Govt forced Kiwibank move

The National Government’s failure to invest in Kiwibank has today forced Kiwibank’s owner New Zealand Post to take a step down the road to privatisation of the bank, the Green Party said.

“If National had injected capital into Kiwibank, to allow Kiwibank to expand like it should have years ago, we wouldn’t be looking at a possible future privatisation,” Green Party Co-leader James Shaw said.

“Bill English says he’ll buy the Kiwibank shares back if he has to in five years, but he won’t be Finance Minister then, so any promises he makes today are hollow.

“This deal makes it harder for the Government to use Kiwibank to drive competition in the banking sector, as the Green Party announced we’d do, because the Government can’t direct the Super and ACC funds in the way it could have directed Kiwibank.

“The fact is the Government forced Kiwibank’s hand and today’s announcement will make it easier than it was before to move Kiwibank into private ownership.

“In Government, the Green Party will ensure that Kiwibank remains in public ownership and will buy the shares back if ACC or the Super Fund wants to sell them.

“If Kiwibank ends up in private hands in the future, today’s announcement will be the start of that,” Mr Shaw said.

ENDS

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