When Orr resigned, the board agreed it would withdraw the letter, as Orr contested parts of it.
The pinch is, Quigley refused to elaborate on why Orr resigned on the day of the resignation, only to say it was a “personal decision”.
Then in June, the bank said the resignation was due to Orr disagreeing with the board over the amount of government funding to pitch for.
Quigley denied there were conduct issues at play. Indeed, the board agreed to bin the letter that flagged concerns over Orr’s behaviour in two meetings in late February.
On Wednesday, it came to light (via documents released under the Official Information Act) that Quigley berated Treasury for taking detailed minutes of one of these meetings and agreeing to release them publicly.
The minutes said Orr “expressed his frustration regarding the relationship between the RBNZ and the Treasury”. He then left the meeting before everyone else, including Willis.
Did Willis force Quigley’s hand?
Speaking to Newstalk ZB on Friday night, Willis said she would have asked Quigley, who had been on the board for 15 years, to resign had he not done so himself.
She said that earlier in the day, she talked to Quigley about “ongoing criticism” of the board’s handling of information relating to Orr’s departure.
“I had expressed to him my concern that the bank’s reputation was being impacted, and he had agreed with me that that was a serious matter,” Willis said.
Could Willis have been more forthcoming?
Pushed on whether she herself had been transparent through the ordeal, Willis said she reiterated on several occasions that the bank should have been more open.
She conceded she knew Orr stepped back from the role before he resigned, and knew the board gave Orr a letter with its concerns.
However, Willis said she didn’t want to get involved, as she wanted to uphold the Reserve Bank’s independence from the Government.
Willis never responded to questions the Herald emailed her on Thursday night, asking if she still had confidence in Quigley, whether she had been complicit in what looked like a cover-up, and how the public could have confidence in Quigley’s judgement when it came to the appointment of a new Governor.
So the Reserve Bank doesn’t have a permanent chair or Governor?
The board is responsible for recommending who Willis gets the Governor-General to appoint Governor.
Willis declined to tell the Herald whether she had received a recommendation yet, but said the process was “well advanced”.
“It’s a board recommendation and I have confidence in the process they have followed.”
The Herald understands those in the running for Governor include interim Governor Christian Hawkesby, former Treasury chief economic adviser Dominick Stephens, Auckland University macroeconomics professor and Reserve Bank Monetary Policy Committee member Prasanna Gai, and Motu Research executive director John McDermott.
Willis said the board’s deputy chairman Rodger Finlay would exercise the functions of the chairman until an appointment was made. The search would also begin for an additional board member to fill the vacancy created.
“Mr Quigley has decided that having overseen a number of key workstreams for the Bank, now is the appropriate time for him to hand over to a new Chair,” Willis said in a statement.
“Mr Quigley departs with a new funding agreement in place, a major review of [bank] capital settings out for consultation and the recruitment of a new governor well-advanced.
“He leaves the bank well-positioned for the future. I thank him for his service and wish him well for the future.”
The Herald has requested comment from Quigley.
He continues to serve as the Vice-Chancellor of the University of Waikato.
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.
