Reserve Bank delays releasing information on Adrian Orr’s shock resignation, as restructure sees executives leave

Adrian Orr has gone to ground since leaving the Reserve Bank, other than to talk about a project for a new fale malae Pasifika centre in Wellington. Photo / Mark Mitchell

The Reserve Bank of New Zealand is continuing to delay releasing information related to Adrian Orr’s sudden resignation as governor three months ago.

The central bank was today due to respond to queries the Herald made under the Official Information Act (OIA) straight after Orr resigned on March 5.

However, a Reserve Bank of New Zealand (RBNZ) spokesman said the release had once again been pushed out, as the bank was still consulting on what information it would make public.

Orr is yet to explain his resignation, announced almost midway through his second five-year term in the very powerful position and a day before the RBNZ hosted an international conference.

RBNZ board chairman Neil Quigley and Finance Minister Nicola Willis have deflected questions on the matter, saying they were for Orr to answer.

Orr hasn’t responded to the Herald’s requests for comment, but has talked to the Post, in his capacity as Fale Malae Trust chairman, about his disappointment over the Government pulling funding for the building of a large open-roofed building (fale) and lawn (malae) on Wellington’s waterfront.

The Herald had expected to hear from the RBNZ in early April, as the OIA requires it to respond to requests for documents within 20 working days.

On May 14, it wrote to the Herald to say it hoped to respond by May 30.

The RBNZ said, “Given the volume of information and the amount of material that necessitates withholding under the OIA, we will be responding in large part in the form of a summary ...

“We are also releasing a paper from Nick McBride, RBNZ general counsel, to the RBNZ board about the resignation of former governor Adrian Orr in part.”

The rumour mill has been turning over why Orr quit as abruptly as he did.

It is no secret he clashed with Willis, who didn’t mind it being made public that her press secretary prepared her for possible questions from the media on whether Orr raised his voice during meetings with her. She subsequently said he didn’t.

Willis gave the RBNZ less funding than it requested and sought advice on compelling it to change the way it regulates banks by allowing them to hold less capital than is currently planned.

Three weeks after Orr resigned, the RBNZ board said it would review the capital rules, which Orr fiercely defended in the face of a long-standing campaign from the banking sector for these to be loosened.

Since Orr’s departure, a restructuring of the bank’s most senior staff has also been completed quickly, before the RBNZ’s new five-yearly funding package, applying from July 1.

Under the leadership of Christian Hawkesby – Orr’s former deputy, who is acting governor until a permanent appointment is made – several “assistant governor” roles have been cut.

The restructuring has seen former assistant governors Kate Kolich, Greg Smith, Simone Robbers and Sarah Owen leave.

Meanwhile, Karen Silk, Kate Le Quesne, John McDermott and Angus McGregor (in an acting capacity) have filled the four consolidated assistant governor roles.

In the next tier down, the number of “director” roles has also been trimmed from 29 to 20, with the new structure taking effect on June 16.

The RBNZ said it would consult with staff about “potential organisation changes more broadly” later this month.

This is the second major staffing shake-up at the bank in four years.

A restructuring under Orr’s leadership in 2021 saw the departures of at least 10 of the RBNZ’s 26 most senior staff (including deputy governor Geoff Bascand and chief economist Yuong Ha), many of whom had been at the bank for several years.

Three of the assistant governors Orr brought in after the 2021 restructuring are among those who have just left.

The RBNZ pointed to a “staffing transition” as the reason it hasn’t released on time a document, under the OIA, on its bank capital review to the Labour Party.

It took its time to release a copy of the first bid it made to Willis outlining how much funding it needed between 2025 and 2030, and still hasn’t released a copy of the more modest pitch it made after Willis shot down its initial request.

Hawkesby brushed off a question, at last week’s monetary policy press conference, on whether he wanted to be appointed governor for a full term.

“I believe that there is a job advert out there. I haven’t had time to dust off my CV yet. I’ve been quite busy,” he said.

“The really important thing about the appointment of a five-year term governor is that it’s an open, transparent process, that we get the absolutely best candidate that we can for the role. Because the legitimacy of anyone in this governor position at the bank is crucial in terms of the trust and confidence in achieving our mandate.”

Asked to shed light on why Orr’s resignation was announced in a hurry, five days before it was planned to be unveiled (according to documents released by Willis), Hawkesby said, “You’re going back a long way now – a couple of months ago".

“My understanding is it was announced when Adrian decided to resign … and that turned out to be the night before our conference.”

Jenée Tibshraeny is the Herald‘s Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.