Prime Minister Christopher Luxon on Herald NOW talking foreign buyers' announcement coming this week, efforts to reduce crime and fast-track legislation. Video / Herald NOW
The Prime Minister has criticised the Reserve Bank and its ex-chairman over the handling of “employment issues” with former Governor Adrian Orr.
RBNZ chairman Neil Quigley resigned late Friday, following the shambolic fallout from Orr’s resignation in March.
Christopher Luxon told the Mike Hosking ZB Breakfast show this morning thathe and his Minister of Finance were unhappy with how the matter was handled.
Luxon said, however, he did not think it made a reputational mess of the country’s central bank.
“There were issues around the handling of the employment issues with the governor. That wasn’t as fully transparent as it needed to be. You heard Nicola [Willis] express her unhappiness about it. We’re unhappy.
“It could have been much better done, more transparent,” Luxon said.
Prime Miniter Christopher Luxon in studio with Mike Hosking on Newstalk ZB: 'We're unhappy' about handling of Orr resignation. Photo / Mark Mitchell
“I think he [Quigley] made the right decision, actually thinking about the reputational damage that would have been done if he had carried on [as chairman].”
Quigley’s resignation after 15 years at the RBNZ was “entirely appropriate” in the wake of the controversy, Luxon told Herald NOW.
The RBNZ was last Thursday pushed by the Ombudsman to reveal there was more to Orr’s resignation than the public was led to believe.
It revealed Orr temporarily stepped down as governor a week before he resigned on March 5.
Former RBNZ chairman Neil Quigley (centre) and former Governor Adrian Orr (right). Photo / Mark Mitchell
Orr stayed out of the office during this time, as the board presented him with a letter raising concerns over his conduct in meetings, the lack of trust between him and the board, Treasury, and Willis, and whether Orr could perform his job with less funding than he had requested.
When Orr resigned, the board agreed to withdraw the letter, as Orr had contested certain 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 became apparent (via documents released under the Official Information Act) that Quigley berated the 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.
Luxon told Mike Hosking ZB Breakfast thatthe appointment ofa new governor was weeks away.
Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.
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