Adam Bandt (Melbourne, Australian Greens) Share this | Link to this | Hansard source

My question is to the Treasurer regarding the Reserve Bank bribery scandal. The former Treasurer Peter Costello has said today that any government agency that becomes aware of evidence of criminal activity has a duty to inform the relevant minister and to take the evidence to the law enforcement authorities. Does the Treasurer agree with this statement? Given the latest evidence that the Reserve Bank knew about allegations of criminal activity for two years before going to the police, will the government now put in place a full inquiry—an inquiry that will not cut across the criminal prosecutions currently on foot but will deal with the growing cloud over governance within the RBA?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Melbourne for his question, because I do acknowledge there is strong community interest in ensuring that all of our public institutions meet the highest standards. The government does take these matters very seriously, but so too does the Reserve Bank. The RBA has responded to the matters that have been raised on 7.30 on Tuesday night and they have rejected the central implications of that report on 7.30. This is what the RBA has had to say:

On any reasonable reading, the NPA Board at that time sought the appropriate information, sought appropriate advice, responded appropriately to the information it received, and reasonably relied on the advice it received.

The RBA also stands by its previous statements to the House Economics Committee in respect of both NPA and Securency.

I am confident that Governor Stevens has handled these matters with complete integrity. The RBA has taken steps over the past few years to tighten controls and to strengthen governance. As the member would be aware, many of these matters are still before the courts. The RBA is fully cooperating with the Commonwealth Director of Public Prosecutions as part of these proceedings. Given that that court consideration is still ongoing, it is obviously inappropriate for me or the government to comment any further.