Treasurer Jim Chalmers said he is open to negotiating with the Greens to get Reserve Bank of Australia (RBA) reforms passed through the Senate after the Coalition refused to back the bill over board stacking concerns.
Chalmers said he still prefers a bipartisan agreement for passing the legislation but he is now open to exploring all possibilities.
“We‘ll consider the next steps. All options are on the table, but my preference hasn’t changed. I’d prefer a bipartisan outcome in the Senate.”
In a press conference, Chalmers criticised the opposition for politicising the RBA legislation, referencing past statements by Shadow Treasurer Angus Taylor, who had supported the reforms.
He blamed Taylor of being “rolled again” by his Coalition colleagues. Chalmers highlighted that over the past year and a half, he has had multiple discussions with the opposition and the RBA governing board, accommodating all amendments suggested by Taylor.
The opposition’s demands included making the RBA governor the chair of the governance board, providing flexibility in term limits, ensuring senior RBA executives oversee operations, and retaining section 11 with adjustments.
They also sought to exclude references to equal weight in the dual mandate and to move all current RBA board members to the monetary policy board unless they opted out.
“The shadow treasurer raised six issues, and I have accommodated his view on every single one of those six issues that he raised,” Chalmers said.
Meanwhile, Liberal Senator Simon Birmingham expressed concerns, suggesting that the reforms seemed aimed at stacking the board with people close to the government.
“There was always a tinge of this reform that felt like it was far more bureaucratic and administrative in setting up separate, different boards and creating additional complexities,” he said.
Birmingham also pointed out that Labor’s recent criticism of the RBA has made their motivations “quite clear and transparent.”
Chalmers, however, emphasised that RBA Governor Michele Bullock publicly supported the reforms, quoting her November speech where she said, “I am 100 percent behind the changes.”
On Aug. 24, Taylor issued a statement saying that the Coalition is committed to continuing these negotiations in good faith, but raised concerns over what he called 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.
