Press Release 34 - Reserve Bank Board, Gerard,
and A Better Method of Board Appointments

Had the method of Board appointment long sought by the Friends of the ABC been used more widely, Mr Gerard's presence on the Reserve Bank Board wouldn't be such an issue. His appointment would have been subject to satisfying a rigorous and objective selection process.

In the U.K., the (Nolan) Committee On Standards In Public Life not only developed a formal set of procedures for appointments to Boards generally, but since then most such appointments as well. Applicants are objectively examined according to both their qualifications for the position and for their commitment to the seven principles of public life: selflessness, integrity, objectivity, accountability, openness, honesty and leadership.

When invoking that process for the selection of the BBC's latest Director-General, the U.K. Culture Secretary expressed the view that

"We all want a strong BBC that is independent of government, and anyone who cares about politics, standards in public life and the quality of our media knows how much the BBC matters. It should have the self-confidence to promote those values and defend them against all comers."

That is equally true for the ABC.

As the Editor of The Australian wrote in today's [1 Dec 05] editorial: "Mr Gerard is convicted of no offence and there is no suggestion he has done anything other than discharge his duties on the RBA board with the care and diligence required by the code of conduct for members. It is his behaviour before joining the board that is at issue. ..... The questions are whether an individual pursued with a ferocity unusual even for the taxation authorities was the best selection Australian business had to offer in 2003 and whether Mr Gerard exhibited the ethics the community rightly expects from a business leader active in a major political party."

As Senator Alston [later Minister for Communications (and the ABC)]said when Opposition Spokesperson, "This blatant board stacking exercise endangers the independence and integrity of the ABC and has the potential to do grave danger to Australia's international reputation."

That is equally true for the Reserve Bank Board, which has periodically been criticised for being stacked with cronies of the government of the day.

Just recently, the Chairman of that Committee warned that "the whole (U.K.) political class" faced a lack of public confidence over standards. So these things do matter.

Whatever its record with regard to the ABC, the ALP has at least put forward its Better Board Policy, for which credit is due. We would welcome the Coalition adopting similar measures, for which we would likewise give them due credit.
1 December 2005

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