Chalmers has now agreed to that position, saying he will shift all members over to the committee unless they write to him asking to go on to the governance board.
But it potentially leaves the governance board with just three members, including governor Michele Bullock, her deputy Andrew Hauser, and Treasury secretary Steven Kennedy. Chalmers as treasurer would have to appoint six more new governance board members.
Taylor would not say if the Coalition would accept Chalmers’ new offer, but said the changes recognised the government’s original position was untenable.
“Our Reserve Bank hasn’t always got it right. But continuity, stability and independence of interest rate setting is critical during these inflationary and uncertain economic times,” he said.
“Despite long delays, it is promising to see movement, but we will take the time to ensure issues are resolved with due diligence.”
Taylor said the reforms would allow people to serve on both the governance board and monetary policy committee. However, that would be at odds with the RBA review, which argued they required people with different skills.
Shadow treasurer Angus Taylor has signalled a possible resolution to the standoff on reform of the Reserve Bank.Credit: Rhett Wyman
Bullock noted last week that she wanted some continuation between the monetary policy committee and governance board, saying it would be helpful if “there was at least one or two of the current board members who are familiar with the bank … to move across to the governance board rather than having a whole new governance board”.
Chalmers said he was prepared to make concessions so both sides of politics could improve the RBA’s operation.
“This is about strengthening and modernising the Reserve Bank in the most bipartisan way. Wherever the opposition has come to me with a proposal in good faith, I have tried to accommodate that,” he said.
“I think it is time to end this dragging for too long so we can get cracking from the start of next year.”
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But the Greens, who have argued for the treasurer to overrule the bank on its interest rate settings, said the government’s approach would just force higher rates on the nation’s home buyers.
“Another day, another deal between Labor and the Liberals. It’s no wonder people are telling us it’s getting harder and harder to tell Labor and the Liberals apart,” Greens leader Adam Bandt said.
Source Agencies
