The Finance Minister says a move to require wool carpets in state housing makes financial sense. 

Nicola Willis has announced a change to Kainga Ora's supplier agreement that will see it re-open its previously nylon-only carpet tender process. 

From the start of next month, all public entities will also be required to use woollen fibres where practical and appropriate. 

Willis told Mike Hosking officials have told her it makes sense for Kainga Ora to make this change. 

She says it's cost-neutral, and it performs well across a number of other dimensions. 

Nicola Willis says the Reserve Bank should never be exempt from cost-cutting across the public sector. 

Newly released documents show Adrian Orr's abrupt resignation as Governor came after he was denied the Budget allocation he was seeking. 

The Finance Minister says the central bank still has the funding it requires to do its statutory duties. 

She told Hosking the Reserve Bank can't operate as a "gilded palace" – it needs to be fiscally responsible, like all other government departments. 

Willis says any idea that the Reserve Bank doesn't need to abide by the same funding constraints as other Government agencies is wrong. 

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