Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to his statement in question time on 13 November that, if the correspondence between the member for Lilley and the Governor of the Reserve Bank was released, then he in turn would release the letter from the Governor of the RBA to the Treasurer about the $8.8 billion grant. Given that all correspondence between the member for Lilley, as well as me, with the Governor of the RBA has been released publicly, will the Treasurer stick to his word and release the letter from the Governor of the RBA in relation to the $8.8 billion grant?

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

Is that right, Member for Lilley—all the correspondence between the member for Lilley and the Reserve Bank has now been released? Is that right? Just nod your head. Has he released all the correspondence where the member for Lilley certified to the Reserve Bank that he would not take a dividend out of the Reserve Bank? Then he went and took a dividend of $500 million out of the Reserve Bank. Has he released that correspondence? Has he released all that correspondence—because, I tell you what, you have been caught out on this—

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Speaker, I rise on a point of order.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The members will both resume their seats.

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

Stop telling lies.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Lilley will withdraw. That is unparliamentary language.

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

I withdraw.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Speaker, I rise on a point of order. The Treasurer interjected the exact same word that was just withdrawn.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

If you did, Treasurer, withdraw.

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

I withdraw.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The point is that the member in his question made a proposition that all correspondence had been revealed. The Treasurer, in answering, was doubting that proposition and was seeking to get clarification from the former Treasurer, which is not within the standing orders. Accordingly, I would ask the Treasurer simply to finish his answer and we will then move on.

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

I am happy to finish it, because I was asked about the Reserve Bank. I would say to the member for Lilley, as I say to all members over there: there are two things that they need to know about this issue—

Jenny Macklin (Jagajaga, Australian Labor Party, Shadow Minister for Families and Payments) Share this | Link to this | Hansard source

The answer is no.

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

What was that?

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Jagajaga will desist, or she will be warned.

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

There are two issues that need to be addressed. No. 1: the Reserve Bank Reserve Fund never went below 10 per cent when we were in government. That is my best recollection of it: we never went below. And we had consistent dividends taken out of the Reserve Bank during that time. Then, again from memory, in 2008-09, the then Treasurer took $5½ billion out of the Reserve Bank—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Speaker, I rise on a point of order under 104(a). the question did not go at all to the reasons for the money going there. It went to a specific guarantee given from that despatch box about the release of a letter.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

I am afraid, when the question related to correspondence which touched on all those issues, it is in order.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to 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.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Madam Speaker, given that the Treasurer asked whether all letters had been released, I seek leave to table them.

Leave granted.