‘Fabulous dinner’: Reserve Bank spent $25,000 on exclusive Perth function after raising rates in May

The RBA spent nearly $25,000 of taxpayers’ money on an exclusive dinner for Perth’s business elite hours after raising the cash rate.

The Reserve Bank spent nearly $25,000 of taxpayers’ money on an exclusive dinner for Perth’s business elite hours after raising the cash rate last month for the 11th time, according to a report.

Freedom-of-information documents obtained by The West Australian reveal the total bill for the dinner at Fraser’s Kings Park, held hours after the RBA’s May 2 board meeting where it lifted the cash rate to 3.85 per cent, came in at $24,650.50.

At its June meeting this week the central bank raised rates again to an 11-year high of 4.1 per cent, with RBA governor Philip Lowe sparking outrage the following day by saying struggling Aussies should work more and spend less.

Fraser’s Kings Park in Perth. Picture: Facebook

According to The West Australian, the dinner last month was attended by 140 VIP guests including former WA Premier Mark McGowan, Liberal leader Libby Mettam, and executives from companies including Fortescue, Hancock Prospecting, BHP and Rio Tinto.

Dr Lowe was reportedly asked on the night about the optics of having an exclusive dinner even as many Australians were having to cut back, responding, “We’re here in Perth having this fabulous dinner because it’s really important we get out and mix with people, hear from community leaders, hear from business leaders, hear from people in the NGO sector.”

The dinner menu included grilled barramundi, risotto and lemon tart.

The total bill came to just under $25,000. Picture: Supplied

The total bill, which also included a $4331 drinks tab, worked out to just over $176 per person.

In addition to the $3000 initial outlay, the $90 per person set menu was increased by three upgrades — including extra canapes and side dishes — totalling $22 per head.

The RBA also paid $720 for additional staff hours and $919.50 for a “complete events solution package”, according to the documents.

“With an exceptional level of service and food available alongside our corporate venues for hire, our skilled team can ensure your function is carried out seamlessly,” Fraser’s website reads.

“Our highly experienced team of function professionals and chefs will ensure that every aspect of your corporate function, meeting, seminar, product launch, lunches, gala dinner or cocktail party more than meets your expectations with fabulous food, flawless service and absolute attention to detail.”

RBA governor Philip Lowe. Picture: Christian Gilles/NCA NewsWire

This week’s rate rise, which Treasurer Jim Chalmers said a lot of Australians would find “difficult to cop”, continues the central bank’s fastest tightening cycle on record in an effort to tame persistently high inflation of nearly 7 per cent.

Financial comparison website Finder estimates that the rate hike will set Aussies with an average loan back by an additional $1200 every month.

“If people can cut back spending, or in some cases find additional hours of work, that would put them back into a positive cash flow position,” Dr Lowe told the Morgan Stanley summit on Wednesday.

“People are affording to pay their mortgages even as they roll off from the fixed-rate loans to variable-rate loans. People are having to cut back with spending, and I think that’s going to be the environment we’re operating in for a while.”

The Perth dinner was held hours after the May board meeting. Picture: iStock

It’s not the first time Dr Lowe’s lifestyle advice has rubbed Australians the wrong way — in May, he told a Senate Estimates hearing that one solution to the housing crisis was for people to take in a roommate, saying “we need more people on average to live in each dwelling and prices do that”.

In March, it was revealed Dr Lowe purchased his Sydney home in 1997 with the aid of a heavily discounted, taxpayer-subsidised mortgage.

The embattled governor, whose term ends in September and may or may not be extended by the Treasurer, is facing growing backlash over his latest statements.

“Philip Lowe has suggested people struggling with housing costs consider share housing and that we should work more,” university lecturer Victoria Fielding wrote on Twitter.

“Would he like me to kick my kids out of their bedroom to bring in a stranger, and work nights as well as days? He is dangerously out of touch with reality.”

Originally published as ‘Fabulous dinner’: Reserve Bank spent $25,000 on exclusive Perth function after raising rates in May