This is why the RBA should not be independent.
In Estimates I asked the RBA Governor if the RBA would be prepared to use their payment systems to help set up a government owned bank to provide essential banking services including cash.
Her reply was “it’s a matter for government.”
If doing the hard yards such as providing essential banking services is a matter for government then why isn’t setting interest rates as well.Do we let the Australian Tax Office set tax rates. Of course not.
I won’t hold my breath on the Labor Party setting up public bank. They sold the last one at the same time they started Superannuation.
And guess who the biggest owners of our banks are now? You guessed it, the Industry Super Funds.
Economics Legislation Committee
05/06/2024
Estimates
TREASURY PORTFOLIO
Reserve Bank of Australia
Senator RENNICK: In regard to the cash issue, RRAT has just handed down a report about the closure of branches in the regions, and one of the recommendations was to use the RBA’s transfer and payment system combined with Australia Post to keep government provided bank branches open in the regions or metropolitan areas. That is another way to generate income to help pay the billion dollars for the asbestos removal. Do you think the RBA could work with the government and Australia Post to provide banking facilities along with cash?
Ms Bullock : That’s really a matter for the government. If the government wants to set up individual government banks in the regions, that’s a matter for the government. The Reserve Bank does not distribute cash itself. The Reserve Bank obviously distributes cash to the banks themselves and they distribute it around—
Senator RENNICK: Sorry to cut you off there, but as you know the banks don’t want to know about it. It’s all too expensive and they’ve walked away. They’re saying they are private industry and it’s not their problem. I know you’re independent, but ultimately you’re a government body at the end of the day. I just think that’s something that should be—
Ms Bullock : Again, it’s a matter for the government.
Senator RENNICK: Okay, cool. I’ll leave it at that.
Ms Bullock : It is a matter for the government if they want to set up banks and cross-subsidise to bring money into them.
