Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Treasury question Reserve Bank’s governance structure

15 August 2013

Treasury question Reserve Bank’s governance structure

New information released by the Green Party today shows that Treasury has recommended a review of the Reserve Bank’s governance structure.

Reserve Bank minutes and papers released to the Green Party under the Official Information Act show that Treasury has recommended reviewing the Reserve Bank’s reliance on a single decision maker, the Reserve Bank Governor, to set the Official Cash Rate (OCR). The documents also confirm Green Party research that shows New Zealand is the only country in the OECD that puts one person in charge of setting the OCR.†

“No other country in the OECD gives full responsibility for the OCR decision to one person – the Reserve Bank Governor,” said Green Party Co-leader Dr Russel Norman.

“Following a recent internal critique of the Reserve Bank’s governance structure, Treasury has recommended to the Minister of Finance a review of the single decision-maker feature.

“A review of the Reserve Bank’s governance structure is well overdue. This is something I have argued for some time.

“OCR decisions have a significant impact on the New Zealand economy. Having the Governor as the single decision-maker increases the risk that decisions are weighted in a certain direction rather than taking a national perspective. 

“I have drafted non-controversial legislation that will introduce best practice at Reserve Bank by making the Reserve Bank Board as a whole accountable for setting the OCR, rather than the Governor alone.”

The draft legislation, in the form of an draft Member’s Bill, also requires the Board to publish its minutes within a fortnight of meeting. As part of the Green Party’s commitment to open and transparent government, Dr Norman has released another tranche of Reserve Bank Board minutes and papers obtained under the Official Information Act.

“My Bill will also require the Bank to release its Board meeting minutes within fourteen days, enhancing the Bank’s transparency and allowing for better public scrutiny of its decisions,” Dr Norman said.

“The UK, US, and Australian central banks all publish their minutes within a fortnight of meeting.

“The minutes detail important economic challenges that the Bank is attempting to address through their monetary policy settings.

“Increased transparency will result in stronger financial markets and a more resilient economy.”

Dr Norman has invited public feedback on his draft legislation.

Link to draft legislation

Link to report disclosing Treasury’s call for a review & Reserve Bank minutes

† The Reserve Bank cite Canada as also having a single decision-maker however the Bank of Canada also requires the Governing Council to come to a consensus on the OCR.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Whether We Should Be Betting Quite So Heavily On Astra Zeneca’s Covid Vaccine

According to this week’s Speech from the Throne, maintaining public safety during the pandemic will remain the government’s top priority. Next year will (hopefully) bring the rolling out of a free vaccination against Covid-19 to New Zealander. Currently, there are three possible vaccine contenders but the effectiveness of the vaccine will be only one of the factors determining which vaccine will pre-dominate. On the basis of the cost per dose, and the ease of manufacture, storage and distribution, the Astra Zeneca/Oxford University vaccine will almost certainly be the prime choice for New Zealand, at least initially... More>>


New Zealand Government: Speech From The Throne

It is my privilege to exercise the prerogative of Her Majesty the Queen and open the 53rd Parliament.
In the October election, New Zealanders elected a majority Government for the first time under our Mixed Member Proportional electoral system... More>>

Grant Robertson: Government To Review Housing Settings

New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus More>>


Law Commission: Recommends New DNA Laws For Criminal Investigations

Te Aka Matua o te Ture | Law Commission today released a report that recommends a new, comprehensive regime to control how DNA is obtained, used and retained for criminal investigations. The report has revealed significant gaps in the operation ... More>>


New Zealand Government: To Declare A Climate Emergency

The Government will declare a climate emergency next week, Climate Change Minister James Shaw said today. “We are in the midst of a climate crisis that will impact on nearly every aspect of our lives and the type of planet our children will inherit ... More>>


Economy: Crown Accounts Reflect Govt’s Careful Economic Management

The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance ... More>>


Green Party: Announce Portfolio Reshuffle With Talented And Energised Caucus Team

“The Green Party caucus offers a breadth of talent and energy to the Parliament this term. In ten MPs you have a small business owner, a human rights lawyer, an academic, a climate negotiator, a transport planner, and so much more”, Green Party ... More>>





InfoPages News Channels