Finance Minister Nicola Willis has given Reserve Bank chairman Neil Quigley a telling-off for mismanaging communications around the resignation of Adrian Orr in March.
She told reporters, during a press conference at Fieldays, that the RBNZ should have shared the information published on Wednesday earlier.
“I have spoken to Chairperson Neil Quigley and expressed my view that they did not manage that Official Information Act (OIA) request well and that I expect them to do better.”
Willis said Quigley had acknowledged the bank “could have, and should have, done better” and that it was her expectation that Government agencies would be “open and transparent with New Zealanders” wherever possible.
“Of course they need to balance that against their legal obligations, when it comes to employment discussions and agreements, but on this one I think they could’ve pulled their socks up,” she said.
Journalists made OIA requests to the bank shortly after Orr resigned on March 5. Responses are supposed to be delivered within 20 working days, although that can be extended to 40.
The Reserve Bank missed both deadlines while it consulted on what information to make public. It ultimately decided to withhold substantial discussions between Orr, the rest of the board, and senior leadership.
Instead of publishing some material it wrote a statement summarising events. This was effectively a press release, with information that was known to the bank at the time of Orr’s resignation.
When Interest.co.nz asked Quigley about why he withheld Orr’s motivation he was defensive, complaining he was “being questioned [as if by] a lawyer”, but then later implied in an email the exit agreement prevented him from being more upfront.
At the May Monetary Policy Statement press conference, Interest.co.nz asked Christian Hawkesby—who has temporarily stepped into the role of Governor, chief executive, and board director—whether the information that had been made public at that time was a complete and transparent picture.
Hawkesby said he “couldn’t keep track of everything that’s in the public domain” but the team was busy processing Official Information Act requests, which would provide more information.
“We need to follow a process and consult and work through things to provide accurate information,” he said.
After Orr’s resignation, the RBNZ board struck a funding deal with Finance Minister Nicola Willis and signed off a review of prudential capital settings.
In a statement on Thursday afternoon, Quigley said he regretted the late response to the Official Information Request.
“The circumstances and the volume of information associated with the OIAs on Adrian Orr’s resignation were complex, and we needed to be sure that our consideration of relevant information was comprehensive.”
It required extensive consultation and the resulting response was reviewed by a senior lawyer from outside the central bank.
“On 5 March I was limited in what I could say about the former Governor’s resignation both by the terms of his exit agreement and the fact that we were still working through finalisation of the detail of the next Five-Year Funding Agreement (FYFA),” he said.
“We were conscious of the need to explain to staff of the RBNZ the potential implications for staffing levels of a lower level of funding and needed time to consider the details of that.”
11 Comments
“Of course they need to balance that against their legal obligations, when it comes to employment discussions and agreements, but on this one I think they could’ve pulled their socks up,”
Sounds like a weak schoolmaster/-mistress trying to look tough. But if anyone has any doubt that Aotearoa does not have a high priest club, this is an indicator that we do. The central banking complex has become almost sacred across the Anglosphere. I know that DJT doesn't think it should be like this, but it is the reality.
In defence of Orr, we don't know what was agreed upon or promised prior to this government coming to power.
Exactly, he could have just toed the line for the paycheck. Never been his greatest admirer, but walking away was the better off the two options.
It would be a thankless task regulating the large banks. They have access to the best legal advice, have considerable influence politically. At the end of the day, does anyone thank him that there have been no bank credit events on his watch? Do we want them to regulate more effectively (Du Val for example)? That requires more resources.
It doesn't really matter as to what may have been agreed to by Labour, one should always be flexible enough to change direction if necessary.
Or, the last resort of the public servant who disagrees with the direction of travel is to resign. To walk away and not kick up a huge fuss about it has some dignity.
Moral fortitude, at the end of the day, is paramount.
The rest is horsepoo.
And there's a lot of it about...
Both Willis and Orr are/were peddling a lie - and it's becoming more obviously so, with every passing day. That you could have economic growth forever, is the first part of that lie - the second is that you could attempt it while not closing-off our life-supporting systems.
It is simply unacceptable to the “tax farmed” that these bureaucrats hide. Shall I stop paying taxes until they agree to be transparent? Remind me again, that contract I have with my Government, is there some fine print that I missed?
Obviously the Big Banks outmuscled Orr. And they are the big contributors to both Nats and Lab. And I recall that protests that the then Opposition Nats and their buddies had when Orr got his five year term. Seems we have our home grown DOGE.
"And I recall that protests that the then Opposition Nats and their buddies had when Orr got his five year term. "
Recall also that in reappointing Orr without Nationals agreement months before the general election, Labour/Robertson broke with decades of Parliamentary consensus & precedent.
Big tick for Nicola from me.
1...The bank wanted ridiculous amounts of our money for their own operation.
2 ... They are happy to mislead us.
3..... Then they create something called the Baroda project. "Baroda" aka "Fibs"
Fibs is a term that brings up a picture of ugly disputing children. All with snotty noses.
Not people we want running the bank and pivotal to the economy.
Did he get the remaining term of his contract paid out?
Hope he used the same lawyer as Andrew McKenzie
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