Robertson ignored advice on Reserve Bank board

The Herald reports:

The opposition is unhappy Finance Minister Grant Robertson ignored their calls to enhance the expertise represented on the Reserve Bank’s (RBNZ) new board.

National Party Finance spokeswoman Nicola Willis and Act Party leader David Seymour in May raised concerns over the mix of people Robertson proposed be appointed to the board.

Emails they sent Robertson, who was obliged by law to “consult” them before recommending candidates for the Governor General to appoint, have been made public under the Official Information Act.

“The candidates you propose each have impressive records in their individual areas of expertise and have skills that would positively contribute to the board,” Willis told Robertson.

“However, based on the information you have provided to us, the candidates appear to have limited experience in central banking and prudential regulation and supervision. We believe these competencies are essential and could be under-represented on the proposed board.”

Seymour was more specific: “Your appointments to date look sensible, as do your proposals to appoint Byron Pepper and Hinerangi Raumati-Tu’ua.

“However, your other two appointments are dubious. Jeremy Banks and Rawinia Higgins (the latter in particular) appear to have no background whatsoever in economics, finance or banking.”

There are few boards more important than the Reserve Bank Board and it is a huge worry that appointments have been made of people with no experience in banking or even economics.