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Aussie banks profits add to NZ account deficit

Aussie banks profits add to NZ account deficit

Current account figures announced today throws the spotlight on the behaviour of Australian owned banks operating in New Zealand says Finsec, the finance workers union.

An increase in profits earned by foreign-owned New Zealand companies was a key reason sited by Statistics New Zealand for an investment income deficit that contributed to an increased current account deficit of $14.2 billion.

“Australian owned banks have to start behaving in the economic interests of New Zealand. It is economically short sighted to not invest more profit in New Zealand,” said Finsec Campaigns Director Andrew Campbell.

“These figures support the urgent need for higher wages and greater investment in the New Zealand banking industry,” said Campbell.

“These figures show that our call for the banks to provide better wages, more staff and greater investment in customer service can no longer be dismissed as an issue for bank workers only. Failure to act is now a threat to our whole economy,” said Campbell.

“The four major Australian owned banks announced collective year end profits of well in excess of two billion dollars at the same time that our account deficit gets worse. It is clear that the banks must act now to improve this situation,” said
Campbell.

ENDS

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