Australia central bank reforms in doubt as politics interferes
SYDNEY, Sept 10 (Reuters) -Long-delayed reforms to the Reserve Bank of Australia (RBA) could be dead in the water after the Liberal National opposition decided to oppose them in parliament, Treasurer Jim Chalmers said on Tuesday.
Chalmers told reporters he had agreed to six changes demanded by Shadow Treasurer Angus Taylor, but the opposition had decided to oppose the reform package anyway, making it very hard to get it passed into law.
The reforms, which were recommended by an independent review last year, included setting up a separate governance board to complement the current monetary policy board.
The nine-member rate-setting board would still have six outside members, which the opposition said could be used by the ruling Labor Party to include appointees friendly towards the current government.
Chalmers also offered to amend a proposal to remove the government's veto power over the RBA's rate decisions that was opposed by the opposition and the Greens party. The compromise would have allowed the government to overrule the central bank, but only in emergency situations.
Chalmers said he would still seek ways to get the legislation through parliament, but that would require the support of the Greens party and/or various independent lawmakers.
The RBA has already adopted some of the recommendations from the review, including having fewer but longer policy meetings and holding a press conference after each decision.
However, it is undecided on others, including having all board members making regular appearances to discuss their thinking on policy.
Legislation on the RBA boards' composition was due to come into effect on July 1 but has been delayed due to lack of support from the opposition.
Reporting by Wayne Cole; Editing by Jamie Freed
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