Union push for RBA board not ‘controversial’: Treasurer

The Australian Labor Party agreed to consider appointing Reserve Bank of Australia (RBA) board members with a wider range of perspectives and expertise following CFMEU construction division secretary Zach Smith successfully pushing the motion during Labor’s national conference on 19 August.

Opposition Leader Peter Dutton lambasted the push for union representatives to be appointed to the board, suggesting that it would compromise the board’s independence, however, Treasurer Jim Chalmers defended the motion.

“I don’t think it’s especially controversial for the labour movement or for anyone to say that when we make appointments, we should consider a range of perspectives and the Reserve Bank review made a pretty similar recommendation when I released that report,” the Treasurer stated.

Mr Chalmers further stated the RBA review recognised the “value of board members who are not professional economists” and that a group of varied backgrounds “brings a wider range of perspectives and expertise to decisions”.

“Indeed, the three appointments I've made so far to the board and one the governor, I have weighed up a range of different experience and different perspectives and I would expect future treasurers of either political persuasion to do that too,” he said.

In a further response, the Treasurer accused Mr Dutton of “looking for a fight where one doesn’t exist”.

“We shouldn’t look for disagreement where it doesn’t exist. I think broadly that objective is shared, whether it’s the labour movement or the business community, certainly the government,” he said.

Lowe’s successor chosen

As mentioned previously, Mr Chalmers and Prime Minister Anthony Albanese named outgoing RBA governor Philip Lowe’s successor after his seven-year term during a cabinet meeting on 14 July 2023.

Michele Bullock was named as the next governor of the RBA as of 18 September, when she will become the central bank’s first female governor.

Ms Bullock, currently the deputy governor of the central bank, has been with the RBA since 1985.
She is deputy chair of the Reserve Bank Board and deputy chair of the Payments System Board and a member of Chief Executive Women (CEW). Prior to her current role, Ms Bullock was the assistant governor (financial system).

Ms Bullock also held a variety of senior management positions in the bank. She was assistant governor (business services), assistant governor (currency), adviser for the currency group, and, before that, head of payments policy department.

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