Reserve Bank Chairman Apologizes for Adrian Orr's Outburst Before Shock Resignation

In a rare and personal email, Reserve Bank chairman Neil Quigley has publicly apologized to a Treasury staff member for the behavior of Adrian Orr, the former Reserve Bank Governor, during a heated meeting two weeks prior to his unexpected resignation. The email, released following a request by The Herald, sheds light on the internal tensions that may have contributed to the abrupt departure of one of New Zealand's most influential economic figures.

A Moment of Tension

In the email dated February 20, Quigley wrote: “I am sorry Adrian lost his cool with you this afternoon. Your question was not surprising and [he] should have been able to give you a more dispassionate answer.” The Treasury adviser, who received the email, responded with gratitude, acknowledging the difficult nature of the situation and appreciating the open communication from Quigley.

Negotiations and Resignation

At the time of the meeting, the Reserve Bank was engaged in negotiations with the government over the amount of funding it would receive over the next five years. The Reserve Bank had initially requested $1 billion, but the government rejected the proposal. While the Reserve Bank board was willing to back down, Orr was not, and this disagreement reportedly played a role in his resignation, which was announced just a day before the bank was set to host an international conference.

A Controversial Exit

The email was released after The Herald inquired about an anonymous source’s claim that Orr had lost his temper during a meeting with Treasury staff and later with Finance Minister Nicola Willis on February 24. The source, who spoke to former Reserve Bank manager and blogger Michael Reddell, suggested that Orr may have been pressured into resigning.

Legal and Ethical Questions

Victoria University law professor Dean Knight has raised concerns about the Reserve Bank's refusal to disclose further details of the email exchange, stating that “Privacy or confidentiality obligations under employment law or exit agreements are not absolute reasons for withholding information.” Knight emphasized that public interest must be weighed against such confidentiality claims.

Minister Willis's Response

Finance Minister Nicola Willis has remained tight-lipped on the matter, stating that it was “a matter between Orr and the Reserve Bank board.” She also confirmed that she had only learned about the email Quigley sent to the Treasury adviser on Wednesday. When asked directly whether Orr had raised his voice during their February 24 meeting, Willis responded, “As I’ve said previously – not that I recall.”

Orr’s Post-Resignation

Since leaving the Reserve Bank, Adrian Orr has taken on a new role as a member of the Cook Islands National Superannuation Fund board. However, he has declined multiple requests for comment on the events leading to his resignation.

This incident has sparked a broader conversation about transparency, accountability, and the internal dynamics of New Zealand’s central bank. As the public seeks more clarity, the role of the Reserve Bank and its leadership in shaping the nation’s economic future remains under scrutiny.