Former Reserve Bank Governor Adrian Orr and Finance Minister Nicola Willis. Photo: RNZ
Newly-released text messages show Treasury warned Finance Minister Nicola Willis that then-Reserve Bank Governor Adrian Orr was on his way out.
Willis revealed the existence of the text messages in Parliament on Tuesday, saying not including them in earlier OIA releases was appropriate.
The RBNZ has initially described Orr's abrupt exit in early March as a "personal decision", although the bank later revealed it had actually stemmed from a disagreement with the board around government funding.
Last month, the Ombudsman required the bank to release a timeline showing the board had also presented Orr with a letter of concerns before his resignation, but agreed to withdraw it when he quit.
Texts released today now show the Secretary to the Treasury Iain Rennie text Willis at around 5.30pm on 27 February.
"Understand RBNZ Board agreed to start employment process in respect of Governor. Expect to get some additional information tomorrow."
"Thank you for the heads up," Willis replied.
At around 9.30pm, Rennie texted Willis again.
"Spoke to Neil [Quigley, RBNZ chair] this evening. Governor has elected to go on leave until conclusion of process. He has to cob [close of business] Monday to respond to Board statement of concern on his conduct.
"Neil's current thinking is that you could receive recommendation later next week unless decision is taken to go down voluntary exit route. Neil [Quigley, RBNZ chair] has committed to let me know of any significant developments."
"Thanks for the update. I trust they have good legal advice," Willis responded.
Willis has maintained she has been transparent about the mismanagement of Orr's resignation, telling the House yesterday they related to an employment matter and releasing them risked her not receiving such information in future.
She said it was right for the texts to be released now, given the Reserve Bank had since released additional information after coming under pressure from the Ombudsman.
Willis has maintained that the first she knew of the reasons behind Orr's resignation was after the Ombudsman's ruling that outlined the concerns the RBNZ had raised with Orr, on 27 August.
The texts show she knew Orr's resignation was imminent, but did not seek more information about why until six months later.
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