Oct 24, 2013

Why is the RBA being given $9 billion of your money?

Other than a few vague statements, Treasurer Joe Hockey has not told us why the RBA needs billions in taxpayer funds. Crikey writers Bernard Keane and Glenn Dyer are on the case.

The Treasurer and the governor of the Reserve Bank owe taxpayers a detailed explanation of exactly why the bank is getting a cheque for nearly $9 billion, a decision that will blow out this year’s budget deficit to $40 billion. Serious question remains unanswered about the government’s decision to give the RBA such a massive amount, in one hit, to top up its Reserve Fund.

Treasurer Joe Hockey yesterday tried to blame former treasurer Wayne Swan, referring in his “background notes” on the decision given to the media to “the determination of the previous government to take extraordinary dividends from the Reserve Bank”.

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11 thoughts on “Why is the RBA being given $9 billion of your money?

  1. Edward James

    Why is the RBA being given $9 billion of your money? The government us the taxpayers have a budget deficit. We are in debt. I do not think borrowing to pay debt is a good thing. Edward James

  2. Gavin Moodie

    Thanx for this report. I note with interest that at least 1 Crikey poster paid cash for his house rather than borrowing to pay debt.

  3. Meg Marlo

    “What does that melodramatic statement mean? What are these “challenges”? What is “before us” and why do we need “all the ammunition” if the Reserve Bank didn’t need it during the European crisis and the first debt ceiling crisis in the US in 2010 and 2011? Is something worse coming?”

    Great work boys! You asked the right questions and then took the answers straight out of our mouths, albeit, in the form of more questions.

  4. Come On Carlton

    Yeah, Edward. Where did you get it from?

  5. JStephens

    This is really interesting and something that I expect sleepy Fairfax wouldn’t even pick up. Please keep on it, I am intrigued…..

  6. bilbo smiggins

    Looking forward to see what the FOI request will throw up. On ya guys, someone needs to ‘keep the bastards honest’!

  7. Griffiths Karen

    Wayne Swann seems particularly upset by the inferences of hockey’s actions and language, and the fact that this seems to have come ‘out of nowhere’ also makes me very suspicious. I’m with most people posting on this – how insidious and hideous if this is just a political ploy! We know we wont get a ‘detailed explanation’ from the treasurer, but come on Mr Stevens, tell us what’s going on, or have you joined the LNP veil of secrecy?

  8. The Pav

    How is this a hit to the budget which is an income & expenditure matter.

    This is a capital matter. A debt to buy an asset and unless the RBA stuffs up it should be a net zero on a total basis.

  9. CML

    I agree with those above who view this move by Hockey as pure cynical politics.
    Good stuff, Bernard and Glenn. I too urge you to keep following the trail!

  10. Daniel Young

    Hockey is gambling that he’ll be repaid extra dividends from this cash injection, making the ALP look bad now and making him look better in future budgets.

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