Written By:
- Date published:
12:45 pm, September 1st, 2025 - 7 comments
Categories: national, nicola willis, RBNZ, uncategorized -
Tags: Adrian Orr, central bank, Cover up, Neil Quigley, scandal, University of Waikato
Opinion/analysis:
Part 1 of the series is here
Conservative Michael Reddell deserves credit for helping to uncover the Neil Quigley / Nicola Willis cover up scandal.
Here is the OIA response he received from Treasury on Orr’s last meeting with Treasury/RBNZ. I’ll highlight some key parts here:
“The Minister (Nicola Willis) noted private sector analysis suggesting New Zealand had amongst the most stringent capital requirements internationally and this would weigh on economic growth….
The Governer (Adrian Orr) noted that there was a significant amount of analysis that underpinned the capital review. The RBNZ considers New Zealand’s capital requirements to be in the middle of the pack internationally. He noted that Australia and New Zealand’s capital requirements were similar and Australia was moving closer to New Zealand’s approach in terms of the composition of bank capital. The Governer was confident in the cost-benefit analysis that showed there were positive net economic benefits from the policy settings…”
i.e. Adrian Orr firmly disagreed with Nicola Willis on capital requirements – well within his rights as the IndependentReserve Bank Governer.
However, University of Waikato VC & RBNZ Chair Quigley sounded much more acquiescent to Willis:
“The Chair (Quigley) responded that it was always intended that capital settings would be reviewed … He was open to bringing forward such a review”
Talk about undermining Adrian Orr!
Of note, within 3 weeks of Orr’s convenient departure from the bank, RBNZ then ‘brought forward’ such a “review of capital requirements amid political pressure”.
Bloomberg reported this in March:
The move comes three weeks after Finance Minister Nicola Willis said she wastaking advice on how to compel the RBNZ to loosen bank capital rules. Shortly before she made those comments, Adrian Orr, who championed the increase in capital buffers, quit as governor.
The review is “unrelated to Adrian Orr’s resignation,” RBNZ Board Chairman Neil Quigley told a parliamentary inquiry into banking competition today.
Asked why the bank was undertaking a review, he said the RBNZ “has been watching what’s been going on internationally with some softening of view about capital standards, and also listening to the commentary from people within New Zealand who’ve suggested that perhaps the full implementation of the capital standards is unduly conservative.”
Willis welcomed the review, saying submissions to the banking inquiry “have raised concerns that New Zealand’s bank capital regime is too conservative, and that this is undermining banking competition, driving up the cost of lending and reducing growth in the New Zealand economy.”
“I share these concerns,” she said. “The Reserve Bank’s decision to conduct a prompt review is a good opportunity to objectively assess New Zealand’s settings and consider whether the bank’s intention to keep increasing capital requirements still makes sense.”
i.e. the University of Waikato’s Vice Chancellor, Neil Quigley, seemed to again overlook that Orr had strongly pushed back against any capital requirements review/change, before Orr later agreed that subsequent events and the “lack of trust” between himself and the Board made things untenable for him.
And to me, at least, it’s looking like an all round hit job on Orr and even more importantly – our central bank’s independence.
And while Quigley told Shane Reti in 2023 that he had a “present to you (National Party) to start your second term in government!”
It appears the National Party had a big gift for Quigley too. A few months after the Orr news had settled down, National approved Quigley’s much desired, and ~$1m lobbying fee Waikato Medical School.
I believe this is called QUID PRO QUO – am I right – or not?
PS I wrote about the importance of safe capital requirements here.
The reason why central banks independence must be safeguarded in a functioning democracy and healthy economy is their core role is to safeguard the safety and stability of the financial system (and thereby protect citizens’ deposits and taxpayers money) – as well as honour their core mandate of inflation.
There’s a reason Trump is so desperate to get rid of Jerome Powell in the USA now, and take control of the Federal Reserve (central bank). The motivations are similar – cut interest rates, slash capital protections, undermine independence.
PPS The Treasury minutes also mention concerns about funding but in my opinion, it’s important to note the cadence and sequence which I believe would have resulted in Orr already feeling quite tense and set upon by the two senior authorities in the room (Willis and Quigley). i.e the capital review disagreement occurred first with Orr vs Willis/Quigley. And even after Orr left the meeting, Quigley once again appeared to support what Willis wanted regarding RBNZ’s funding – directly ignoring/undermining Orr.
I believe all these elements, combined with the performance management letter/actions of the Board, and the lack of trust between them, meant Orr’s position was now completely untenable and he saw no other choice but to resign.
Take a guess, friends.
I’d wager NZ Initiative (“NZI”) – a key lobby group for the banks, with strong links to Atlas Network and other right wing ‘junk tanks’.
See below how Willis’s language in the meeting effectively mirrors NZI language and lobbying positions (not for the first time too – the latest is when Andrew Riddell pointed out the same situation in Willis’s recent “supermarket fast track” announcement)
As reported previously on this publication, even conservative commentators1 have spoken of Willis (and Luxon’s) reliance on the lobby tank –
“Finance Minister Willis is lost, with no answers to the nation’s stagnation. It is why she has no plan. It is why she ran to Business NZ last week asking them what to do.
It is why she runs to the NZ Initiative asking them what to do….It is why they get no practical answers.”
And what happens if you speak up about NZ Initiative’s role in this government’s policy direction?
They write flattering, and if that doesn’t work, mocking letters to you – take a look at some of the examples here.
Excerpted article from Mountain Tui
Having forced the resignation of the CE, Chair, and Deputy Chair of tge RBNZ, this government has gone far further than President Trump undermining the US Federal Reserve Bank.
Willis could easily put a quick piece of legislation into the House under urgency to repeal the RBNZ's independence altogether and turn it back into a unit of Treasury.
Just another check and balance on government removed.
Thankfully the new poll shows the public are so desperate they see Labour would do a better job of dealing with inflation than National.
The thing with the right is that they'll try and smooze you into stepping over the line and then when the shit hits the fan they'll happily make you the fall guy. Waikato may have got their medical school but Quigley has seen his professional reputation crumble.
The government quashed a class action suit against ANZ and ASB by legislative intervention.
Now it wants to reduce the capital requirements of our largely foreign owned banks – which will increase their profits and reduce our economic security.
Little wonder our foreign owned banks want ex National Party CM's on their boards.
This becomes the prospect of a future pay off to current CM’s.
I understand that the current capital requirements are based on risk levels, and are similar to those in other countries. With our banks largely overseas owned, lowering capital requirements will benefit overseas owners, at greater risk to New Zealanders. The next 'assistance' they are likely to give the banks is the ability to keep the required capital in Australia – leaving it able to be used to protect Aussie banks in the event of a crash . . .
There is little to be found regarding his academic publications, but his links to the Right, and in particular Steven Joyce do seem clear.
https://newsroom.co.nz/2025/06/13/dont-you-know-who-neil-quigley-is/
So the claim that the fall out was over funding was another lie.
What most journalists or reporters seldom mention is their created 'think tanks' which lie fudge misdirect and cause interference for these creeps and sorted folk. (Mountain Tui now, and Nicky Hagar earlier have pulled back the curtain.)
Twisting any story to withhold favour excuse or outright mislead, telling us it is for us.
They are scam artists setting the scene to systematically rob us, taking from the Public Purse and putting funds in Private purses, all the while saying "we can't afford more for Health Education Public Housing or Transport, so we will get our Private friends to help… undermining the Public system by redirecting funds, and even cutting further.
They are also forcing a crash that devalues everything, saying "It's Labour's fault". They are making it easier for their cashed up mates to take over or buy up distressed businesses, while fast tracking and changing laws which protect us. Imagine we are the Chickens to be plucked by Vultures., being told it is for your good, it is medicine and you will get better, trust us.' Hence the term Vulture Capitalism.
Willis clashed with Orr, as he and the RBNZ were meant to be free from political interference, but that was tested when the Labour Government instructed the RBNZ to consider employment when adjusting settings as a Covid response. The National CoC removed that, and went further, wanting Orr to manage on a shoestring and remove the safety settings for Banks. They are desperate for houses to revalue to reassure the voting public.
I am heartened to see this play has exposed them again, and the costs they have moved from Government to others have seen such eyewatering cost of living rises even hardened National voters are askance.
The tide of Public opinion has turned. Grant Robertson really had their number, and the Unions recognised Luxon for what he was. "A change agent' put there by the big money.
Out in '26.
if not sooner.
It's important to understand the meaning of central bank independence. The Labour govt instruction to consider unemployment was completely within the independence framework where the finance minister sets the priorities for the RBNZ (considering unemployment is also in line with instructions for other central banks, including Australia). The economic goals are set by the govt, its the day to day which is somewhat independent, but the RBNZ never has carte blanch to just do its thing, its under instruction on what to do with monetary policy. It follows that the govt is responsible for what the RBNZ does. Willis can't claim the RBNZ should be helping the economy (housing market) with lower interest rates without being ready to answer to so why haven't you told them to lower interest rates then?