1 00:00:00,120 --> 00:00:02,160 Speaker 1: A little bit of a brew haha is developing about 2 00:00:02,200 --> 00:00:05,920 Speaker 1: the Reserve Bank's independence. Critics have raised concerns that the 3 00:00:05,920 --> 00:00:09,120 Speaker 1: bank's temporary governor and chair might be acting to please 4 00:00:09,200 --> 00:00:12,040 Speaker 1: Nikola Willis Genative trainees. The Herald's Business edits room with 5 00:00:12,119 --> 00:00:12,600 Speaker 1: us agen a. 6 00:00:13,440 --> 00:00:15,080 Speaker 2: Hey, Heather, what does it look like to you? 7 00:00:15,120 --> 00:00:17,680 Speaker 1: Does it look to you like political interference or is 8 00:00:17,720 --> 00:00:19,799 Speaker 1: it simply that these guys at the Reserve Bank have 9 00:00:19,880 --> 00:00:23,320 Speaker 1: reached the same conclusion as Nikola Willison, myself and various 10 00:00:23,360 --> 00:00:25,279 Speaker 1: other people that they need to do something about the 11 00:00:25,280 --> 00:00:26,280 Speaker 1: capital requirements. 12 00:00:27,920 --> 00:00:29,800 Speaker 2: Well, I don't think I think that would be a 13 00:00:29,840 --> 00:00:32,800 Speaker 2: stretch to say there's political interference, But I think it 14 00:00:32,840 --> 00:00:35,480 Speaker 2: is just worth noting that a couple of the key 15 00:00:35,560 --> 00:00:38,440 Speaker 2: people who are in charge of the Reserve Bank at 16 00:00:38,479 --> 00:00:41,360 Speaker 2: the moment, in terms of the board chair and acting governor, 17 00:00:41,680 --> 00:00:45,920 Speaker 2: they have, you know, potential conflicts of interest. So share 18 00:00:46,520 --> 00:00:50,480 Speaker 2: Neil Quigley. He's also the vice chancellor of Waketo University 19 00:00:50,880 --> 00:00:53,440 Speaker 2: and the university is trying to get the government to 20 00:00:54,080 --> 00:00:57,280 Speaker 2: fund a medical school. So it's a Neil Quigley's interest 21 00:00:57,320 --> 00:01:00,040 Speaker 2: to be on side with the government. It's also and 22 00:01:00,480 --> 00:01:03,840 Speaker 2: Christian hawksby the acting government. It's on his best interest 23 00:01:03,880 --> 00:01:06,520 Speaker 2: to be on side with the government because he might 24 00:01:06,640 --> 00:01:08,560 Speaker 2: want to be the governor, he might want to be 25 00:01:08,600 --> 00:01:11,399 Speaker 2: appointed to that role. So that, you know, I just 26 00:01:11,400 --> 00:01:13,800 Speaker 2: think it is worth pointing out those two things. It 27 00:01:13,880 --> 00:01:15,920 Speaker 2: would be a step too far to say that they 28 00:01:15,959 --> 00:01:19,920 Speaker 2: are definitely acting in a way that is intentionally to 29 00:01:19,959 --> 00:01:23,080 Speaker 2: please the government. Now in terms of the two issues 30 00:01:23,120 --> 00:01:25,760 Speaker 2: that are at the issues that we're talking about here 31 00:01:25,800 --> 00:01:30,040 Speaker 2: are that after Adrian Or left, the Reserve Bank decided 32 00:01:30,120 --> 00:01:32,679 Speaker 2: it would in fact review its bank capital rule, so 33 00:01:32,720 --> 00:01:35,840 Speaker 2: that's the way it regulates banks that aligns with what 34 00:01:35,880 --> 00:01:40,960 Speaker 2: the government wants. The government also announced after Adrian Or 35 00:01:41,040 --> 00:01:43,800 Speaker 2: left that the Reserve Bank wouldn't be getting as much 36 00:01:43,840 --> 00:01:47,400 Speaker 2: funding as it requested from the government. 37 00:01:48,440 --> 00:01:50,440 Speaker 1: Is it sustainable for these guys to be in the 38 00:01:50,480 --> 00:01:53,120 Speaker 1: positions that they are in the long term or even 39 00:01:53,120 --> 00:01:54,840 Speaker 1: in the medium term, given the fact that there are 40 00:01:54,920 --> 00:01:55,920 Speaker 1: these conflicts of interest. 41 00:01:57,200 --> 00:02:01,400 Speaker 2: Well, it is interesting because the Finance Minister, Nichola Willis, 42 00:02:01,400 --> 00:02:06,200 Speaker 2: had the opportunity to appoint another chairman to the board 43 00:02:06,280 --> 00:02:10,600 Speaker 2: of the Reserve Bank, but she decided to reappoint Neil Quigley, 44 00:02:10,720 --> 00:02:14,960 Speaker 2: and she did that with the context of the medical 45 00:02:14,960 --> 00:02:17,600 Speaker 2: school there. So I suppose the decision was made that 46 00:02:17,600 --> 00:02:22,280 Speaker 2: that was a good appointment in Nichola Willis's eyes. That 47 00:02:22,400 --> 00:02:25,000 Speaker 2: was also an interesting appointment because she'd been so critical 48 00:02:25,000 --> 00:02:28,200 Speaker 2: of Adrian Or and Neil Quiggley had been a backer 49 00:02:28,280 --> 00:02:31,360 Speaker 2: of Adrian Or. So some Reserve Bank observers thought that 50 00:02:31,520 --> 00:02:35,120 Speaker 2: was an interesting decision by Nikola Willis in terms of 51 00:02:35,240 --> 00:02:39,440 Speaker 2: Christian hawksby arguably he is the right person to be 52 00:02:39,560 --> 00:02:42,119 Speaker 2: doing the job at the moment. Previously he was the deputy, 53 00:02:42,480 --> 00:02:45,400 Speaker 2: Now he's the acting. He's well positioned to step in. 54 00:02:46,560 --> 00:02:49,960 Speaker 2: So I wouldn't go so fast to say that that's 55 00:02:49,960 --> 00:02:52,239 Speaker 2: a bad decision. I wouldn't say that as all his 56 00:02:52,480 --> 00:02:55,520 Speaker 2: experience and it's probably better than getting someone else in 57 00:02:55,560 --> 00:02:58,920 Speaker 2: at this point. But I think there is value in 58 00:02:59,040 --> 00:03:02,680 Speaker 2: just recognizing some of the you know, some of the 59 00:03:02,720 --> 00:03:03,600 Speaker 2: other interests there. 60 00:03:04,000 --> 00:03:06,200 Speaker 1: Interesting. Hey, Jane, thanks very much, really appreciate you talking 61 00:03:06,240 --> 00:03:08,799 Speaker 1: us through Genetive Trainey The Heralds Wellington Business Edit. 62 00:03:09,480 --> 00:03:12,639 Speaker 2: For more from Heather Duplessy Allen Drive, listen live to 63 00:03:12,760 --> 00:03:15,800 Speaker 2: news talks that'd be from four pm weekdays, or follow 64 00:03:15,840 --> 00:03:17,600 Speaker 2: the podcast on iHeartRadio.