Helen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | Hansard source

I move opposition amendment (1) on sheet 5497:

(1)    Schedule 1, page 3 (after line 8), after item 2, insert:

2A  After section 24B

Insert:

24C Governor and House of Representatives

The Governor must make himself or herself available to give evidence before the House of Representatives Standing Committee on Economics, or any successor committee designated for the purpose of this section by the Speaker of the House of Representatives, at times and places to be agreed with the Committee but in any case not less than four times per year if requested by the Committee.

I spoke at length in my second reading remarks about the opposition’s proposed amendments, but I will briefly recap. The amendments would insert a new section 24C to the Reserve Bank Act 1959 which would require the governor to appear before the House of Representatives Standing Committee on Economics at least four times a year. Presently, the governor generally appears before that committee twice a year, but this is optional and we think it is appropriate that it be formalised. We consider that it would increase the accountability and transparency of the Reserve Bank if the hearings were conducted four times a year in line with best practice, as we understand it, overseas. We consider that this amendment would certainly enhance the independence and accountability of the Reserve Bank.

I understand that Senator Fielding wishes to move an amendment to this amendment that would require the governor to also appear before a Senate committee. We did consider this very carefully and we came to the view that it would be just too confusing and difficult to manage if the governor were to appear in both houses. The convention has been that he has appeared before the economics committee in the House. We think that that should be formalised in the way we have proposed.