Bank Survey Halves "Kiwibank's" Support

Monday 5 Nov 2001 Rodney Hide Press Releases -- Governance & Constitution

ACT Finance Spokesman Rodney Hide said today that the plummeting support for Jim Anderton's "Kiwibank" was devastating news for the government.

"The business base case that went to Cabinet had New Zealand Post believing it could attract 180,000 customers by year three. That is just on eleven percent of banking customers paying fees.

"Every piece of independent advice that the government sought said that such a switching rate was far too optimistic. The chief concerns were that switching would prove difficult for customers, that the savings weren't sufficient to prompt switching and that "Kiwibank" would suffer from too many low valued customers.

"Today's survey results produced by the annual University of Auckland Business School study show that only 19 percent of those surveyed would consider doing business with the new bank - down from 40 percent last year.

"This is a huge drop. The survey authors points out that only a quarter of those saying that they are considering switching ever actually do.

"One quarter of 19 percent is less than half the customers that the "Kiwibank's" base business case requires.

"The Bank's a dog and Michael Cullen should pull the plug before he wastes even more taxpayers' money than he already has," concluded Rodney Hide.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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