Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Overseas bank profits increase need for Kiwibank

Record overseas bank profits increase pressure for Kiwibank

Record bank profits combined with rapidly rising bank fees make the need for a Kiwibank even more urgent, Alliance leader and Deputy Prime Minister Jim Anderton says.

He says the banks could reduce their fees by the same proportion as their fee incomes have increased and still make more money than they did last year.

A KPMG survey shows banks made profits of $1,600 million in New Zealand last year, up from $1,200 million the year before. That's an increase of 33%.

On Monday the ANZ Bank announced an after-tax operating profit of $139m in New Zealand for the year to march, up 20% on last year. Staff numbers in New Zealand were slashed from 4498 to 4053, while at the same time its fee income increased 15% from NZ$135 million to $156m.

"If the ANZ reduced its fees by 15% it would still make more money than it made last year," Jim Anderton said.

"Compared to New Zealand's rate of inflation and rate of economic growth, the banks are achieving staggering profits. It is clear that consumers need a publicly-owned New Zealand bank to provide some real competition."

"The fees go up while staff numbers and service are cut. The ordinary person is being taken to the cleaners. Banks are replacing interest income with income from bank fees.

"The people who are really hit are low and middle individual account holders. The more you have in your account the less the bank charges mean to you.

"As fees and profits rise, the New Zealand banking system is feeding overseas bank shareholders. New Zealand needs a publicly-owned Kiwibank to keep a share of the banking system in New Zealand and to ensure its profits are retained for New Zealanders," Jim Anderton said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Dealing Crackdown, Addiction Support: Government Action On Synthetics

The NZ Drug Foundation has welcomed the Government’s response to synthetic drug deaths. The response strikes a balance between giving law enforcement the tools they need to target criminal networks and changing drug law to make it easier for people to access help when they need it. More>>


Strategy Committee Unanimous: Wellington To Forge Ahead With Convention Centre

The three-storey Cable Street building, with around 18,000-square metres of floor space, will comfortably be able to host 1500 people for conventions. It includes a 1651sq m exhibition area that will attract international exhibitions too big for nearby Te Papa and provide an always-changing visitor attraction. More>>


Surveying The Surveillance: First IGIS Review Of Warrants Under New Act

The report sets out the Inspector-General’s interpretation of the new warrant provisions under the ISA and her expectations of the GCSB and NZSIS when they prepare warrant applications. More>>

SSC: 2018 Public Service Workforce Data Published

State Services Commissioner Peter Hughes has published the 2018 Our People, Public Service Workforce Data , which shows the Public Service is making significant progress in important areas. More>>


Sinking Cap: Auctions, Permanent Forests, Added To ETS

The move to auctions, signalled in an August consultation paper, will help put a cap on the number of emission units available over time. Annual announcements, looking forward five years, will help provide certainty for scheme participants, she said. More>>


Joint Select Committee Report: Achieving Smokefree 2025

In a historic first for select committees, the Māori Affairs Committee and the Health Committee presented their joint report on achieving the Smokefree 2025 goal to the House on Tuesday, 11 December 2018. More>>

"Shared Interests And Democratic Values": Peters To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. for talks with US Secretary of State Michael R. Pompeo and other senior members of the US Administration. More>>




InfoPages News Channels