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


Jim's Bank Will Profit More than Other Banks

Jim's Bank Will Profit More than Other Banks

Monday, August 13 2001
Rodney Hide Press Releases -- Economy

ACT Finance Spokesman Rodney Hide today released a Treasury document revealing the 'People's Bank' would profit from its customers even more than existing banks.

This document is in addition to the documents he released yesterday.

"Deputy Prime Minister Jim Anderton claimed his bank would drive down profits in the banking industry. He attacked other banks for charging too much.

"This previously secret document reveals the truth. The Treasury paper declares: '[NZ Post's] business case assumes profit and interest rate margins that exceed industry averages'.

"I can now see why Jim Anderton is so upset at the whistleblowers who are lifting the lid on his proposed profiteering.

"Jim's so-called 'People's Bank' based its case for a taxpayer subsidy of $80 million on profiting at a greater level than existing banks.

"And that's not the only revelation in this document. The proposal involves 'significant fees' according to the Treasury paper: just $22 a year less than its nearest main competitor for transaction accounts. The 'People's Bank' 'does not offer the public any significant gains in banking accessibility, with all but 9 of its 250 outlets expected to be situated within the catchment areas of branches of other banks'.

"These facts blow Jim Anderton's promises of a better deal and better access clean out of the water.

"The Treasury report details that 'Telephone Kiosks connected to customer service centres will be used in smaller outlets, enabling customers to deal with more complex matters over the telephone.'

"Until now, voters have never been informed that the 'People's Bank' would amount to little more than a telephone booth for many New Zealanders.

"The paper provides the ten-year financial projections for the 'People's Bank'. The base business case assumes over 1,200 new and profitable customers each and every week for three years. It's easy to see why NZ Post's own independent reviewers canned the 'People's Bank'. Cameron & Co declared that 'the numbers of customers attracted to [the 'People's Bank'] is likely to be lower-than-expected and the mix of customers is likely to be poorer'.

"The 'People's Bank' is a dog. It is sponging off taxpayer dollars for no benefit. It's well past the time when the Government and the NZ Post Board blew the whistle on full-time.

"The Treasury document was prepared in October last year for the Minister of Finance and the Minister of State Owned Enterprises last year. It can be found at (


For more information visit ACT online at or contact the ACT Parliamentary Office at

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Mayor of Auckland: Alert Level Change Welcome News

Mayor Phil Goff says the government’s decision to move Auckland to Level 2 from 6am on Sunday will be welcome news for all Aucklanders.
“Moving strongly and quickly to contain this outbreak has once again proved effective in stopping the spread of community transmission and I thank all the Aucklanders who have followed the rules of Level 3 over the past week,” he says... More>>


Earthquakes: Tsunami Activity – Cancelled

The National Advisory issued at 2:48pm following this morning's earthquakes near the KERMADEC ISLANDS REGION is cancelled.
The advice from GNS Science, based on ocean observations, is that the Beach and Marine threat has now passed for all areas... More>>

Joint Press Release: Dirty PR Exposed In Whale Oil Defamation Trial

Three public health advocates are relieved that their long-standing Whale Oil defamation trial against Cameron Slater, Carrick Graham, Katherine Rich and the Food and Grocery Council has finally concluded and they are pleased that the truth has come out... More>>


Government: Next Stage Of COVID-19 Support For Business And Workers

The Government has confirmed details of COVID-19 support for business and workers following the increased alert levels due to a resurgence of the virus over the weekend... More>>


Government: Balanced Economic Approach Reflected In Crown Accounts

New Zealand’s economic recovery has again been reflected in the Government’s books, which are in better shape than expected.
The Crown accounts for the seven months to the end of January 2021 were better than forecast in the Half Year Economic and Fiscal Update (HYEFU)... More>>

Covid-19: Auckland Back To Alert Level Three After One New Community Case Revealed

Auckland will move to alert level three for a week at 6am tomorrow morning after two new Covid-19 community cases announced this evening could not be directly linked to earlier cases, the Prime Minister has confirmed.
The rest of the country will move to level two.... More>>

NZ Initiative: New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now

If New Zealand politicians thought the housing crisis in 2020 was bad, the worst is yet to come, warns a new report by The New Zealand Initiative. In The Need to Build: The demographic drivers of housing demand , Research Assistant Leonard Hong ... More>>

Parliament: Kiwi MPs Among The “Most Educated In The World”

New analysis of MP qualifications reveals New Zealand’s Parliament is one of the most educated and highest qualified in the world, and significantly more educated than Australia’s. The research, by Mark Blackham of BlacklandPR and Geoffrey Miller ... More>>




InfoPages News Channels