Alliance Party Leader Victor Billot has condemned the Government’s renewed push toward the part-privatisation of Kiwibank.

Finance Minister Nicola Willis and State Owned Enterprises Minister Simeon Brown have been considering future capital-raising options, including a possible public listing or private-sector capital injection.

Mr Billot says the Alliance will fight any move to dilute public ownership of the bank.

“Kiwibank was established through the Alliance’s role in the Labour–Alliance Coalition Government to protect New Zealanders from the predatory profit-seeking of the overseas-owned banking system,” Mr Billot says.

“The Government is attempting to use manufactured fiscal constraints as an excuse to open up strategic public assets to private investors.”

Mr Billot says Kiwibank was never intended to be a vehicle for private profit but was designed to provide essential banking services for everyday New Zealanders and keep more of New Zealand’s banking profits in New Zealand.

“The Government should move its own banking business to Kiwibank,” Mr Billot says.

“Instead of looking to private investors for capital, the Government should allow Kiwibank to grow by using its own massive transaction volumes to strengthen the bank’s position.”

Mr Billot says the Alliance believes the state has an active responsibility to act as a direct provider and investor in essential economic infrastructure.

He says foreign investors already control a significant portion of New Zealand’s economy, with financial and insurance services making up a major share of foreign direct investment stock.

“A large part of the proceeds of New Zealanders’ work already leaves the country through interest, dividends and profits sent offshore,” Mr Billot says.

“The answer is not to further expose Kiwibank to the demands of private capital. The answer is to strengthen public ownership, public investment and democratic control.”

Mr Billot says fiscal sustainability should be pursued through economic sovereignty, equity and progressive taxation, not austerity or asset sales.

“Kiwibank belongs to the people of New Zealand, not the global market,” Mr Billot says.

“The Alliance remains committed to 100% public ownership and control of essential financial services like Kiwibank, so they operate in the public interest.”

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