The Abbott government can't release documents on its decision to give the Reserve Bank a grant. Source: AAP
THE Abbott government has refused to produce documentation about its decision to give $8.8 billion to the RBA's Reserve Fund, saying it would breach cabinet confidentiality.
Labor's Doug Cameron earlier this week called for the production of all documents and communication relating to the one-off grant, which Treasurer Joe Hockey said was needed to buffer the central bank against economic volatility.
But in a letter tabled in the Senate on Thursday, Assistant Treasurer Arthur Sinodinos knocked back the request, in recognition of the public interest in maintaining the confidentiality of the deliberative process of Cabinet.
"The 'decision' referred to in the Order was a decision of the Cabinet, and the various categories of documents listed relate directly to that Cabinet decision," Mr Sinodinos said in the letter.
Labor has accused Mr Hockey of playing politics with the RBA, after the treasurer accused the former government of refusing an RBA request for more funding.
Speaking in parliament, shadow treasurer Chris Bowen asked what Mr Hockey had to hide.
"You say the Reserve Bank asked for $8.8 billion this year. Well, show us the request," Mr Bowen said.
"The Reserve Bank transfer of $8.8 billion, of course, increases this year's deficit by that amount.
"Not only has the Treasurer declined to outlined the reasons for that, he has outright refused to release the documentation in breach of an order of one of the houses of the Australian parliament."
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