Reserve Bank criticised by Willis over handling of Adrian Orr exit
Finance Minister Nicola Willis has criticised the Reserve Bank for its sharing of information surrounding former governor Adrian Orr's sudden resignation in March, saying the central bank could "have pulled their socks up."
The rebuke comes after the bank yesterday released documents revealing Orr quit in March due to a funding dispute with the bank's board and the Government.
It was a fact previously not disclosed publicly, with the media and financial observers having received few answers from the central bank's leadership.
"I've expressed that I think they could have shared the information they shared yesterday earlier," Willis told reporters at Fieldays today.
"I have spoken to their chairperson, Neil Quigley, and expressed my view that they did not manage that Official Information Act request well, and that I expect them to do better. He has acknowledged that they could have and should have done better."
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The morning's headlines in 90 seconds including passengers stuck on ferry overnight, new flights to Sydney coming, and the weirdest things we leave in Ubers. (Source: 1News)
Multiple journalists and financial observers have had Official Information Act request deadlines about the former governor's departure extended over the past few months.
The Finance Minister emphasised expectations around transparency from agencies.
"It's my expectation that all government agencies comply with their statutory obligations, and wherever possible, are open and transparent with New Zealanders," she said.
"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 have pulled their socks up."
In response to the minister's criticism, Quigley acknowledged shortcomings in handling information requests and added he was limited in what he could've said about Orr's resignation when it was first announced in March.
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In what it described as a response to numerous Official Information Act (OIA) requests over the resignation, the Reserve Bank revealed yesterday that Orr resigned after disagreeing with the board and Willis over operational funding.
Nicola Willis speaks to media at Parliament on May 6. (Source: 1News)
Documents show Orr believed the bank needed $1.031 billion over a five-year period, but the board was willing to accept "considerably less."
According to the Reserve Bank, this caused "distress" to Orr and led to his personal decision that he "had achieved all he could as governor" and could not continue with less funding than he thought viable for the bank to fulfil its obligations.
The bank eventually secured $750 million in operating expenses and $25.6 million in capital expenditure.
Bank chairperson 'regrets' information release delays
Quigley said he "regrets" not releasing information on Orr's departure sooner.
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"The Reserve Bank was late in producing a response to some of the OIAs we received on Adrian Orr's resignation. I regret that this delay occurred," he said in a statement.
"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.
Reserve Bank Board Chair Neil Quigley. (Source: 1News)
"As well as our obligations under the OIA, we needed to take into careful consideration the former Governor's exit agreement and privacy law.
"For this reason, we extended consultation on the information and our response, including review by senior external counsel."
He added that he was "limited" in disclosing why the former governor resigned in March.
Reason behind resignation finally revealed officially
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Orr had served in the role of governor for seven years at the time of his resignation. He left his job three years before his second five-year term was due to end.
Willis and bank officials were tight-lipped for months over the departure of one of the Government's most senior public sector bosses.
When the former governor's departure was announced on March 5, little reason was provided beyond that it was his "personal decision".
Speaking to reporters on the day, the Reserve Bank's board chairperson Neil Quigley was asked directly why Orr had resigned and whether funding issues were behind it.
Quigley was also asked whether there were any "policy, conduct or performance issues which are at the centre of this resignation".
He responded: "We have issues that we've been working through, but there are no issues of that type that are behind this resignation."
But speaking today, the bank's chairperson said he was "limited" over what he could say at the time of the media conference.
"On March 5, 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.
"We were conscious of the need to explain to staff of the Reserve Bank the potential implications for staffing levels of a lower level of funding and needed time to consider the details of that."
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