Focussing on the things that matter – to the Aussie banks

Written By: - Date published: 9:24 pm, June 21st, 2009 - 12 comments
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What on earth is going on between the National Party and the banks?

The week before last Key and English were waxing hot on how the Australian-owned banks that dominate the New Zealand market were charging relatively high interest rates in New Zealand. The Reserve Bank also thought the differential between their rates and the overnight cash rate was too large. The same issue looms for borrowers in Australia. Craig Foss, Chair of the Finance Select Committee, supported by David Cunliffe from Labour, was calling for an enquiry into their interest margins.

Then last week Key and English suddenly went cold on the whole idea. What mattered now wasn’t whether small and medium businesses were being charged high interest rates, but “stability in the banking system”, whatever that may mean. It sounds like an implicit threat. It looks like the banks’ interest, to coin a phrase, is being put ahead of that of Kiwi borrowers by the National government leaders.

Rod Oram thinks we should all switch to Kiwibank. I agree, did so a few years ago from Westpac and have never regretted it.

The other strange phenomenon was a post by David Farrar at the time the National Australia bank-owned BNZ’s case against an Inland Revenue assessment for $466million for avoiding tax was being wound up in the High Court. The other Australian banks are up for the same amounts. Quoting “informed sources”, Farrar implied that National Party Ministers favoured Inland Revenue settling out of court for a quarter of the amount they had assessed as owing.

It now seems that only David Cunliffe wants to speak up for Kiwi borrowers.

12 comments on “Focussing on the things that matter – to the Aussie banks”

  1. Pascal's bookie 1

    You got to dance with them what brung you John.

  2. Craig Glen Eden 2

    Nationals sucking up to the Banks just confirms what the man in the Street has always known the National Party does not care about the every day Kiwi. Their interests are served by the corporates and others with money grabbing greed motives.
    The employee,self employed or small business people who actually work for their money don’t mean a thing to the National Party!

    The Banks should be forced to pay all they owe in taxes to the Government not a penny more not a penny less. My business has to pay its tax why cant they.
    The Banks are living with protection from the little guy via the Government and then they charge the little guy high interest rates.

    Nationals support for the Banks is an outrage.

    • doc Whose Asking 2.1

      Just taken note of your locality Craig and Nationals support for the Banks is an outrage. brought a smile.. 🙂

      Bcos it would likely also be the plural form of National’s support for Banks.. (bigger betta Mayor etc)..

  3. What can I say,

    Once a bankster always a bankster, that’s why they bought him the PMship.
    It’s a bit like the Mafia. No, let me correct that, the mob learned from the banksters.
    Next; the cashless grid and carbon tax straight to the banking elite and they’ve already robbed more than 200 years of major government spending in bailouts.

    How’s that change going for ya. LOL.

    • doc Whose Asking 3.1

      hi EV,

      have you gotten more on carbon tax.. for your banksters etc..

      not the way it due to work from what I’ve heard.. but then kiwis do have their own way of doing things.. and this one could be instructive..

  4. infused 4

    I’d switch to Kiwi Bank if it wasn’t so shit. It sucks for business. They fucked up my application form. The service was non-existent. Getting any sort of service with one worker on the desk was a joke.

    Thanks but no thanks.

    • Pat 4.1

      The rallying call to switch banks is not as simple as it seems. At present on the business and housing front, the Banks are not interested in refinancing business from other Banks. Their emphasis is on credit control and new home loans (20% deposit please).

      KiwiBank is the only bank gearing up it’s business bank teams, but like their home loans, they are very very fussy. Be prepared to be declined for nefarious reasons. I have known clients to be declined because in their opinion the applicant drank too much coffee (as evidenced by eftpos transactions on bank statements).

  5. It has just been reported that AFFCO and the ACC have settled a long standing claim relating to Joel Story’s care by agreeing to share the cost. The Tally’s well known National supporters own AFFCO.

    I thought the case was pretty straight forward. I wonder what the settlement terms were?

    Is this more evidence of the current government going easy on its corporate friends?

  6. Zaphod Beeblebrox 6

    At least they show a concern for the profits- unlike Lehmann Bros, Bank of Scotland, Bank of America and Citi Group.
    Seriously, they are doing what their shareholders want them to do. If Kiwibank, TSB, can do it better thats great too, hopefully the govt will support locally owned banks as well. I don’t think we can complain about the standard of banking in NZ just because they don’t give us the rates we want.
    If the govt wants to free up business lending they need to stop lending for property speculation and encourage more saving.

  7. Shona 7

    Just switched to Kiwibank now they have business banking. And yes it has been a learning curve for us both. The HAVE got people who are on to it and they can match most services offered by the major banks.They have more efficient ways of doing alot of things. I did have to forgo the relic of a personal cheque account tho’. The reduction in fees has been fabulous. The low interest on credit cards is magic.You have to be proactive. And make it work for you.They are introducing improvements all the time and not too far behind with what they offer.If the Post Office Savings Bank hadn’t been flogged off for a song in the 80’s all that banking expertise would not have been squandered. As an Alliance supporter I find all of this whining about the Banking ripp off in this country amusing. We told you so and were roundly pilloried for it .
    Being rejected because you drink too much coffee sounds like erroneous drivel to me Pat. But then most of what you have to say comes under that category.

  8. Pascal's bookie 8


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