1 00:00:09,093 --> 00:00:11,972 Speaker 1: You're listening to a podcast from News Talk sed B. 2 00:00:12,373 --> 00:00:15,213 Speaker 1: Follow this and our wide range of podcasts now on 3 00:00:15,333 --> 00:00:17,533 Speaker 1: iHeartRadio Right Big. 4 00:00:17,372 --> 00:00:21,013 Speaker 2: News Last Hour. Adrian noy He is stepping down as 5 00:00:21,133 --> 00:00:23,452 Speaker 2: Reserve Bank Governor at the end of the month. He 6 00:00:23,493 --> 00:00:26,173 Speaker 2: made the announcement today, four years before the end of 7 00:00:26,173 --> 00:00:29,133 Speaker 2: his second five year term. To discuss further, we're joined 8 00:00:29,133 --> 00:00:32,213 Speaker 2: by senior political correspondent Barry so big Ya Barry. 9 00:00:32,013 --> 00:00:34,773 Speaker 3: Good afternoon, lad. It's nice to be here, Barry. 10 00:00:34,853 --> 00:00:37,613 Speaker 4: A month's notice that seems very short and dramatic. Any 11 00:00:37,613 --> 00:00:40,253 Speaker 4: word of fees being pushed or leaving or. 12 00:00:40,333 --> 00:00:43,732 Speaker 3: What's going that's always the question, isn't it what you pushed? 13 00:00:43,893 --> 00:00:46,132 Speaker 3: Or Well, the thing is I think he would have 14 00:00:46,173 --> 00:00:49,773 Speaker 3: been contemplating his future from the time that National won 15 00:00:49,853 --> 00:00:53,533 Speaker 3: the election. And to come to that conclusion is pretty 16 00:00:53,533 --> 00:00:58,413 Speaker 3: easy because when he was reappointed to the job by 17 00:00:58,493 --> 00:01:02,813 Speaker 3: Grant Robertson in twenty twenty two, you know, a five 18 00:01:02,973 --> 00:01:06,093 Speaker 3: year appointment a year after from an election, which was 19 00:01:06,293 --> 00:01:12,573 Speaker 3: really unusual because Grant Robertson knew quite forcefully from Nikola 20 00:01:12,572 --> 00:01:17,813 Speaker 3: Willison others that they didn't want Adrian or reappointed. Nevertheless, 21 00:01:18,413 --> 00:01:22,133 Speaker 3: I think it was his final finger to the National Party. 22 00:01:23,133 --> 00:01:25,293 Speaker 4: There was a spike appointment as opposed to he thought 23 00:01:25,333 --> 00:01:27,012 Speaker 4: that Adrian Oire was the best person. 24 00:01:27,292 --> 00:01:30,693 Speaker 3: Well, I think mistakenly Labor did think Adrian Or was 25 00:01:30,693 --> 00:01:33,572 Speaker 3: doing the right thing. I mean, Adrian Or was quite 26 00:01:33,572 --> 00:01:36,413 Speaker 3: public as more like a farmer. I always thought that 27 00:01:36,572 --> 00:01:39,973 Speaker 3: a leading banker. But he publicly said that he was 28 00:01:40,013 --> 00:01:43,173 Speaker 3: going to engineer a recession. While he most certainly did 29 00:01:43,173 --> 00:01:46,773 Speaker 3: that he used the ocr against the economy like a 30 00:01:46,973 --> 00:01:51,053 Speaker 3: firing squad, because it was all over the place, going 31 00:01:51,453 --> 00:01:55,373 Speaker 3: mainly in the wrong direction, going up, and sucking so 32 00:01:55,453 --> 00:01:58,653 Speaker 3: much money out of the economy that nobody had much 33 00:01:58,733 --> 00:02:03,013 Speaker 3: to spend. Needless to say, those on mortgage interest rates 34 00:02:03,333 --> 00:02:05,733 Speaker 3: the ones that suffered the most, but so did business 35 00:02:06,173 --> 00:02:10,933 Speaker 3: and the rest of it. So New Zealand into a recession. 36 00:02:11,173 --> 00:02:14,573 Speaker 3: And that's what the power of a reserve bank governor 37 00:02:14,733 --> 00:02:19,653 Speaker 3: is separate from the government. Statutorily they're separate. But you know, 38 00:02:19,813 --> 00:02:22,972 Speaker 3: I think there should be more inclusion from the Reserve 39 00:02:23,053 --> 00:02:24,933 Speaker 3: Bank and the beehive across the road. 40 00:02:25,613 --> 00:02:30,933 Speaker 4: Yes, so we essentially had the hardest landing in the OECD. Right, 41 00:02:31,213 --> 00:02:34,853 Speaker 4: how much responsibility is that on the reserve. 42 00:02:35,453 --> 00:02:38,133 Speaker 3: Feet Oh, totally. But don't forget he works to a 43 00:02:38,133 --> 00:02:41,493 Speaker 3: committee as well. So when they decide on the ocr 44 00:02:41,613 --> 00:02:45,173 Speaker 3: and what it's going to be, the committee of infinite 45 00:02:45,213 --> 00:02:49,773 Speaker 3: wisdom sits around and decides what's likely to happen in 46 00:02:49,813 --> 00:02:53,013 Speaker 3: the economy a minutes. You know, Economics, as we all know, 47 00:02:53,133 --> 00:02:56,373 Speaker 3: is a very inexact science, and so you can only 48 00:02:56,413 --> 00:02:58,613 Speaker 3: take a punt like the rest of us. But this 49 00:02:58,893 --> 00:03:02,813 Speaker 3: Adrena wall All was much more deliberate when it came 50 00:03:02,893 --> 00:03:05,973 Speaker 3: to the economy. He believed that he had his finger 51 00:03:06,053 --> 00:03:11,453 Speaker 3: on the pulse and hunting money was sort of out 52 00:03:11,493 --> 00:03:15,573 Speaker 3: of control. The government spend was out of control, and 53 00:03:15,613 --> 00:03:19,333 Speaker 3: that allowed them to spend the way they did. So look, 54 00:03:19,373 --> 00:03:23,093 Speaker 3: there's a lot resting on Adrian Or's shoulders. In a 55 00:03:23,133 --> 00:03:26,852 Speaker 3: personal sense, Adrian All was quite a nice block. I mean, 56 00:03:26,933 --> 00:03:30,013 Speaker 3: before he got these lofty positions. I remember having a 57 00:03:30,013 --> 00:03:33,933 Speaker 3: lovely dinner at the White House at Wemington, very expensive restaurant, 58 00:03:34,532 --> 00:03:36,853 Speaker 3: with another bank of mate of mine from New York, 59 00:03:37,293 --> 00:03:40,293 Speaker 3: and tasted one of the best bottles of wine I 60 00:03:40,373 --> 00:03:43,813 Speaker 3: remember with Adrian that night. But from then on in 61 00:03:44,733 --> 00:03:47,933 Speaker 3: he became more and more elusive. When it came to 62 00:03:48,013 --> 00:03:52,853 Speaker 3: journal's and so, having known him years ago, I really 63 00:03:52,893 --> 00:03:55,773 Speaker 3: don't know the man that I had dinner with that night. 64 00:03:55,853 --> 00:03:57,333 Speaker 2: Do you think the writing has been on the wolf 65 00:03:57,413 --> 00:03:59,573 Speaker 2: for some time? Barry? I remember when he was on 66 00:03:59,613 --> 00:04:01,853 Speaker 2: with Mike on the Breakfast Show, I think two weeks ago. 67 00:04:01,933 --> 00:04:04,813 Speaker 2: He sat a very chip, a very happy, very jovial, 68 00:04:05,013 --> 00:04:07,693 Speaker 2: very different from the prickly persona that we've come to 69 00:04:07,693 --> 00:04:08,293 Speaker 2: know of Adrian. 70 00:04:08,453 --> 00:04:11,973 Speaker 3: In fact, I listened to that interview and like you, 71 00:04:12,213 --> 00:04:16,333 Speaker 3: I thought, goodness, gracious me, old Adrian. He really thinks 72 00:04:16,333 --> 00:04:19,253 Speaker 3: he's on top of all this now, and indeed the 73 00:04:19,293 --> 00:04:22,253 Speaker 3: economy is starting to go in the right way. So 74 00:04:22,333 --> 00:04:25,493 Speaker 3: it maybe that Adrian thought, well, I've done the job. 75 00:04:25,773 --> 00:04:30,053 Speaker 3: You've got to remember this, the superannuation fund earning well 76 00:04:30,093 --> 00:04:33,453 Speaker 3: an excess of what he earned at the Reserve Banks. 77 00:04:33,613 --> 00:04:35,133 Speaker 4: What did he end at the Reserve Bank? Its about 78 00:04:35,133 --> 00:04:38,013 Speaker 4: eight hundred thousand, eight hundred k. Yeah, so if he's 79 00:04:38,053 --> 00:04:42,013 Speaker 4: jumping his contract two years early, then he's arguably dropping 80 00:04:42,693 --> 00:04:44,853 Speaker 4: one point six million out of his earnings. 81 00:04:45,053 --> 00:04:48,573 Speaker 3: Well, there you go. And but he dropped from well 82 00:04:48,573 --> 00:04:53,253 Speaker 3: over a million at the superannuation Fund to coming into 83 00:04:53,253 --> 00:04:56,333 Speaker 3: that job, so clearly he felt that he had a 84 00:04:56,373 --> 00:04:59,653 Speaker 3: mission to fulfill. He fulfilled it in the way that 85 00:04:59,693 --> 00:05:02,933 Speaker 3: he thought was better for New Zealand. But as it 86 00:05:02,973 --> 00:05:06,293 Speaker 3: turns out we all know now and it's easy with hindsight. 87 00:05:06,573 --> 00:05:10,333 Speaker 3: The decisions he made will go down in history, will 88 00:05:10,373 --> 00:05:13,773 Speaker 3: be the decisions that really sunk this economy, and now 89 00:05:13,773 --> 00:05:15,293 Speaker 3: we're fighting to get out of that. Yeah. 90 00:05:15,293 --> 00:05:18,453 Speaker 2: So what happens with the Reserve Bank governor position? Now 91 00:05:18,493 --> 00:05:21,013 Speaker 2: I know the Deputy Christian Hawksby has taken over for 92 00:05:21,053 --> 00:05:23,813 Speaker 2: the time being. Then will there be an appointment made 93 00:05:23,933 --> 00:05:24,493 Speaker 2: in due course? 94 00:05:24,613 --> 00:05:28,613 Speaker 3: Yeah? What happens is that the Board of the Reserve Bank, 95 00:05:29,293 --> 00:05:33,333 Speaker 3: they will consider names though it'll no doubt be I 96 00:05:33,333 --> 00:05:39,373 Speaker 3: would imagine advertised internationally for this job. And then the 97 00:05:39,453 --> 00:05:43,813 Speaker 3: recommendation is made to the Finance Minister. The Finance Minister 98 00:05:43,893 --> 00:05:46,493 Speaker 3: signs it off. So there will be a committee the 99 00:05:46,573 --> 00:05:49,573 Speaker 3: kitchen cabin to the National Party. They'll meet and they'll 100 00:05:49,573 --> 00:05:52,493 Speaker 3: decide on a governor. Even though they're meant to be 101 00:05:52,573 --> 00:05:57,693 Speaker 3: independent of the government, a political these decisions are always 102 00:05:58,333 --> 00:06:00,453 Speaker 3: a bit more political than what we was led to believe. 103 00:06:01,133 --> 00:06:04,053 Speaker 4: And Adriana has been on a hiring blitz, has anty 104 00:06:04,173 --> 00:06:06,853 Speaker 4: over those time in the Reserve running. 105 00:06:06,573 --> 00:06:08,333 Speaker 3: The Reserve hasn't all the publics. 106 00:06:09,493 --> 00:06:12,453 Speaker 4: There's huge, huge amounts of people working there that weren't 107 00:06:12,493 --> 00:06:15,013 Speaker 4: working there before he was there exactly. So they could 108 00:06:15,013 --> 00:06:18,693 Speaker 4: be an interesting position if National put a new a 109 00:06:18,733 --> 00:06:21,573 Speaker 4: new boss, a new GARV that goes, maybe we don't 110 00:06:21,573 --> 00:06:22,853 Speaker 4: need all these people just to move. 111 00:06:22,733 --> 00:06:24,573 Speaker 3: One number up and gone Brush. 112 00:06:25,653 --> 00:06:26,693 Speaker 2: I'm sure he'd love to. 113 00:06:27,853 --> 00:06:31,253 Speaker 4: That would be a great phoenix from that on the flames. 114 00:06:30,973 --> 00:06:33,213 Speaker 2: Absolutely final one for you, Barry out a team. What 115 00:06:33,253 --> 00:06:35,173 Speaker 2: would your rate Adrian or as Reserve bank? 116 00:06:35,453 --> 00:06:38,333 Speaker 3: Oh, he had a hel of the time and the 117 00:06:38,373 --> 00:06:40,773 Speaker 3: COVID thing didn't make it easy for him. I'd give 118 00:06:40,813 --> 00:06:43,893 Speaker 3: him the five five five yep, right, I. 119 00:06:43,853 --> 00:06:45,213 Speaker 4: Feel like there's a begrudging five. 120 00:06:46,293 --> 00:06:48,253 Speaker 2: Barry. Always good to see you, Thank you very much 121 00:06:48,253 --> 00:06:51,893 Speaker 2: for coming. And that is Senior political Correspondent Barry soapad 122 00:06:52,333 --> 00:06:52,933 Speaker 2: for more. 123 00:06:52,773 --> 00:06:56,173 Speaker 1: From news talks'd be listen live on air or online 124 00:06:56,213 --> 00:06:58,613 Speaker 1: and keep our shows with you wherever you go with 125 00:06:58,693 --> 00:07:00,653 Speaker 1: our podcasts on iHeartRadio.