Finance Minister Grant Robertson doesn’t have “any concern at all” about a raft of staffing changes underway at the Reserve Bank (RBNZ) at a time it faces a tricky battle with rising inflation.
Deputy Governor Geoff Bascand and Chief Economist Yuong Ha have resigned and will leave the organisation in January and February respectively. Both sit on the seven-member Monetary Policy Committee, which influences interest rates.
The RBNZ is also expanding its senior leadership team, and consulting on a proposal to change some senior management roles and reporting lines.
All up at the highest levels, it needs to recruit up to five board members, a chief economist, five assistant governors and two external Monetary Policy Committee members - assuming no existing contracts are renewed.
Robertson recognised the RBNZ has received more government funding to increase its capability, particularly as it’s being required to take a more hands-on approach towards regulating banks, insurers and non-bank deposit-takers.
Asked whether he was worried about the amount of change underway, as the RBNZ faces the challenge of removing monetary support from the economy, Robertson said, “From time-to-time in institutions, you get change. But I think both Geoff and Yuong have done great jobs, and I know they’re leaving still very committed to the organisation.
“I think the Governor’s done an excellent job through very, very challenging times. Everybody knows Adrian - he wears his heart on his sleeve.”
Governor Adrian Orr has responded facetiously over the past few days to questions related to senior staff leaving the Bank.
“Slavery has been abolished and people can choose to do what they wish,” Orr told National MP Stuart Smith when he appeared before the Finance and Expenditure Committee to talk about the RBNZ’s Monetary Policy Statement on Thursday.
When Smith asked whether there was a cultural issue at the Bank driving turnover and whether exit interviews were being done by an independent body, Orr responded, “Wow, pointed question…
“We have the deputy governor Geoff Bascand retiring, so that’s great news. Thank you, Geoffrey. And Geoffrey will be available to all in due course to chat about everything that he’s experienced here…
“Yuong Ha, our chief economist, has chosen to go into a far more challenging role. What are you going to be doing?”
Ha, who was sitting next to Orr, responded, “Coaching my son’s cricket team, taking a break.”
Orr then said, “And meanwhile we are well versed in attracting and retaining very very high-quality talent and staff and I’m very proud to have our deputy governor-anointed beside me here, Christian Hawkesby. I can leave the room if you want to talk to him about the culture.”
Orr answered a question about staffing from a journalist on Wednesday in a similar tone (see video above).
Asked whether he was committed to being at the helm of the bank during the entirety of this unusual period, Orr responded, “I can answer for myself - I have a continued term. But I can’t tell you when this period of uncertainty finishes, so I’m not sure how to fully answer that question.”
He said the “global search” for staff was “well advanced”.
Annual staff turnover at the RBNZ sits at 13.5% - only just above the 20-year average of 13.0%. It was 19.3% in 2018 (the year leadership changed), 16.5% in 2019, and 11.4% in 2020.
The Bank has increased its staffing levels from 274 full time equivalents in 2019, to 349 in 2020, and 411 in 2021.
Accordingly, the average length of time RBNZ employees have been at the bank has been falling. At 5.2 years, it’s below the 20-year average of 7.9 years.
For more on the policy and staffing changes underway at the RBNZ, see this opinion piece.
33 Comments
It's not quite slavery but when the central banks are destroying the value of money and labor, it is essentially taking people's liberty from them. It's disappointing that the media cannot confront the ruling elite about this (to do so would probably end one's career indirectly). Unfortunately, the sheeple don't really understand what's going on. The intuition of the people out protesting about vaccinations and freedom tells them something is wrong, yet these people are also written off as 'deplorables.'
In short Governor Orr has more-or-less said he's happy to maintain the life-styles of the landed gentry (property owning class) by printing money and devaluing the incomes of workers.
He then goes on to say this is ok because workers have a job. This is what he's going with lol.
He blames the Retail Banks for their mortgage lending driving up prices, then claims the Retail Banks are responsible lenders.
Governor Orr, you have made a hash of things. I hope the RBNZ is not making decisions based on the-Phillips-curve. I was shocked when I heard Bernard Hickey make mention of the-Phillips-curve on TheKaKa. It's a discredited metric to base interest-rate decisions on. Perhaps under a gold standard it had some value, but under our MMT system [the way the world works currently] - using it would almost be tantamount to criminal negligence IMO.
"Finance Minister Grant Robertson doesn’t have “any concern at all” about a raft of staffing changes underway at the Reserve Bank (RBNZ) at a time it faces a tricky battle with rising inflation" .
Now since when the politicians have any concerns for anything except for themselves.
The most selfish and low level beings in the world become politicians. The modern ones are just one level below.
NZ was supposed to be an equality based social economic country. But just see what have we done to it.
I know most will no agree to what i said but honestly just if anyone has some grey matter in the head and not all full of greed and hatred, then just think.
Don't want anyone to do anything else but think what are you creating for your next generation.
"NZ was supposed to be an equality based social economic country."
That was actually, 'equality of opportunity', not 'equal, after after the individual choices we each make'. "Equal despite choices made" would be public problem, perverse signals about work, community, and incentives. We have enough odd public incentives already.
And here's a good example of odd public inventiveness.
A historic one-bedroom, one-bathroom Arrowtown cottage - purchased about 70 years ago for £350 - sold this week for $1.85 million.
No Blobbles. You have not described equal opportunity rather the silver spoon theory where someone born with rich parents is a better person or has better opportunities. In reality, nz is a country with a classless system that makes us relatively equal and everyone has an opportunity to succeed through their own efforts.
The secret to success is..... da da da daaa.... not losing enthusiasm despite failing time after time. One person, namely one of the greatest leaders Winston Churchill described stumbling from failure to failure. That is a perfect picture of success, being persistent, never giving up and creating your own story.
Orr comes across as defensive. He could have given similar answers, particularly about Ha, without being a dick about it. For example, all organisations are experiencing higher than usual turnover as people turn their mind to doing different things post-COVID. I’d be concerned about how he handles criticism if this is how he responds with what appear to be quite ordinary questions. In the current environment, leaders need to be open-minded and it doesn’t seem like Orr cares much about what other people think. He’d get along well with Xi, Putin, Bolsanaro and Erdogan.
When Orr was appointed I thought he was a breath of fresh air compared to previous Governors, being an ex Taupo Truck Driver of Pacific Island Descent. But I was wrong, he appears to be out of touch with the real New Zealanders. In fact he acts like your average Politician, very similar to Kumikaze Collins.
Their loss in credibility is loosing trust in the monetary system, through creating massive debt, as inflation & unemployment spiral out of control, asset prices go up & up & up & yet they only look at the CPI rather than what actually affects people lives?
We are convinced their high priests of financial control, when their reactionary, buying bonds, manipulating rules & money by minute degrees until exhausted, when it's what they say that actually drives market sentiment, causing dysfunctionality and contradiction with the Government housing policies.
What are they going to do next, going by the departure of senior staff it won't be good.
Unless the two senior staffers are going to the likes of Goldmans in NY etc, then does seem cause to be concerned around the culture of the bank. When senior staff members and key members at that, leave is a cause for concern.
Now if they are leaving for better opportunities in the commerical sector then that is understandable - reality is that in a global sense they are underpaid given their exp etc and IB's and Comm Banks would always be interested in grabbing people of that quality.
If however they are leaving to take "time out" then that is probably an indication that something is not right at the bank and given the importance of the RBNZ to NZ and it's economy, serious questions should be asked.
Though when when read of Orr's responsence to questions - he does display a large amount of immaturity and makes you question if he responds in this fashion, is he the right man for the job.
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