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


Govt Must Protect NZers Against Oz Bank Collapses

Government Must Protect New Zealanders Against Australian Bank Collapses

Friday 6th Jul 2001 Stephen Franks Media Release -- Economy

The Government must move to protect New Zealanders from Australian bank collapses, ACT Commerce Spokesman Stephen Franks said today.

"The Deputy Governor of the Reserve Bank has told us the Bank is working on ways to better protect New Zealanders from catastrophe if one of its foreign-owned banks collapses. This is reassuring, thoughtful evidence that the Bank is not sitting on its laurels as one of the world's best and most innovative.

"But buried in the detail is the acknowledgement that we are heavily exposed to the potential for Australian ruthlessness in looking after Australian depositors before New Zealanders get a look-in, after the collapse of an Australian bank. Australia's Banking Act says Australian depositors must be paid first.

"Our Deputy Governor refers to such rules as 'predatory national regulatory practices', and notes that both USA and Australia have them.

"The risk of having to wait for crumbs after Australian depositors should be in large print across the front cover of every bank operating as a branch here in New Zealand.

"Now that the Government has got such a frosty relationship with Australia after reneging on our defence obligations, the risks can come out in the open.

"The Government should pass laws enabling us to freeze Australian assets in the event of an Australian bank collapse, until it is clear that New Zealand depositors would be treated fairly and on an equal footing with Australian depositors.

"There may be other ways of taking precautions but it is not acceptable that the New Zealand Reserve Bank should be without the weapons that will at least ensure they have to be invited to the negotiating table when a major trans-national bank failure is being sorted out.

"The Prime Minister's clumsiness and our own bad faith in defence and other arrangements meant we had to accept the cancellation of our old 'family' status for immigration purposes. The risks from the 'predatory regulations' of Australian banks has been known by government for long enough. Further delay in dealing with it is negligent," Stephen Franks said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news