Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

Thanks for waking me up after the shadow Treasurer spoke. I rise to support the Treasury Laws Amendment (Reserve Bank Reforms) Bill as brought to the House by the Treasurer, my good friend, my neighbour, the honourable member for Rankin. The bill seeks to implement reforms to strengthen the Reserve Bank of Australia and make it more independent, efficient and ready for the rest of the 21st century. The first question we need to ask the chamber, the mighty backbench team opposite me, is: Why would the LNP fight the Reserve Bank by voting against this positive change? Why would the LNP fight against the Reserve Bank when the governor said she supports this legislation? Why would they vote against this positive change? Why are they fighting the Reserve Bank? That's the question that we'll come back to throughout this debate.

With respect, we had a shadow Treasurer who spent 24 minutes successfully avoiding the legislation in front of the chamber. It was quite a droit move, I guess, because the Treasurer has worked hard with the shadow Treasurer over the past 18 months to reflect the shadow Treasurer's views and gain bipartisan support. We don't want to go off dancing with the crossbench in the House of Reps or in the Senate. This is a serious piece of economic legislation that should be debated by the parties of government. Instead, those opposite seem to be running for the hills, and betraying Menzies. He must be spinning in his grave at what has become of the mighty Liberal Party, or the LNP version in Queensland. We needed this to have bipartisan support, which is why the Treasurer, the member for Rankin, worked with the shadow Treasurer.

The Labor government believes that the reforms to the RBA, one of Australia's most important economic institutions, should enjoy opposition endorsement. In fact, on a number of points, Labor accepted the opposition's preferred approach because it wants to drive this important legislation forward. As I said, the shadow Treasurer had six requests that he put to the Treasurer. And how many of those six requests were accommodated? All six. Sadly, the member for Hume was then rolled in yet another example of the constant negativity we get from the coalition. I saw negativity trotted out every single day under Tony Abbott when he was the opposition leader. I saw that in the 43rd Parliament, where he perfected the art of saying no. The Leader of the Opposition has obviously copied from the Tony Abbott playbook and has just said no to everything. He doesn't believe in national unity. He has no vision for our nation. All he can do is say no. His default response to any reform is to say no. It's his go-to happy position.

Over history, many countries have been led by the strongman leader. If you look through your history books, you can see them. They're peppered throughout the history books. And the member for Dickson, having studied under Tony Abbott, has said, 'Give me some of that tactic.' Deputy Speaker, have you ever been to Aldi? I don't know about the Aldis in Victoria, but in Queensland, the middle aisle has a treasure trove of amazing things. The member for Dickson, the opposition leader, has become the strongman bought in the treasure trove at Aldi. That's where he's picked up his strongman persona. It does not quite work. He's a poor man's emulation of Tony Abbott. Contrast this approach, the 'Dr No' approach, with the Albanese Labor government. This bill was not discussed by the shadow Treasurer at all. He touched on it once in 25 minutes. This bill implements the government's response to an independent review of the Reserve Bank of Australia.

I heard the backbenchers opposite talking about independence. This is a review that was not mentioned by the shadow Treasurer. We're backing this reform to reintroduce the independence of the RBA and to mandate the RBA's overarching objective, as supported by Governor Bullock. I've heard a lot of questions of late about people supposedly attacking the RBA. Those speaking need to indicate why they are attacking a piece of legislation that the Reserve Bank governor supports.

The measures included in this bill and the other associated changes represent the biggest reforms for the Reserve Bank in over three decades. These measures will ensure that our monetary policy framework is sound and that the RBA can make the right calls that are in the best interests of the Australian people and the Australian economy. I say again: to vote against them, as the LNP intends to do, is to fight the Reserve Bank governor's recommendation.

Australia as a nation has enjoyed historically good economic outcomes. Despite what the shadow Treasurer has said, most of those economic reforms were set up under Bob Hawke and Paul Keating. They were the economic visionaries who set Australia up for years and years of growth, as acknowledged by John Howard, the longest-serving Liberal Prime Minister. Our ability to stay stable and strong through crises such as the global financial crisis has made Australia a gold-star economy and meant that we're a strong market for foreign investment. One of the key reasons we're able to absorb supply-and-demand shocks to our economy is the ability of the RBA to adapt and react to changing economic times. The RBA is a strong arm's-length institution in Australia. Maintaining and strengthening its independence is imperative in futureproofing our economy. Giving the RBA a strong set of aims and the tools necessary to achieve them will ensure that the Australian economy continues to be stable long into the future.

One of the recommendations from the Reserve Bank review was to ensure the trajectory of the RBA was a long-term objective. This bill seeks to implement this recommendation with the mandate that the overarching objective of the RBA is to—and I quote for those opposite—'promote the economic prosperity and welfare of the people of Australia both now and into the future.' How could the LNP vote against this? Why would they want to fight the Reserve Bank? It is a big question that goes to the character of those opposite, I would suggest.

As our financial systems evolve and become more complex, our targets must also involve. This bill confirms that monetary policies should have the dual objectives of price stability and contributing to full employment. You'd have to be an idiot to vote against such a proposition. Without setting out strong targets for the RBA, we cannot have a stable monetary policy, and this outlines the RBA as a robust arm's-length institution while still giving it a strong set of aims. We all agree that the RBA is a vital institution and it's imperative that we continue to ensure its ability to operate in the modern financial system. Part of this approach will be to replace the existing Reserve Bank Board with a new monetary policy board and a governance board.

The Monetary Policy Board will be responsible for the monetary and financial system stability policies of the RBA, chaired by the governor. The Governance Board will determine the policy of the RBA that is not within the remit of the Monetary Policy Board or the Payments System Board and will be the accountable authority of the bank. The Payments System Board will continue to set the RBA's payment system policy and will be chaired by the governor. This approach will aid in delivering stronger monetary policy decision-making and will give the RBA the flexibility to make nuanced monetary policy decisions. So I ask again: why would the LNP fight the Reserve Bank by voting against this positive change?

This bill will also clearly delineate the responsibilities of each board and establish a mechanism to facilitate consultation in the event of any overlap. The governor of the Reserve Bank will be a member of all three boards and will be responsible for resolving any disagreements between the boards. The governor will be the first chair of the Governance Board; this enables continuity during a period of change. External chairs may be appointed after the initial transition period. The governance model will ensure that the Monetary Policy Board and the Payments System Board can achieve their legislative functions independently. All three boards will be subject to the Public Governance, Performance and Accountability Act 2013 except where there are inconsistencies with their statutory functions. So I ask yet again: why would the LNP fight the Reserve Bank by voting against this positive change?

Existing members of the Reserve Bank Board will transition to the Monetary Policy Board automatically. The exception is if they advise the Treasurer that their preference is to be on the Governance Board. The Labor government is happy to respect the wishes of the current board members, especially as the Monetary Policy Board has a different set of responsibilities and expectations. These include time commitment, public engagements and the publication of unattributed votes. This proposed amendment has been included to meet the expectation of the opposition specifically, as discussed and agreed on with the shadow Treasurer, and with the expectation that all current board members automatically move to the monetary policy board. So I ask again: why would the LNP fight the Reserve Bank by voting against this positive change?

The modern Australian economy requires modern monetary policy, ensuring that the dual mandate of the RBA is imperative for the future stability of the RBA. Full employment has always been a goal of monetary policy since the inception of the RBA. Price stability and managing inflation are goals that are consistent with how the RBA has interpreted its mandate for many, many years. Formalising these processes gives the RBA a stronger mandate to fulfil these responsibilities. In a modern, globalised economy, it's imperative that price stability remains a consistent goal to give us a good grounding in all international trade agreements.

The Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023 reinforces the RBA's independence through limiting the power of the Treasurer to override the RBA's monetary policy decisions. The Treasurer will only be able to exercise this power in extreme circumstances, or when doing so is in the public interest. Asserting the autonomy of the RBA sends a strong signal both to Australians and the international market. This message is that we are committed to long-term stable economic management. So I ask again: why would the LNP fight the Reserve Bank by voting against this positive change?

Ensuring the RBA's independence allows it to get on with managing monetary policy and allows us to get on with the business of governing. The Albanese government has made strong economic management a priority since we were elected. Allowing the RBA to manage monetary policy while we focus on fiscal policy has ensured that we create sensible long-term economic reform.

This bill will also remove the power of the RBA to determine the lending policies of banks. This is a straightforward procedural change. The institution of APRA is now responsible for directing the lending activity of private banks, therefore it does not make sense for the RBA to have this remit. The RBA has not exercised its power to determine lending policy since APRA was established way back in 1998—last century.

One of the first acts of the Treasurer when we entered government was to conduct a review of the RBA. This is because we are dedicated to fact based, rational economic management. Reviewing our institutions is imperative in ensuring that we continue to meet the needs of a continually evolving economy. This bill is the combination of this review and implements the government's response to the many recommendations. The review, called An RBA fit for the future, indicates that to continue evolving our institutions need to keep up with the modern world. Just like the RBA we are dedicated to being fit for the future and the Albanese government has a clear commitment to a better future for all Australians. And so I ask again: why would the LNP fight the Reserve Bank by voting against this positive change?

Robust institutions, paired with robust governments, create a strong and stable nation. This bill implements key reforms to the Reserve Bank in order to make sure that our main economic institution is capable of combating the economic challenges of the modern world. The Labor government has consulted extensively not only with the shadow Treasurer and other members of the opposition but with current and former RBA staff and academics to develop a fact based bipartisan approach to our monetary policy. As I've mentioned, when making changes to the Reserve Bank, it is vital that we have a strong consensus on the way forward. So I ask those opposite again: why would the LNP fight the Reserve Bank by voting against this positive change?

Everyone in Parliament House understands the importance of stability when it comes to our national economy. That is why we've taken steps to make sure that these reforms come from a full review and with widespread consultation. So I ask yet again: why would the LNP fight the Reserve Bank by voting against this positive change?

The Albanese government is strongly committed to sensible and responsible economic reform and management. We do so as a party of government, not as a party of protest. This bill is the embodiment of this commitment and demonstrates how mature governments create long-term policy outcomes that benefit all Australians. So I ask those opposite yet again: why would the LNP fight the Reserve Bank by voting against this positive change?

In closing, I go back to this bill. It's quite a simple bill. It's a bill that has been consulted on with the opposition because they are a party of government. We did not want to go and consult the crossbench and see where some of their more extreme views would go. We wanted to consult with the party of government. The shadow Treasurer was on board and then was rolled by the guy that came from the Aldi treasure aisle.

In closing, we know that this legislation will create a stronger government, a strong economy, and a stronger Australia. I commend this bill to the House and ask the LNP to go back to the Aldi treasurer aisle and buy themselves a new leader.

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