Kiwibank
Kiwibank will get downgraded if sold, says credit rating agency
27/05/10 18:13 Filed in: News Releases
Mums and Dads borrowing to buy their own home will pay more mortgage interest if the government doesn't stop talking about selling Kiwibank.
That's what Progressive Wigram MP Jim Anderton says will happen after confirmation from credit ratings agency Standard & Poors that it would downgrade Kiwibank if it is sold.
Standard & Poors said "the current ratings on Kiwibank are equalized with the bank's wholly government-owned parent New Zealand Post Ltd. ...The ratings on the bank get a significant uplift from the bank's stand-alone credit profile due to an unconditional and irrevocable guarantee from the parent. Consequently, any change in the bank's ownership--which would likely be accompanied by a dilution in the parent guarantee--would be a possible trigger for rating review."
Jim Anderton says this means that if Bill English and John Key don't rule out selling Kiwibank, it will be downgraded.
"A downgrade makes Kiwibank's cost of borrowing more expensive, which means Mums and Dads pay more to borrow to buy a home.
"The Government's asset sales program is the worst feature of this year's Budget, and it’s about to cost costing Kiwi families money.
“What is there about the almost universally negative publicity following Bill English’s speculative comments about the sale of Kiwibank that this government does not understand?” says Jim Anderton.
That's what Progressive Wigram MP Jim Anderton says will happen after confirmation from credit ratings agency Standard & Poors that it would downgrade Kiwibank if it is sold.
Standard & Poors said "the current ratings on Kiwibank are equalized with the bank's wholly government-owned parent New Zealand Post Ltd. ...The ratings on the bank get a significant uplift from the bank's stand-alone credit profile due to an unconditional and irrevocable guarantee from the parent. Consequently, any change in the bank's ownership--which would likely be accompanied by a dilution in the parent guarantee--would be a possible trigger for rating review."
Jim Anderton says this means that if Bill English and John Key don't rule out selling Kiwibank, it will be downgraded.
"A downgrade makes Kiwibank's cost of borrowing more expensive, which means Mums and Dads pay more to borrow to buy a home.
"The Government's asset sales program is the worst feature of this year's Budget, and it’s about to cost costing Kiwi families money.
“What is there about the almost universally negative publicity following Bill English’s speculative comments about the sale of Kiwibank that this government does not understand?” says Jim Anderton.
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Nats back to weasel words on Kiwibank
09/06/10 18:11 Filed in: News Releases
“Is Steven Joyce planning a leadership coup? Only days after John Key backed down and clarified that Kiwibank will never be sold while he’s Prime Minister, Steven Joyce announced this morning that if he’s going to sell it, he’ll tell you in time for the next election,” says Progressive Wigram MP Jim Anderton says.
“Who’s he going to tell? John Key or the country?”
John Key was forced to rule out a sale of Kiwibank on Friday after more than a week of confusion following finance minister Bill English’s post-budget comments that Kiwibank could be up for sale in time for the next election.
Steven Joyce went head to head with Labour’s Darren Hughes on Newstalk ZB’s Mike Hoskings breakfast show this morning.
When asked about Kiwibank he said that from his point of view “we’ve said we won’t change anything, and if we did we’d go to the country.”
“That might be his point of view, but it contradicts John Key’s latest point of view. Although if you take Mr Key’s ‘point of view’ from five days ago, then you’d have agreement between Mr Joyce’s point of view today and Mr Key’s point then. Of course Bill English has his own point of view. He wants to sell. Then there’s National MP Nathan Guy’s point of view - he signed a pledge that he would never support or initiate the sale of Kiwibank.”
“That’s a lot of points of view. Who should we be listening to now?” says Jim Anderton.
“One thing is crystal clear. The National party are not united on this issue. The ‘rat-pack’ want to sell, doesn’t matter what John Key says,” says Jim Anderton.
Steven Joyce also said when pushed further about Kiwibank “the reality is that nothing’s changed; we haven’t even asked for any work to be done, but if we do it’ll be in time for the next election.”
“Who can honestly believe John Key’s promise never to sell Kiwibank now?” says Jim Anderton.
“Who’s he going to tell? John Key or the country?”
John Key was forced to rule out a sale of Kiwibank on Friday after more than a week of confusion following finance minister Bill English’s post-budget comments that Kiwibank could be up for sale in time for the next election.
Steven Joyce went head to head with Labour’s Darren Hughes on Newstalk ZB’s Mike Hoskings breakfast show this morning.
When asked about Kiwibank he said that from his point of view “we’ve said we won’t change anything, and if we did we’d go to the country.”
“That might be his point of view, but it contradicts John Key’s latest point of view. Although if you take Mr Key’s ‘point of view’ from five days ago, then you’d have agreement between Mr Joyce’s point of view today and Mr Key’s point then. Of course Bill English has his own point of view. He wants to sell. Then there’s National MP Nathan Guy’s point of view - he signed a pledge that he would never support or initiate the sale of Kiwibank.”
“That’s a lot of points of view. Who should we be listening to now?” says Jim Anderton.
“One thing is crystal clear. The National party are not united on this issue. The ‘rat-pack’ want to sell, doesn’t matter what John Key says,” says Jim Anderton.
Steven Joyce also said when pushed further about Kiwibank “the reality is that nothing’s changed; we haven’t even asked for any work to be done, but if we do it’ll be in time for the next election.”
“Who can honestly believe John Key’s promise never to sell Kiwibank now?” says Jim Anderton.
Now NZ Post on the block
08/06/10 16:28 Filed in: News Releases
Desperation to sell something or anything is the only way to explain the prime ministers’ declaration that Kiwibank won’t be sold but NZ Post might be, Progressive Wigram MP Jim Anderton says.
“The Prime Minister is now once again saying Kiwibank won’t be sold while he is leader.
He has made that declaration before and then forgotten about it, so there is every reason to suspect he will go back on his word again. Plainly, his political commitments mean little to the prime minister.
“In making his statement about Kiwibank today, Mr Key announced on radio that it is ‘technically’ or ‘theoretically’ possible that NZ Post will be sold.
“That’s like being technically or theoretically pregnant. Either National is going to sell NZ Post or it isn’t.
“Mr Key is using sneaky language. He should simply say National won’t sell NZ Post. It does a good job in pubic ownership.
“Rural communities in particular will lose their services or they will cost more if John Key sells NZ Post.”
Jim Anderton is also asking whether the Reserve Bank and Treasury will correct the PM’s statement that Kiwibank has an implicit government guarantee.
“When I made a statement that politics would mean a government is unlikely to allow Kiwibank to fail, the Reserve Bank issued a statement clarifying that there is no government guarantee.
“The watchdog is applying a different standard to the prime minister by refusing to make the same clarification today,” Jim Anderton said.
“The Prime Minister is now once again saying Kiwibank won’t be sold while he is leader.
He has made that declaration before and then forgotten about it, so there is every reason to suspect he will go back on his word again. Plainly, his political commitments mean little to the prime minister.
“In making his statement about Kiwibank today, Mr Key announced on radio that it is ‘technically’ or ‘theoretically’ possible that NZ Post will be sold.
“That’s like being technically or theoretically pregnant. Either National is going to sell NZ Post or it isn’t.
“Mr Key is using sneaky language. He should simply say National won’t sell NZ Post. It does a good job in pubic ownership.
“Rural communities in particular will lose their services or they will cost more if John Key sells NZ Post.”
Jim Anderton is also asking whether the Reserve Bank and Treasury will correct the PM’s statement that Kiwibank has an implicit government guarantee.
“When I made a statement that politics would mean a government is unlikely to allow Kiwibank to fail, the Reserve Bank issued a statement clarifying that there is no government guarantee.
“The watchdog is applying a different standard to the prime minister by refusing to make the same clarification today,” Jim Anderton said.
Key Should Stop Playing Personal Politics And Come Clean On Kiwibank
04/06/10 03:40 Filed in: News Releases
If National wasn't going to sell Kiwibank they would have said so by
now, Progressive Wigram MP Jim Anderton says.
"The Government has been fudging assets sales for two weeks. If they
weren't going to sell Kiwibank, they would have said so by now and made
the story go away.
"Instead of coming clean on Kiwibank, the prime minister is now
resorting to personal abuse. For example, "Who cares what Jim Anderton
says?"
"First John Key indicated his promise before the election not to sell
Kiwibank 'ever' was worthless. Then he started playing silly semantic
games. Now he has reduced himself to the kind of petty personal
point-scoring games he claimed he would stand aside from in politics.
"John Key is behaving just like the kind of politician he said he would
never become.
"If he wants to sell Kiwibank, he should be straight with New
Zealanders. He should make his case for the sale on its merits, not on
petty personal politicking," Jim Anderton said.
now, Progressive Wigram MP Jim Anderton says.
"The Government has been fudging assets sales for two weeks. If they
weren't going to sell Kiwibank, they would have said so by now and made
the story go away.
"Instead of coming clean on Kiwibank, the prime minister is now
resorting to personal abuse. For example, "Who cares what Jim Anderton
says?"
"First John Key indicated his promise before the election not to sell
Kiwibank 'ever' was worthless. Then he started playing silly semantic
games. Now he has reduced himself to the kind of petty personal
point-scoring games he claimed he would stand aside from in politics.
"John Key is behaving just like the kind of politician he said he would
never become.
"If he wants to sell Kiwibank, he should be straight with New
Zealanders. He should make his case for the sale on its merits, not on
petty personal politicking," Jim Anderton said.
Japan PM resigns over broken promise - why not Key?
03/06/10 15:34 Filed in: News Releases
“The Japanese Prime Minister has just resigned over a broken pre-election campaign promise. But clearly breaking promises is a qualification for government in John Key’s world,” says Jim Anderton MP for Wigram and Progressive Party leader.
“Perhaps John Key is confusing the work ethics that drive the shady world of international speculation, with the moral demands of being in government.
“If you’re Prime Minister you say what you mean and keep your promises. That’s part of the job. If you’re not up to that, you resign. If it’s good enough for the Japanese Prime Minister, why not Mr Key?”
Japanese Prime Minister Yukio Hatoyama resigned yesterday after eight months in office after a broken campaign promise made before he was elected, to move a United States Marine base off the southern island of Okinawa.
“John Key has broken his promise not to sell Kiwibank ‘at any time in the future’ - ever. He’s now done a U-turn and says the promise not to sell - ever - is only good for the first term of his government.
“That means Kiwibank is only safe for another 12-18 months. Then the ‘for sale’ sign goes up.”
“John Key made a pledge to resign if he broke his promise not to touch superannuation.”
“When is a John Key promise not a promise? When it’s a promise not to put up GST or sell Kiwibank. This is the kind of political cynicism which has changed governments and electoral systems in New Zealand and will do so again.
“John Key should give New Zealanders a list of all the promises he’s made. Tell people now which ones he intends to keep, and which promises he intends to break,” says Jim Anderton.
“Perhaps John Key is confusing the work ethics that drive the shady world of international speculation, with the moral demands of being in government.
“If you’re Prime Minister you say what you mean and keep your promises. That’s part of the job. If you’re not up to that, you resign. If it’s good enough for the Japanese Prime Minister, why not Mr Key?”
Japanese Prime Minister Yukio Hatoyama resigned yesterday after eight months in office after a broken campaign promise made before he was elected, to move a United States Marine base off the southern island of Okinawa.
“John Key has broken his promise not to sell Kiwibank ‘at any time in the future’ - ever. He’s now done a U-turn and says the promise not to sell - ever - is only good for the first term of his government.
“That means Kiwibank is only safe for another 12-18 months. Then the ‘for sale’ sign goes up.”
“John Key made a pledge to resign if he broke his promise not to touch superannuation.”
“When is a John Key promise not a promise? When it’s a promise not to put up GST or sell Kiwibank. This is the kind of political cynicism which has changed governments and electoral systems in New Zealand and will do so again.
“John Key should give New Zealanders a list of all the promises he’s made. Tell people now which ones he intends to keep, and which promises he intends to break,” says Jim Anderton.
Nats cynical games over Kiwibank sale
03/06/10 15:33 Filed in: News Releases
“John Key is guilty of the worst kind of cynical politics. He changes his mind depending on where the votes are before the election, then reverts back to his original position once in government,” says Jim Anderton MP for Wigram and Progressive Party leader.
He did this with his broken promises not to sell Kiwibank. In 2008, MPs like Nathan Guy won marginal seats like Otaki by signing a pledge that the National Party would not sell Kiwibank,”
“On August 7 2008 before the election, John Key refused to sign a pledge not to sell Kiwibank. Then when he could see how unpopular that was, he changed his mind and promised multiple times not to sell Kiwibank - ever - if he was elected.
“The National party needed all the votes it could get in the marginal seats, like Otaki.
“That is presumably why Cabinet Minister and National Party MP Nathan Guy did sign the pledge on behalf of the National Party not to initiate a sale of Kiwibank, and he did it in front of hundreds of local people.
“I wonder how those people feel now?”
After he signed the pledge, Nathan Guy won the Otaki seat with a majority of 1354.
“Assuming half those people had decided not to vote for National once they knew that asset sales were going to be back on the agenda (less than 700 votes), those votes probably would have gone to the Labour candidate Darren Hughes. Mr Guy would then not have won that seat.
“John Key’s policy on asset sales changed during the election, and it helped get his government elected. Now the truth is coming out. John Key will sell Kiwibank if he wins another term in government.
“‘Ever - is a short word and a short time in John Key’s world.”
“This is the kind of cynical politics that brings governments down,” says Jim Anderton.
He did this with his broken promises not to sell Kiwibank. In 2008, MPs like Nathan Guy won marginal seats like Otaki by signing a pledge that the National Party would not sell Kiwibank,”
“On August 7 2008 before the election, John Key refused to sign a pledge not to sell Kiwibank. Then when he could see how unpopular that was, he changed his mind and promised multiple times not to sell Kiwibank - ever - if he was elected.
“The National party needed all the votes it could get in the marginal seats, like Otaki.
“That is presumably why Cabinet Minister and National Party MP Nathan Guy did sign the pledge on behalf of the National Party not to initiate a sale of Kiwibank, and he did it in front of hundreds of local people.
“I wonder how those people feel now?”
After he signed the pledge, Nathan Guy won the Otaki seat with a majority of 1354.
“Assuming half those people had decided not to vote for National once they knew that asset sales were going to be back on the agenda (less than 700 votes), those votes probably would have gone to the Labour candidate Darren Hughes. Mr Guy would then not have won that seat.
“John Key’s policy on asset sales changed during the election, and it helped get his government elected. Now the truth is coming out. John Key will sell Kiwibank if he wins another term in government.
“‘Ever - is a short word and a short time in John Key’s world.”
“This is the kind of cynical politics that brings governments down,” says Jim Anderton.
John Key promised not to sell Kiwibank 'ever'
02/06/10 16:17 Filed in: News Releases
John Key made a clear undertaking before the last general election, that there would never be a sale of Kiwibank, even if National won a further term in government, says Jim Anderton MP for Wigram and Progressive Party leader.
“Since the Budget, the government has said its promise not to sell Kiwibank was only good for its first term. But on several occasions before the election, John Key personally insisted that the promise was permanent.
The Dominion Post after TV3 leaders debate 4 November 2008
John Key answers readers’ questions in The Dominion Post 22 October 2008:
“You made a statement on television that your government if elected will not sell Kiwibank in its first term of office. Does that mean that you do intend selling Kiwibank eventually?” (Carol Aldridge, Porirua)
‘I am ruling out selling Kiwibank at any point in the future.’ John Key
The Dominion Post 4 November 2008, following TV3 leaders' debate – 5 days before the election:
“Mr Key said he would not sell Kiwibank - and when asked if that meant ‘ever’ responded: ‘No, I’ve ruled it out’.”
The Press 4 November 2008
“John Key ruled out National selling Kiwibank at any stage ‘never....we’ve ruled it out.’”
Jim Anderton says: “John Key’s current position on Kiwibank is a broken promise. If he had used the weasel words he is now using in answer to these questions during the election campaign, the issue would have turned into a major campaign fiasco for National. He said one thing to get elected and now he is saying something else. That is flat out untrustworthy.
“Shares in Kiwibank should not be floated because it’s doing a great job. It’s making money, and because we own it, those profits go straight back into the New Zealand economy. John Key needs to come clean and tell us - did he mislead the electorate or is this another policy U-turn?” says Jim Anderton.
“Since the Budget, the government has said its promise not to sell Kiwibank was only good for its first term. But on several occasions before the election, John Key personally insisted that the promise was permanent.
The Dominion Post after TV3 leaders debate 4 November 2008
John Key answers readers’ questions in The Dominion Post 22 October 2008:
“You made a statement on television that your government if elected will not sell Kiwibank in its first term of office. Does that mean that you do intend selling Kiwibank eventually?” (Carol Aldridge, Porirua)
‘I am ruling out selling Kiwibank at any point in the future.’ John Key
The Dominion Post 4 November 2008, following TV3 leaders' debate – 5 days before the election:
“Mr Key said he would not sell Kiwibank - and when asked if that meant ‘ever’ responded: ‘No, I’ve ruled it out’.”
The Press 4 November 2008
“John Key ruled out National selling Kiwibank at any stage ‘never....we’ve ruled it out.’”
Jim Anderton says: “John Key’s current position on Kiwibank is a broken promise. If he had used the weasel words he is now using in answer to these questions during the election campaign, the issue would have turned into a major campaign fiasco for National. He said one thing to get elected and now he is saying something else. That is flat out untrustworthy.
“Shares in Kiwibank should not be floated because it’s doing a great job. It’s making money, and because we own it, those profits go straight back into the New Zealand economy. John Key needs to come clean and tell us - did he mislead the electorate or is this another policy U-turn?” says Jim Anderton.
Telecom share decline is a lesson for privatising government
25/05/10 15:50 Filed in: News Releases
This week's considerable reduction in Telecom's worth is only the latest chapter in a privatisation that should be a lesson to the current government's plans to resume asset sales, Progressive leader Jim Anderton says.
"Today's decline in value is the direct result of a monopoly that got privatised being unable to adapt when its monopoly position finally began to unwind.
"Telecom spent about fifteen years dramatically overcharging New Zealanders and blocking innovative competition because it was privatised as a monopoly.
"Billions of dollars were taken out of New Zealand by foreign owners, at a time when a National Government was saying it was owned by Kiwi Mums and Dads.
"Since its monopoly position has been eroded, Telecom has faded because its monopolistic behaviour was hard-baked into the company and it couldn't adapt.
"Most financial commentators supported the sale of Telecom, but it has been a disaster for New Zealand.
"Today the same commentators are still supporting privatisation of successful Kiwi businesses, like Kiwibank.
"I recall consultant Rob Cameron telling the NZ Post Board that Kiwibank would only have ten thousand 'low value' customers after five years. It has between seven and eight hundred thousand and that shows how much credibility he has in calling for privatisation now. Professor Tripe from Massey University claimed Kiwibank would be a dog, and now says it needs $600 million of private capital because it is growing so fast.
"Instead of listening to people who repeatedly get their predictions wrong, the government should look at the record of privatisation: Telecom, Air New Zealand, Kiwi Rail. Disaster, disaster, and even more disaster."
"Today's decline in value is the direct result of a monopoly that got privatised being unable to adapt when its monopoly position finally began to unwind.
"Telecom spent about fifteen years dramatically overcharging New Zealanders and blocking innovative competition because it was privatised as a monopoly.
"Billions of dollars were taken out of New Zealand by foreign owners, at a time when a National Government was saying it was owned by Kiwi Mums and Dads.
"Since its monopoly position has been eroded, Telecom has faded because its monopolistic behaviour was hard-baked into the company and it couldn't adapt.
"Most financial commentators supported the sale of Telecom, but it has been a disaster for New Zealand.
"Today the same commentators are still supporting privatisation of successful Kiwi businesses, like Kiwibank.
"I recall consultant Rob Cameron telling the NZ Post Board that Kiwibank would only have ten thousand 'low value' customers after five years. It has between seven and eight hundred thousand and that shows how much credibility he has in calling for privatisation now. Professor Tripe from Massey University claimed Kiwibank would be a dog, and now says it needs $600 million of private capital because it is growing so fast.
"Instead of listening to people who repeatedly get their predictions wrong, the government should look at the record of privatisation: Telecom, Air New Zealand, Kiwi Rail. Disaster, disaster, and even more disaster."
National's threat to sell Kiwibank
21/05/10 16:18 Filed in: News Releases
National’s threat to sell Kiwibank is economic vandalism, says the MP who started the bank.
Jim Anderton says people worried about Australian banks buying Kiwi bank will immediately be concerned.
“That can only hurt Kiwibank, and therefore hurt the Kiwi Mums and Dads who already own it. It is reckless for a finance minister to deliberately undermine the value of a public asset.
“Kiwibank is a huge success, mainly because it’s ours. Selling the bank would push it straight into overseas hands. The buyers would be the Australian banks.
“Hundreds of thousands of New Zealanders signed up to Kiwibank because it’s ours. Since Kiwibank opened, the other banks have stopped closing branches and increasing fees. They’re feeling the heat. And that’s good for Kiwis.
“National repeatedly promised not to sell Kiwibank,” Jim Anderton said.
“Just this week I received a letter from a retired superannuitant on the Hibiscus Coast who has approached every commercial bank, all Australian owned, for a loan to buy a modest retirement residence for himself. They all refused, and the only bank that would lend him the money, and has now given him peace of mind for his retirement, was Kiwibank.”
Jim Anderton says people worried about Australian banks buying Kiwi bank will immediately be concerned.
“That can only hurt Kiwibank, and therefore hurt the Kiwi Mums and Dads who already own it. It is reckless for a finance minister to deliberately undermine the value of a public asset.
“Kiwibank is a huge success, mainly because it’s ours. Selling the bank would push it straight into overseas hands. The buyers would be the Australian banks.
“Hundreds of thousands of New Zealanders signed up to Kiwibank because it’s ours. Since Kiwibank opened, the other banks have stopped closing branches and increasing fees. They’re feeling the heat. And that’s good for Kiwis.
“National repeatedly promised not to sell Kiwibank,” Jim Anderton said.
“Just this week I received a letter from a retired superannuitant on the Hibiscus Coast who has approached every commercial bank, all Australian owned, for a loan to buy a modest retirement residence for himself. They all refused, and the only bank that would lend him the money, and has now given him peace of mind for his retirement, was Kiwibank.”
Kiwibank stays in Kiwi market - and makes a profit
19/02/10 16:08 Filed in: News Releases
Kiwibank has made a profit during the worst recession in decades by staying in the New Zealand market and refusing to gamble on overseas currencies like the big Australian banks, says MP for Wigram and Progressive Party leader Jim Anderton.
“This is a remarkable achievement, worth celebrating.”
Kiwibank announced today that it had made a profit of $23.5 million after tax for the six months ended December 31, 2009.
“It’s succeeded because it gets most of its deposits from, and does most of its lending in the New Zealand market,” says Jim Anderton.
“One of its strongest areas is its support for small and medium sized businesses in New Zealand.”
Kiwibank was the only bank to front up at last year’s Parliamentary Banking Inquiry. The inquiry established that the ‘big four’ Australian owned banks did not pass on all of the cut in the OCR (Official cash Rate) to home owners, credit card holders and businesses in New Zealand.
The inquiry also criticised the Australian owned banks for contributing to our volatile exchange rate. Exporters are particularly hurt by sudden and frequent changes in the exchange rate.
“In contrast to Kiwibank, the Australian banks borrowed a lot of money from overseas to fund their lending in New Zealand. This has a significant effect on our exchange rate by holding it up regardless of the real economic circumstances of New Zealand.
“The export sector, including farmers make up roughly 30% of our GDP - about $40 billion per year. But suffer the most from currency instability.
“I would like to see the government provide more capital funding for Kiwibank in order to promote more competition amongst banks and increase the share of local funding for lending.
“The Australian owned banks don’t have a vested interest in strengthening the New Zealand economy. Kiwibank does. It stayed in the New Zealand market, and today its success is our success too,” says Jim Anderton.
“This is a remarkable achievement, worth celebrating.”
Kiwibank announced today that it had made a profit of $23.5 million after tax for the six months ended December 31, 2009.
“It’s succeeded because it gets most of its deposits from, and does most of its lending in the New Zealand market,” says Jim Anderton.
“One of its strongest areas is its support for small and medium sized businesses in New Zealand.”
Kiwibank was the only bank to front up at last year’s Parliamentary Banking Inquiry. The inquiry established that the ‘big four’ Australian owned banks did not pass on all of the cut in the OCR (Official cash Rate) to home owners, credit card holders and businesses in New Zealand.
The inquiry also criticised the Australian owned banks for contributing to our volatile exchange rate. Exporters are particularly hurt by sudden and frequent changes in the exchange rate.
“In contrast to Kiwibank, the Australian banks borrowed a lot of money from overseas to fund their lending in New Zealand. This has a significant effect on our exchange rate by holding it up regardless of the real economic circumstances of New Zealand.
“The export sector, including farmers make up roughly 30% of our GDP - about $40 billion per year. But suffer the most from currency instability.
“I would like to see the government provide more capital funding for Kiwibank in order to promote more competition amongst banks and increase the share of local funding for lending.
“The Australian owned banks don’t have a vested interest in strengthening the New Zealand economy. Kiwibank does. It stayed in the New Zealand market, and today its success is our success too,” says Jim Anderton.
Kiwibank leads big banks back to local services
03/12/09 15:11 Filed in: News Releases
Westpac’s decision to return to boutique style branches in small communities so they can get closer to where customers live, demonstrates the impact Kiwibank has had on banking in New Zealand.
Jim Anderton was instrumental in setting up Kiwibank under a coalition agreement with Labour in 2001, at a time when the big Australian owned banks were abandoning rural and provincial New Zealand as well as local urban communities.
Westpac chief executive George Frazis now says that it was a mistake for his bank to abandon local branches in the 1990s.
Kiwibank reversed this trend by setting up regional branches and bank outlets so that local customers had access to bank services where ever they lived.
Westpac now plans to return to a local branch system. This is a welcome, if belated move from a bank customers viewpoint.
Today, Kiwibank has by far the biggest network of any bank in New Zealand, with more than three hundred branches (at least one hundred more than any other bank) and 650,000 customers. It operates in nearly forty communities where it is the only bank service available.
“We knew at the time that it was not only the right thing to do, but that it made business sense to keep banking services close to where people live,” says MP for Wigram and Progressive Party leader Jim Anderton.
“It’s taken Westpac more than ten years to realise this, but they deserve credit for reversing the failed policies of the 1990s, and returning to local banking.”
“It’s a shame that given this re-engagement with the public of New Zealand, Westpac didn’t show up at the Parliamentary Banking Inquiry recently. We would have welcomed their views. Kiwibank was the only bank that fronted.”
“It’s only a matter of time now before the other banks follow Kiwibank and return to local banking,” says Jim Anderton.
Jim Anderton was instrumental in setting up Kiwibank under a coalition agreement with Labour in 2001, at a time when the big Australian owned banks were abandoning rural and provincial New Zealand as well as local urban communities.
Westpac chief executive George Frazis now says that it was a mistake for his bank to abandon local branches in the 1990s.
Kiwibank reversed this trend by setting up regional branches and bank outlets so that local customers had access to bank services where ever they lived.
Westpac now plans to return to a local branch system. This is a welcome, if belated move from a bank customers viewpoint.
Today, Kiwibank has by far the biggest network of any bank in New Zealand, with more than three hundred branches (at least one hundred more than any other bank) and 650,000 customers. It operates in nearly forty communities where it is the only bank service available.
“We knew at the time that it was not only the right thing to do, but that it made business sense to keep banking services close to where people live,” says MP for Wigram and Progressive Party leader Jim Anderton.
“It’s taken Westpac more than ten years to realise this, but they deserve credit for reversing the failed policies of the 1990s, and returning to local banking.”
“It’s a shame that given this re-engagement with the public of New Zealand, Westpac didn’t show up at the Parliamentary Banking Inquiry recently. We would have welcomed their views. Kiwibank was the only bank that fronted.”
“It’s only a matter of time now before the other banks follow Kiwibank and return to local banking,” says Jim Anderton.
Who owns the ASB? Not us
29/10/09 16:22 Filed in: News Releases
The ASB has been an Australian owned bank for the last two decades, and it is misleading the public when it pretends to be a ‘Kiwi Bank’, says Progressive MP Jim Anderton.
The ABS is running promotional ads claiming ‘We’ve been a Kiwi Bank since 1847.”
“The truth is we don’t really know who owns the ASB. We know it is owned 100% by the Commonwealth Bank of Australia (CBA), but who owns the Commonwealth Bank?
“It used to be owned by the Federal Government of Australia but it was privatised in stages beginning in 1991.”
Almost half of the current owners of the Commonwealth Bank are ‘nominee’ companies. That means their identities are hidden behind other well-known companies, like the Hong Kong and Shanghai Banking Corporation (HSBC).
“We don’t really know who owns ASB. All we know for sure is that New Zealand doesn’t.”
In 1989, the ASB Bank Community Trust sold 75% of the shares to The Commonwealth Bank of Australia. In 2000 the CBA bought the remaining 25% of ASB shares from the Trust.
Since 2000 the ABS has been 100% owned by the Commonwealth Bank of Australia.
“We do however have a New Zealand owned banking network owned by all New Zealanders - and it’s called ‘Kiwibank’.”
“The Aussies are welcome to start their own ‘Aussiebank’ but they shouldn’t try to pinch ours,” says Jim Anderton.
The ABS is running promotional ads claiming ‘We’ve been a Kiwi Bank since 1847.”
“The truth is we don’t really know who owns the ASB. We know it is owned 100% by the Commonwealth Bank of Australia (CBA), but who owns the Commonwealth Bank?
“It used to be owned by the Federal Government of Australia but it was privatised in stages beginning in 1991.”
Almost half of the current owners of the Commonwealth Bank are ‘nominee’ companies. That means their identities are hidden behind other well-known companies, like the Hong Kong and Shanghai Banking Corporation (HSBC).
“We don’t really know who owns ASB. All we know for sure is that New Zealand doesn’t.”
In 1989, the ASB Bank Community Trust sold 75% of the shares to The Commonwealth Bank of Australia. In 2000 the CBA bought the remaining 25% of ASB shares from the Trust.
Since 2000 the ABS has been 100% owned by the Commonwealth Bank of Australia.
“We do however have a New Zealand owned banking network owned by all New Zealanders - and it’s called ‘Kiwibank’.”
“The Aussies are welcome to start their own ‘Aussiebank’ but they shouldn’t try to pinch ours,” says Jim Anderton.
Kiwibank continues to prove itself a winner
26/02/09 13:25 Filed in: News Releases
Ownership of Kiwibank is paying off in a big way, both for the people of New Zealand and for the government as its shareholder, Wigram’s Progressive MP Jim Anderton says.
“Combining its profit and its tax paid, Kiwibank is generating almost enough income for the government in one year to equal the $80 million it cost to set up.”
Kiwibank today declared an after-tax profit of $25.8 million for the last six months of last year. It also paid tax of $12 million.
“Kiwibank’s deposits are soaring because New Zealanders can see it offers a better deal than they would have if we didn’t have our own bank. Kiwibank has an AA- credit rating.
“And Kiwibank’s lending is soaring too, because it can offer lower interest rates.
“It’s great that we have our own bank performing so well at a time of international financial crisis. We don’t have to be dependent on overseas financial markets. Those markets right now look like the dog that critics claimed that Kiwibank would be.
“Kiwibank is, after only six years of operating, worth more than NZ Post. Its profitability is steadily rising. Kiwibank is continuing to prove itself a winner.”
“Combining its profit and its tax paid, Kiwibank is generating almost enough income for the government in one year to equal the $80 million it cost to set up.”
Kiwibank today declared an after-tax profit of $25.8 million for the last six months of last year. It also paid tax of $12 million.
“Kiwibank’s deposits are soaring because New Zealanders can see it offers a better deal than they would have if we didn’t have our own bank. Kiwibank has an AA- credit rating.
“And Kiwibank’s lending is soaring too, because it can offer lower interest rates.
“It’s great that we have our own bank performing so well at a time of international financial crisis. We don’t have to be dependent on overseas financial markets. Those markets right now look like the dog that critics claimed that Kiwibank would be.
“Kiwibank is, after only six years of operating, worth more than NZ Post. Its profitability is steadily rising. Kiwibank is continuing to prove itself a winner.”