Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Reserve Bank Governor Selection A Stab In The Dark

Reserve Bank Governor Selection A Stab In The Dark

INSIGHTS ABOUT THE NEWS - An organisation’s stakeholders are a person, group or another organisation with an interest or concern in its activities and can affect or be affected by the organisation's actions, objectives and policies. Not all stakeholders are equal and not all effects are positive, as a company’s staff will quickly find when their bosses plan a round of layoffs to cut costs.

As reported in the Trans Tasman Political Alert, RBNZ communications manager Mike Hannah, in a recent speech, explained how the central bank engages with its stakeholders, ranging from governance relationships, financial institutions and markets to the media, educators and the public. The bank applies “considerable senior resource” to maintaining relationships, engagement and communications.

These engagements occur against an ever-changing economic and financial backdrop. Substantial “demographic” changes among those with whom the RBNZ interacts come into considerations too. They include the outcomes of general elections “for our Parliamentary stakeholders.”

We can only speculate on who these stakeholders will be after the general election in September. We do know a change of Govt will result in changes to monetary policy and RBNZ governance. Labour would continue the RBNZ’s current inflation target of 1-3% but add the goal of full employment to the bank’s mandate.

Further, it would remove NZ’s reliance on the governor alone to set the Official Cash Rate, in effect formalising current governor Graeme Wheeler’s practice of using an OCR decision-making committee (comprising himself, two deputy governors and his assistant governor) to reach OCR decisions. Finance Minister Steven Joyce is sympathetic enough to have asked former State Services Commissioner Iain Rennie to review the merits of such an arrangement.

Whatever transpires, aspiring governors had no clue about the job they were seeking when applications closed last Saturday. The RBNZ board, which must consider the merits of the applicants and make a recommendation to the Minister of Finance, can have no idea, either.

Economic blogger Michael Reddell has highlighted the absurdity of this: an unelected board will decide who will be recommended to the incoming Minister of Finance to be governor, the sole legal decision-maker on monetary policy and for most aspects of banking regulation.

The governor gets to decide whether banks are even allowed to lend to you by residential mortgage. This “gaping democratic deficit” (too much power in one person’s hands) is worsened by the fact elected politicians (whom we can hold to account) must take a name handed to them by company directors appointed by the previous Govt.


ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Not Easy: Gordon Campbell On The Greens’ Ongoing Problems

Hard to treat the Greens’ belated decision to stand a candidate in Ohariu as being anything other than a desperation move, by a party whose own leadership is evidently concerned about its chances of survival...

A few months ago, the Greens felt able to forego that role in Ohariu in order to help a beleaguered Labour Party get its candidate Greg O’Connor across the line, and knock Peter Dunne out of the parliamentary frame. More>>

 

Closing The Gap: Ardern Rules Out Income Tax Rise

After earlier commitments by Jacinda Ardern to do something about inequality and poverty, this new position on income tax seems an about face. To do something significant about inequality requires increases in income for those at the bottom and decreases for those at the top... More>>

ALSO:

Gordon Campbell: On DHB Deficits And Free Trade

Currently the world is looking on aghast at the Trump administration’s plans to slash Obamacare, mainly in order to finance massive tax changes that will deliver most of their gains to the wealthy. Lives will be lost in the trade-off. Millions of Americans stand to lose access to the healthcare they need... More>>

Greens' Response: Slum-Like Rentals Exposed In Renting Review

“...The grim findings of the review are a wakeup call about the true state of rentals in this country. Too many renters are festering in slum-like conditions under the thumb of landlords who have largely unchecked powers and ignore tenants’ complaints when it suits them.” More>>

ALSO:

Gordon Campbell: On The Life And Times Of Peter Dunne

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>

ALSO:

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election