Hugh Fletcher on Reserve Bank board

12.00

Hugh Fletcher, the former head of Fletcher Challenge, has been appointed as a non-executive director of the Reserve Bank and Rod Carr has been confirmed as acting governor for up to six months, the Government announced today.

Finance Minister Michael Cullen said Mr Fletcher's "considerable business experience would be an asset to the board".

Mr Fletcher was a critic of former bank governor Don Brash's tight approach to monetary policy.

Dr Brash shocked politicians and markets when he abruptly announced his retirement to run for the National party at the next general election.

Mr Fletcher was also head of an inquiry into telecommunications which recommended more regulation of the sector, with most of his ideas taken up by the Government.

Mr Fletcher holds a number of directorships, but was most well known as the chief executive of Fletcher Challenge, which he ran from 1987 until his retirement in 1997.

Dr Cullen also confirmed Dr Carr had been appointed on the recommendation of the bank's board to act as governor for up to six months or until a permanent appointment was made.

Dr Carr, the deputy chief executive at the bank, has been acting as governor since the resignation of Dr Brash on April 26.

Dr Cullen's spokeswoman said that according to the law, Dr Carr's initial appointment had to be renewed after 28 days. He inherited the same responsibilities and targets as his predecessor and would continue to answer to the board.

On the board, Mr Fletcher replaces Sir Gil Simpson, whose term expires on June 8.

Other non-executive directors are: Paul Baines, John Goulter, Arthur Grimes, Alison Paterson, Ruth Richardson and Bill Wilson.