Roderick Deane
Encyclopedia
Roderick Sheldon "Rod" Deane (born 1941 in Auckland) is a New Zealand economist, public sector reformer, and businessman. He has served as Deputy Governor of the Reserve Bank of New Zealand
, and as CEO and chairman of the country's largest telecommunications company, Telecom New Zealand
.
and went to New Plymouth Boys' High School
. He completed a Bachelor of Commerce degree with first-class honours in economics and a doctorate in economics at Victoria University of Wellington
in 1968. During his doctoral research, Deane began corresponding with future Reserve Bank Governor Don Brash
, forming a friendship that would continue throughout their careers.
, arguing for more economic liberalization and sounder economic policies, although Deane described his personal relationship with Muldoon as "cordial" and "civil". Twice Muldoon appointed a Governor to the Reserve Bank in preference to Deane.
Deane served as Alternate Executive Director of the International Monetary Fund
from 1974 to 1976. While at the Reserve Bank, Deane published numerous papers on monetary
, exchange-rate
, and fiscal policy
, as well as in the fields of international economics. He led a research-team which developed New Zealand's first macroeconometric model and published many papers in this area. He authored and edited a range of books on monetary policy and financial-sector matters, the external sector
and foreign investment. Deane later became the inaugural winner of the NZIER Qantas "Economist of the Year" Award.
, Deane led those elements within the Reserve Bank calling for a devaluation of the New Zealand dollar
. Speculation on international markets that the new New Zealand government would devalue the currency led to the Reserve Bank needing to defend the fixed currency in the markets, causing losses of hundreds of millions of dollars. The defeated Prime Minister, Muldoon, refused to devalue the currency; a constitutional crisis ensued, during which the incoming Government directed Muldoon to devalue. During the crisis, Deane took the unprecedented step of closing the New Zealand currency to international trading pending settlement of the dispute.
, effectively the head of New Zealand's public service
. Along with Minister of Finance Roger Douglas
, Deane served as the principal architect of state-sector
reform and corporatisation of New Zealand's State-Owned Enterprises. He also oversaw a range of other reforms to the public sector, including changes in the wage determination processes to liberalize these, the re-organization of the public service to reduce substantially the number of public servants and to improve the efficiency of many government departments, and changes designed to improve the clarity of objective
s and the enhancement of accountabilities
within the public sector.
In 1987 Deane became Chief Executive of New Zealand's then largest state-owned enterprise, the Electricity Corporation of New Zealand
(ECNZ) often known as Electricorp. Don Hunn
succeeded Deane as State Services Commissioner.
as New Zealand’s largest listed company, Deane became Chief Executive of the new entity. He held this role until his retirement on 1 October 1999, when he became the non-executive Chairman of Telecom. In the "Top 200 Corporate Awards", Deane became CEO of the Year in 1994, CEO of the Decade in 1999 and later Chairman of the Year.
Deane has also served as Chairman of ANZ National Bank from 1999 and for many years as a Director of the ANZ Banking Group in Melbourne
. He chaired the Board of the National Museum of New Zealand, Te Papa Tongarewa
from 2000, which encompasses what was previously the National Art Gallery. He formed the City Gallery Wellington
Foundation and functioned for many years was its Chairman. In 2006 Deane announced his resignation from these positions in order to provide time to pursue other interests which he had been developing for some years. In the case of Telecom, the decision to resign followed particularly the Government's decision to force Telecom to unbundle the local loop
, a decision with which he said he fundamentally disagreed.
in Sydney and Chairman of the New Zealand Seed Fund. He was Chairman of New Zealand's largest listed company, Fletcher Building
Limited from 2001 to 31 March 2010. He had earlier served as Chairman of the Fletcher Challenge
Group and oversaw a major restructuring of that Group in 1999-2000 to rationalize and improve its performance. This involved several commercial transactions which were the largest of their kind at that time. Deane also sits on the Advisory Board of Pacific Road Corporate Finance.
Deane and his wife Gillian have actively supported the arts as patrons for many years, and they currently serve as Joint Patrons of the IHC New Zealand
, the country's largest voluntary welfare organization. Deane occupied over many years senior positions in the IHC, including that of President, and oversaw a period of great change for people with an intellectual handicap, change enablinmg them to live more normal lives in the wider community. Closure of the country's special schools and psychopaedic institutions facilitated this process, which also involved young people moving into normal schools and IHC buying many hundreds of houses to provide an environment as close as possible to normal living for intellectually handicapped people in regular communities.
From 2000 to 2003 Deane held a personal Chair as Professor of Economics and Management at Victoria University of Wellington, which awarded him an honorary Doctorate of Laws.
Reserve Bank of New Zealand
The Reserve Bank of New Zealand is the central bank of New Zealand and is constituted under the Reserve Bank of New Zealand Act 1989. The Governor of the Reserve Bank is responsible for New Zealand's currency and operating monetary policy. The Bank's current Governor is Dr. Alan Bollard...
, and as CEO and chairman of the country's largest telecommunications company, Telecom New Zealand
Telecom New Zealand
Telecom New Zealand is a New Zealand-wide communications service provider , providing fixed line telephone services, a mobile network, an internet service provider , a major ICT provider to NZ businesses , and a wholesale network infrastructure provider to other NZ CSPs...
.
Education
Deane grew up in OpunakeOpunake
Opunake is a small town on the southwest coast of Taranaki in New Zealand's North Island. It is located 45 kilometres southwest of New Plymouth. Rahotu is 16 km to the northwest. Manaia is 29 km to the southeast. State Highway 45 passes through the town.The population was 1368 in the...
and went to New Plymouth Boys' High School
New Plymouth Boys' High School
New Plymouth Boys' High School is a single-sex boys' state secondary school in New Plymouth, Taranaki, New Zealand. It was founded in 1882 and celebrated its 125th Jubilee in 2007....
. He completed a Bachelor of Commerce degree with first-class honours in economics and a doctorate in economics at Victoria University of Wellington
Victoria University of Wellington
Victoria University of Wellington was established in 1897 by Act of Parliament, and was a former constituent college of the University of New Zealand. It is particularly well known for its programmes in law, the humanities, and some scientific disciplines, but offers a broad range of other courses...
in 1968. During his doctoral research, Deane began corresponding with future Reserve Bank Governor Don Brash
Don Brash
Donald "Don" Thomas Brash , a New Zealand politician, was Leader of the Opposition, parliamentary leader of the National Party from 28 October 2003 to 27 November 2006 and the leader of the ACT Party for 28th April 2011 - 26 November 2011...
, forming a friendship that would continue throughout their careers.
Reserve Bank career
Deane worked at the Reserve Bank of New Zealand, rapidly becoming Chief Economist, then Deputy Governor in 1982. During this period, Deane tended to clash with the Prime Minister and Finance Minister Robert MuldoonRobert Muldoon
Sir Robert David "Rob" Muldoon, GCMG, CH served as the 31st Prime Minister of New Zealand from 1975 to 1984, as leader of the governing National Party. Muldoon had been a prominent member of the National party and MP for the Tamaki electorate for some years prior to becoming leader of the party...
, arguing for more economic liberalization and sounder economic policies, although Deane described his personal relationship with Muldoon as "cordial" and "civil". Twice Muldoon appointed a Governor to the Reserve Bank in preference to Deane.
Deane served as Alternate Executive Director of the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
from 1974 to 1976. While at the Reserve Bank, Deane published numerous papers on monetary
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
, exchange-rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
, and fiscal policy
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
, as well as in the fields of international economics. He led a research-team which developed New Zealand's first macroeconometric model and published many papers in this area. He authored and edited a range of books on monetary policy and financial-sector matters, the external sector
External sector
The external sector refers to a basket of economic measures regarding any individual country. These measures include:*Balance of payments*Current account*Capital account or financial account*Foreign direct investment*Portfolio investment*Other investment...
and foreign investment. Deane later became the inaugural winner of the NZIER Qantas "Economist of the Year" Award.
Currency and constitutional crisis of 1984
In 1984, with the election of the Fourth Labour governmentFourth Labour Government of New Zealand
The Fourth Labour Government of New Zealand was the government of New Zealand from 26 July 1984 to 2 November 1990. It enacted major social and economic reforms, including reformation of the tax system. The economic reforms were known as Rogernomics after Finance Minister Roger Douglas...
, Deane led those elements within the Reserve Bank calling for a devaluation of the New Zealand dollar
New Zealand dollar
The New Zealand dollar is the currency of New Zealand. It also circulates in the Cook Islands , Niue, Tokelau, and the Pitcairn Islands. It is divided into 100 cents....
. Speculation on international markets that the new New Zealand government would devalue the currency led to the Reserve Bank needing to defend the fixed currency in the markets, causing losses of hundreds of millions of dollars. The defeated Prime Minister, Muldoon, refused to devalue the currency; a constitutional crisis ensued, during which the incoming Government directed Muldoon to devalue. During the crisis, Deane took the unprecedented step of closing the New Zealand currency to international trading pending settlement of the dispute.
State Services Commissioner
In 1986 Deane became Chairman of the State Services CommissionState Services Commission
The State Services Commission , formerly the Public Service Commission, is a central government agency within the New Zealand government. The current State Services Commissioner is Iain Rennie...
, effectively the head of New Zealand's public service
Civil service
The term civil service has two distinct meanings:* A branch of governmental service in which individuals are employed on the basis of professional merit as proven by competitive examinations....
. Along with Minister of Finance Roger Douglas
Roger Douglas
Sir Roger Owen Douglas , is a New Zealand politician who formerly served as a senior New Zealand Labour Party Cabinet minister. He became arguably best-known for his prominent role in the radical economic restructuring undertaken by the Fourth Labour Government during the 1980s...
, Deane served as the principal architect of state-sector
State sector organisations in New Zealand
Public sector organisations in New Zealand include the State sector plus the organisations of local government.Within the State sector lies the State services, and within this, lies the core Public service....
reform and corporatisation of New Zealand's State-Owned Enterprises. He also oversaw a range of other reforms to the public sector, including changes in the wage determination processes to liberalize these, the re-organization of the public service to reduce substantially the number of public servants and to improve the efficiency of many government departments, and changes designed to improve the clarity of objective
Goal
A goal is an objective, or a projected computation of affairs, that a person or a system plans or intends to achieve.Goal, GOAL or G.O.A.L may also refer to:Sport...
s and the enhancement of accountabilities
Accountability
Accountability is a concept in ethics and governance with several meanings. It is often used synonymously with such concepts as responsibility, answerability, blameworthiness, liability, and other terms associated with the expectation of account-giving...
within the public sector.
In 1987 Deane became Chief Executive of New Zealand's then largest state-owned enterprise, the Electricity Corporation of New Zealand
Electricity Corporation of New Zealand
The Electricity Corporation of New Zealand Ltd is a New Zealand state-owned enterprise formed on 1 April 1987, as a transition entity in the process of deregulating the New Zealand electricity market...
(ECNZ) often known as Electricorp. Don Hunn
Don Hunn
Donald Kent Hunn CNZM is a senior New Zealand diplomat and civil servant. Hunn is the son of Sir Jack Hunn, a former Secretary of Defence, Maori Affairs, and Justice.-Education:...
succeeded Deane as State Services Commissioner.
Telecom Chief Executive
In November 1992, following the privatization of TelecomTelecom New Zealand
Telecom New Zealand is a New Zealand-wide communications service provider , providing fixed line telephone services, a mobile network, an internet service provider , a major ICT provider to NZ businesses , and a wholesale network infrastructure provider to other NZ CSPs...
as New Zealand’s largest listed company, Deane became Chief Executive of the new entity. He held this role until his retirement on 1 October 1999, when he became the non-executive Chairman of Telecom. In the "Top 200 Corporate Awards", Deane became CEO of the Year in 1994, CEO of the Decade in 1999 and later Chairman of the Year.
Deane has also served as Chairman of ANZ National Bank from 1999 and for many years as a Director of the ANZ Banking Group in Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
. He chaired the Board of the National Museum of New Zealand, Te Papa Tongarewa
Museum of New Zealand Te Papa Tongarewa
The Museum of New Zealand Te Papa Tongarewa is the national museum and art gallery of New Zealand, located in Wellington. It is branded and commonly known as Te Papa and Our Place; "Te Papa Tongarewa" is broadly translatable as "the place of treasures of this land".The museum's principles...
from 2000, which encompasses what was previously the National Art Gallery. He formed the City Gallery Wellington
City Gallery Wellington
The City Gallery Wellington is an art gallery in Wellington, New Zealand. The gallery was first opened in 1980 in a different building.-Features:...
Foundation and functioned for many years was its Chairman. In 2006 Deane announced his resignation from these positions in order to provide time to pursue other interests which he had been developing for some years. In the case of Telecom, the decision to resign followed particularly the Government's decision to force Telecom to unbundle the local loop
Local loop unbundling
Local loop unbundling is the regulatory process of allowing multiple telecommunications operators to use connections from the telephone exchange to the customer's premises...
, a decision with which he said he fundamentally disagreed.
Retirement and voluntary activities
Deane remains a Director of Woolworths LtdWoolworths Limited
Woolworths Limited is a major Australian company with extensive retail interest throughout Australia and New Zealand. It is the:* largest retail company in Australia and New Zealand by market capitalisation and sales...
in Sydney and Chairman of the New Zealand Seed Fund. He was Chairman of New Zealand's largest listed company, Fletcher Building
Fletcher Building
Fletcher Building Limited is currently the largest listed company in New Zealand, having recently overtaken Telecom New Zealand, with a market capitalisation of over NZ$4.5 billion...
Limited from 2001 to 31 March 2010. He had earlier served as Chairman of the Fletcher Challenge
Fletcher Challenge
Fletcher Challenge is a now defunct multinational corporation from New Zealand, formed in 1981 by the merger of Fletcher Holdings, Challenge Corporation and Tasman Pulp and Paper...
Group and oversaw a major restructuring of that Group in 1999-2000 to rationalize and improve its performance. This involved several commercial transactions which were the largest of their kind at that time. Deane also sits on the Advisory Board of Pacific Road Corporate Finance.
Deane and his wife Gillian have actively supported the arts as patrons for many years, and they currently serve as Joint Patrons of the IHC New Zealand
IHC New Zealand
IHC New Zealand is a New Zealand non-governmental organization providing support and care for people of all ages with intellectual disabilities.The acronym stands for "Intellectually Handicapped Children"....
, the country's largest voluntary welfare organization. Deane occupied over many years senior positions in the IHC, including that of President, and oversaw a period of great change for people with an intellectual handicap, change enablinmg them to live more normal lives in the wider community. Closure of the country's special schools and psychopaedic institutions facilitated this process, which also involved young people moving into normal schools and IHC buying many hundreds of houses to provide an environment as close as possible to normal living for intellectually handicapped people in regular communities.
From 2000 to 2003 Deane held a personal Chair as Professor of Economics and Management at Victoria University of Wellington, which awarded him an honorary Doctorate of Laws.
External links
- independenteconomics.com Roderick Deane's website