’t even aware this section existed. It’s an odd thing to want to take away your own powers.
Senator Gallagher: My recollection is it came up through the review of the RBA. It’s a power that’s never been used. As the Treasurer and government’s view is around strengthening the independence of the RBA, on balance that clause was not required.
Senator RENNICK: By strengthening the so-called independence of the RBA and noting that Michele Bullock won’t provide minutes of her meetings with the Bank for International Settlements, just as important as independence I would have thought accountability is even more important in democracy in terms of a supposedly independent central bank that talks to other central banks. Isn’t oversight of these bodies very important? We need the Treasurer as well as parliament to be able to have oversight of these bodies.
Dr Kennedy: Just to be clear, the Treasurer indicated that he was happy to revisit that issue as part of the negotiations that were going on around that legislation. He did make it clear and our review panel made it clear it was a closely run thing, and an on-balance recommendation. In terms of where the Treasurer got to, as I understand it, you are right that the initial reform was in implementing the entire set of the recommendations. However, he indicated an openness to look at that issue, not particularly for the specific issues you raised but in broad terms. The inquiry that was held, which you were probably part of, had a few former governors, for example, who said they were comfortable with that.
Senator RENNICK: I’m not as an elected representative. Anyway, I’ll leave it at that. That’s the question.
