John MacDonald: What's your advice to the new Reserve Bank Governor?

What’s your message to the new Reserve Bank Governor?  

Dr Anna Breman is moving from Sweden to take up the job and will begin her five-year term at the start of December.  

I thought it was interesting to hear her say yesterday that one of the first things she plans to do is to travel around the country to meet and listen to people.  

She says she wants to meet people in regular households and students, to hear what they’ve got to say.   

What would you tell her? What do you think she needs to know?  

Back in March, when Adrian Orr quit, my advice to whoever eventually took over was to be the complete opposite of him.  

To make sure they stayed in their lane and kept themselves in check. Because when you’re the Reserve Bank governor, your job is to be part of creating a rock star economy – you’re not the rock star yourself. 

What I heard yesterday gives me confidence that Dr Breman is going to do exactly that. Keep the ego under control, but more importantly, actually listen to what’s going on.  

The fact that one of the first things she plans to do is go around the country and talk to people like you and me, I think that’s brilliant.  

But it can’t just be a one-off. She needs to be in Christchurch and Auckland pretty much all the time, as well as Wellington and other parts of the country. Because Auckland and Christchurch are the two powerhouses of New Zealand’s economy.   

If I had half an hour with Dr Breman, I’d tell her that she needs to get out of Wellington and talk to real people on a regular basis. To see what people are paying at the supermarket check-outs, to see what people are paying for power, and not just read about it in reports written by officials who can still afford to buy their coffees and lunches and nights out at the weekend.   

I suppose what I’m saying is that Dr Breman needs to be a Reserve Bank Governor of the people. That might be a tall order but that’s what I’d say. 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from News Talk ZB.

Speaker 2 (00:13):
But a question for you, what is your message to
the new Reserve Bank governor? What's your message? Doctor Arna
Bremen's appointment was announced yesterday. She's moving from Sweden to
take up the job. There was that story in Bloomberg
the day before suggesting that we might be having an

(00:35):
appointment from overseas, a female appointment from overseas. That's by
the bye. So she's moving from Sweden to take up
the job and she will begin her five year term
at the start of December, replacing Adrian Or, of course,
who spat the dummy earlier this year. I thought it
was interesting yesterday after she'd been announced as the next

(00:58):
governor or, the new governor, I thought it was interesting
to hear her say that one of the first things
she plans to do is to travel around the country
to meet and listen to people. She says she wants
to meet people and regular households. She wants to meet
students and she wants to hear what they've got to say.

(01:19):
And I want to know this morning what you think
the new governor needs to hear? What the new governor
needs to know, and what you would tell her if
she came around to your place for a chap, What
would you tell her? What do you think she needs
to know? You might remember back in March when Adrian

(01:42):
Or quit that my advice to whoever eventually took over.
This was my advice on what the day after he quit.
Whoever eventually takes over needs to be the complete opposite
of him. That's what I said. I said, just be
the complete opposite of Adrian Or because he fell into
the trap that ended up with him getting too big

(02:04):
for his boots, which may be it's hard to avoid
when you're in a job like that. But I said
back in March that the next person needs to make
sure they stay in their lane and keeps themselves in check.
I put it this way, and I mean, I think
it's worth repating. I said, when you're the Reserve Bank governor,
your job is to try and create or play a

(02:24):
part in creating a rock star economy. You're not the
rock star yourself. If only Adrian Orr had followed that advice,
and what I heard yesterday as she gives me confidence
that his replacement is going to do exactly that keep
the ego under control. But more importantly, and this is
the key thing for me, More importantly, actually listen to

(02:46):
what's going on. And the fact that one of the
first things she plans to do is to go around
the country and talk to people like you and me,
us average joes. I think that's brilliant, but it can't
just be a one off. She needs to be in
christ Church in Auckland pretty much all the time as
well as Wellington. Give her a desk here, give her

(03:06):
a desk in Auckland. She needs to be around the
country and Auckland and christ Church, particularly because they're the
two powerhouses of New Zealand's economy, aren't they. But even
though we live in an economic powerhouse, people here are
struggling and the governor needs to understand that. And what
I would say to doctor Breman if I had half

(03:27):
an hour with her, I'd say, look, this is great
that you're coming around wanting to hear what we've got
to say now, but you need to do it all
the time. You need to get out of Wellington and
talk to real people on a regular basis, if not
all the time, have a road show, Reserve Bank Governor's
road show. Whatever I'd tell her, I'd say, you need

(03:50):
to see what people are paying at the supermarket checkouts.
I'd tell her that you need to see what people
are paying for power, and not just read about it
in reports written by officials who can still afford to
buy their coffees and lunches and nights out at the weekend.
I'd say to the Governor, you need to see the
look on people's faces when they face these bills, and

(04:12):
you need to tell us what you've seen, what the
Reserve Bank's going to do about it, and what it
can realistically do about it within its powers. I suppose
what I'm saying is that I would tell Dr Breman
that she needs to be a Reserve Bank governor of
the people. Might be a tall order, but that's what

(04:33):
I would say to her.

Speaker 1 (04:35):
For more from Caterbory Mornings with John McDonald, listen live
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