Documents Reveal Why Adrian Orr Suddenly Quit As Reserve Bank Governor
The Reserve Bank has revealed a dispute over funding was behind Adrian Orr's abrupt resignation as governor.
A raft of documents - released by the central bank under the Official Information Act - reveal an "impasse" as Orr argued Finance Minister Nicola Willis was not providing enough funding for the next five years.
In an accompanying statement, an RBNZ spokesperson said it became clear in late February that the board - chaired by Neil Quigley - was willing to agree to a "considerably" smaller sum that Orr thought was needed.
"This caused distress to Mr Orr and the impasse risked damaging necessary working relationships, and led to Mr Orr's personal decision that he had achieved all he could as Governor of the Reserve Bank and could not continue in that role with sufficiently less funding than he thought was viable for the organisation."
Both sides engaged lawyers to negotiate an exit agreement, resulting in an immediate departure and "special leave".
On 5 March, the Reserve Bank revealed Orr's sudden resignation, with three years still to run in his five-year term. At the time, Quigley said it was for "personal reasons" but would not be drawn on any details.
Orr had been expected to open a conference on 6 March with his resignation to be announced the following week, but that plan was nixed after Orr raised concerns that people were already aware of his intentions.
Curiously, an email from Orr - shortly after midday on 5 March - indicated at that stage he intended to still attend the conference.
"I will proudly open the conference tomorrow morning, noting I am there to discuss today's news. I am proud to have worked with and for you all, and I know you will succeed ahead."
Orr ultimately did not attend or speak at the conference, nor did he take questions from media.
The bank's statement also addressed speculation that the debate around banks' capital-holding was behind the resignation, saying the documents do not indicate those discussions were significant to Orr's decision.
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