Max Bradford
Opposition Economic Development Spokesperson
Sunday 23 April 2000

Jim's Bank built on shaky foundations

Jim Anderton's idea of a people's bank looks bankrupt before it gets off the ground, going by his answers to Parliamentary questions, Opposition Economic Development Spokesperson Max Bradford said today.

"It's obvious he is not consulting with any of the normal advisers to try to get the 'Jim's Bank' started.

"He's going around the country telling people the bank is well on the way to becoming reality. But he hasn't done the basic ground work.

"I have been asking Jim Anderton a series of questions and it's clear he has not asked for any advice whatsoever from the two key Government financial advisors on the matter, the Reserve Bank or the Treasury.

"The Reserve Bank is at the core of the operation of the New Zealand Banking system and is responsible for the integrity of the banking system. Treasury provides independent advice on costs and benefits of Government policy.

"Jim's building his bank on flaky foundations.

"For the rest of my questions, Mr Anderton is just stonewalling. He is either refusing to give away any information or - much more likely - he hasn't had the basic work done because he might not like the answers he would get.

"This is not good enough. Mr Anderton is proposing to spend upwards of $100 million of taxpayers' money on this proposal, and he is doing it without a skirmish of quality advice.

"He must front up. To help him get prepared I have attached to this release a list of the next set of parliamentary questions I have lodged."

Ends

Written Questions attached

Written Questions : asked by Hon Max Bradford 20 April 2000 What advice has s/he received, or sought, from the Reserve Bank about the need for the so-called "People's Bank"?

To: Prime Minister; Attorney-General; Minister of Finance; Associate Minister of Finance; Associate Minister of Economic Development; Parliamentary under-secretary to the Minister for Economic Development; Associate Minister of Maori Affairs (Economic Development);Minister of Commerce; Associate Minister of Commerce;

To : Minister of Consumer Affairs : "What advice has her department provided, or has she sought, on the need for the so-called "People's Bank"?

To :Minister for Economic Development :

"What departments, advisers, consultants, banks (including the Reserve Bank) have advised him that a so-called "People's Bank" is needed"?

"Has he sought advice from New Zealand on establishing the so-called "People's Bank" and if so, what was that advice?"

"What role will the Public Trust take in the so-called "People's Bank"

"Has the Minister sought advice from the Public Trust on establishing the so-called "People's Bank:" and if so, what was their advice?

"Has the Minister sought advice on the so-called "People's Bank" from any commercial banks, and if so, which banks and what was their advice?"

"Has the Minister sought advice on the so-called "People's Bank" from the New Zealand Bankers' Association and if not, why not?"

"What advice has he received and from whom, that the so-called "People's Bank" is needed?"

"Has the Minister sought advice on the so-called "People's Bank" from the Banking Ombudsman, if not, why not?"

"What advice has he received from the Banking Ombudsman about the need for a so-called "People's Bank"?"

"Will the so-called "People's Bank" ever be set up, and if so, when?"

"What advice has the State Services Commission given on the costs and impact of the so-called "People's Bank"?

"Why has the Minister not asked the Reserve Bank to report on the impact of the so-called "People's Bank"?"

"Why has the Minister not asked Treasury to report on the costs of the so-called "People's Bank"?"

"What departments have advised the Minister on the impact of setting up the so-called "People's Bank"?"

"What departments have advised the Minister on the costs of setting up the so-called "People's Bank"?"

"Has the Ministry of Economic Development been asked to report on the costs and impact of setting up his so-called "People's Bank" and if not, why not?"

"Has the Minister sought any outside advice from consultants, commercial firms, or individuals about the need for the so-called "People's Bank", and if so, who are they and what did their advice cost"

ENDS

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