Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Hansard source

When the previous Treasurer, the member for Lilley, took $5½ billion as a special dividend out of the Reserve Bank Reserve Fund, the Reserve Bank Reserve Fund, which is a contingency fund set off against the riskiest assets of the Reserve Bank, fell to 3.8 per cent. In the interim, the member for Lilley, concerned about going to 3.8 per cent, gave a pledge to the Reserve Bank that he would take no more dividends; he would allow them to replenish the Reserve Bank Reserve Fund. Then, in his desperation to deliver a surplus, which of course Labor never delivered—and, I tell you what, he talks about telling porkies: he made 300 promises to deliver a surplus and not one of them was delivered—he took half a billion dollars out of the Reserve Bank.

I flagged in February this year that I was concerned about the Reserve Bank Reserve Fund. I raised it publicly. One of the first things I did was contact the Governor of the Reserve Bank and the Secretary to the Treasury and say to them, 'Do you have all the resources you need to deal with any challenges that might emerge over the next few years?' They came back and said they wanted 15 per cent in the Reserve Bank Reserve Fund, $8.8 billion. Contrary to what the L-plate treasurer over there does not understand, the $8.8 billion is a grant within government. If he has not worked out that it comes back with dividends then he should not be there.

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