Serious questions affecting taxpayer liability for banking investments are being raised as a result of government plans for the Public Trust Office, the ACT regional development spokesman, Owen Jennings revealed tonight.

“The announcement by the Public Trust’s chief executive, that the Trust is just waiting for government instructions to act on Jim Anderton’s plans to set up a goverrnment-owned bank, has enormous implications.

“One of the most worrying aspects is the potential liability for an under-performing or failing venture, as the Public Trustee acknowledged under scrutiny last year that its only access to capital was the government.

“There is also marketplace speculation that the Public Trust is being considered as a purchaser of New Zealand Permanent Trustees, one of only four other statutory trustee companies.

“Taxpayers must be given an assurance that such a move will not limit competition among trustee companies.

“ACT has written to The Minister of Finance seeking answers on the future of the Public Trust,” Owen Jennings said.

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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