Kelvin Thomson (Wills, Australian Labor Party) Share this | Link to this | Hansard source

On behalf of the Joint Standing Committee on Treaties, I present the committee’s report entitled Report 104—treaties tabled on 20 August 2009.

Order that the report be made a parliamentary paper.

by leave—Report No. 104 of the Joint Standing Committee on Treaties recommends binding treaty action be taken in relation to the following treaties: (1) the proposed amendment of the articles of agreement of the International Monetary Fund to enhance voice and participation in the International Monetary Fund; (2) the proposed amendment of the articles of agreement of the International Monetary Fund to expand the investment authority of the International Monetary Fund; and (3) the proposed amendment of the articles of agreement of the International Bank for Reconstruction and Development to enhance voice and participation in the International Bank for Reconstruction and Development.

The treaties committee has taken the unusual step of making an interim recommendation that binding treaty action be taken while the committee undertakes a more detailed examination of the three treaty amendments involved. The Treasurer wrote to the treaties committee on 27 August asking that the committee give urgent consideration to the treaty actions.

The treaties in question have the common aim of improving the effectiveness and legitimacy of the membership based international financial institutions—the International Bank for Reconstruction and Development, also known as the World Bank, and the International Monetary Fund or IMF. Australia was co-chair of the G20 working group on IMF reform and was instrumental in developing the reforms embodied in these treaties. The reforms will be an important agenda item at the next G20 leaders summit, to be held from 22 to 24 September. The Treasurer advised that, in order for Australia to perform the leading role expected of it in relation to this matter, Australia would need to take binding treaty action before 10 September.

While the committee have already taken evidence from the Treasury in relation to the proposed treaty actions and is convinced that taking binding treaty action in relation to these matters is in Australia’s best interests, we recognise that this action will truncate the opportunity for interested persons to make submissions about the proposed treaties. The committee will therefore consider any other issues in the framing of their final report, which they intend to table at a later date. I commend the report to the House.