Its a tense time at the Reserve Bank. It currently has an Acting, or Temporary, or Stand-In, or Stand-Up, or On Probation, or Interim, Governor ever since the Former Governor walked off in a huff. Finance Minister Willis and Reserve Bank Chair of the Board, Neil Quigley, who is also Vice Chancellor of Waikato University, are discussing monetary & financial regulation matters which put potentially billions of dollars of Big Monopoly Private Bank profits and bonuses at stake. This week, Willis & Quigley together announced there would be a Review of the Capital Requirements that the retail banks must adhere to. The Finance Minister was the driver behind that announcement, which came about from lobbying by the Big Banks.
So the question is - what is to stop Finance Minister Willis Making Offers to the Reserve Bank Board Chair that he cannot refuse? Since he is at the very same time begging the Coalition Government to be granted a new Medical School at Waikato, which will come at a cost to the public purse of up to half a billion dollars. Should the Reserve Bank Chair not go along with Willis' demands for reviews of bank regulations leading up to their potential abandonment, she can retaliate by scuttling his Medical School. Is there not a conflict of interest that makes Mount Everest look like a mole hill? We also have an Acting Reserve Bank Governor who has just had a pay rise from about $500,000 (as a Deputy) to about $850,000. He is fully dependent on Willis for his on-going employment in that job. She's the one who must sign off whether he will become Temporary Governor for 6 more months, or go back to being a Deputy. And we have a Chair of the RBNZ Board who cannot say no to Willis for fear of losing his medical school. Both have a financial conflict of interest when it comes to making the best (politically independent) decisions in the name of protecting the nation's monetary & financial systems. Its unprecedented in NZ economic history.
Did I miss something, because the Finance Minister has put herself in a position that has, as we speak, destroyed the political independence of the Reserve Bank of NZ. Willis has already taken over the RBNZ on behalf of the Big Aussie Bank lobby. How can she pretend she's taking on monopoly power when she's stabbing Kiwis in the back by commandeering our hallowed State institutions, selling them out to Big Business? My view she's incapable of competently performing the job of Finance Minister & Minister of Economic Growth. The entire re-election of the Coalition is based on its ability to deliver in terms of better economic outcomes for Kiwis. She has proven she has no clue how to do so, other than "seek advice". She has no clue what she has gone and done to the RBNZ by creating conflicts of interest that expose her to claims of capturing the leadership of the Bank with threats of significant financial retribution should they not bend to her will.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
Did I miss something, because the Finance Minister has put herself in a position that has, as we speak, destroyed the political independence of the Reserve Bank of NZ. Willis has already taken over the RBNZ on behalf of the Big Aussie Bank lobby. How can she pretend she's taking on monopoly power when she's stabbing Kiwis in the back by commandeering our hallowed State institutions, selling them out to Big Business? My view she's incapable of competently performing the job of Finance Minister & Minister of Economic Growth. The entire re-election of the Coalition is based on its ability to deliver in terms of better economic outcomes for Kiwis. She has proven she has no clue how to do so, other than "seek advice". She has no clue what she has gone and done to the RBNZ by creating conflicts of interest that expose her to claims of capturing the leadership of the Bank with threats of significant financial retribution should they not bend to her will.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
5 comments:
Considering the mess our last governor made, helped along by the present board, perhaps we should give Bob from down at the local a try. He would be happy with 100k and be just as good.
Te Pati Maori and Queer Ben are chicken litter in Parliament when real issues of RBNZ competence are at stake. The Reserve Bank positions are for set terms with specific tasks , however Gov Orr fractured that premise by walking out early. The Conflict of Interest explained could not withstand scrutiny so Parliament has to analyse behaviour . Just like Judges who have set terms world wide. However Judges can be dismissed by "poor behaviour "of various forms .
Parliament should have a cleanout starting with Willis , Ben ,TPM , MBIE and flushing the Reserve Bank board en masse . NZ has had enough of high salary low/no performance . Enough is Enough.
Yes - but will this ever happen in NZ? Its scale is too small.
Clueless Willis is a complete embarrassment in her proclivity to drown even in paddling-pool sized issues. Good riddance to the toxic and incompetent Orr, and may Quigley be soon to follow. BTW WTAF about a medical school costing half a billion dollars? When things go so badly wrong choose either A) Incompetence, or B) Corruption (no third option, sorry!).
I wonder and would ask, to those who read this written opine, are aware of the TEALS, that " inhabit " the Australian federal Parliament?
These Ladies come from ' privileged backgrounds ', represent some influential Electorates, have collectively stood as - opposition, to the 2 main parties - and frequently come up with ' insane, idiotic statement and ideas on where Australia should
go .
Now you ask, what has this to do with Nicola Willis, well, can I direct you to the paragraph staring with -
" Did I miss something, because .. " can I equate her stance as to being similar to the Australian Teals, " all mouth, with out thought "?
I have read elsewhere, on this Blog site, a statement that indicted Ms Willis was " prone to seeking help from advisors as to intent, direction (of travel) - she should take NZ Finance ".
I also note within this paragraph, the comment re " Big Aussie Banks ", keeping in mind that John key (conveniently) sits of the NZ Board of ANZ, a Bank, that brooks no "competition", being the the Bank that very quickly brought National Bank of NZ, when the London Owners decided to ' depart out shores '.
And a speech by the CEO of ANZ, which very clearly stated (following MS Willis saying we needed competition in the NZ Banking sector) - that the ANZ would " not welcome such a move by the Govt ".
This is the same Bank, when [dear] Roger Douglas made changes to the Banking landscape as Min. of Finance, Lange Govt, that allowed Aussie Banks to " come calling " and many minor players in both Banking & Finance [at the time, across NZ] - had pressure placed upon them to ' sell up '.
Even the BNZ was sold - offshore - to an Australian Bank.
" She has (Ms Willis) -
- proven has no clue how to do so, other seek advice...
- no clue what she has gone and done.. "
> both statements explains it all, she is NZ's version of an Australian Teal!
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