Greens celebrate tender of New Zealand's biggest banking contract

The Green Party is celebrating the Government’s decision to tender New Zealand’s biggest banking contract and is calling for a public interest test to be included in the tender process.

Finance Minister Bill English officially confirmed in the Finance and Expenditure Committee today that the tendering of the master banking contract is underway.

“New Zealand’s biggest banking contract has been a closed shop for 21 years. The Green Party was the first to highlight this lack of competition and now we’re asking that the Government consider adding a national interest test to the new tender process,” said Green Party Co-leader Dr Russel Norman.

“A competitive tender will now ensure the taxpayer is getting value for money from the Government’s banker.

“Ideally, our Government's banking should be done by our New Zealand bank, Kiwibank.

“The inclusion of a national interest test in the tender process will ensure that New Zealand banks like Kiwibank can get at least some of the Government contract in the short term.

Yesterday, during Parliament's Question Time, the Prime Minister told Dr Norman that Government Ministers would make the final decision on the Government's master banking contract after recommendations from the Ministry of Economic Development. This was different to what he told the media last week saying that Treasury would be responsible for making the final decision.

“Given that senior ministers will be making the final decision on the master banking contract, it’s important that they and their staff are not seen to be compromising their impartiality by accepting generous corporate hospitality from Westpac,” said Dr Norman.

“The bottom line is this: It’s not in New Zealand’s long-term interests to have 95% of our banking industry controlled by four foreign-owned banks that send a majority all their profits off-shore. It’s a major structural vulnerability in our economy.

“This Government needs to end its cosy relationship with Westpac and work harder to build up Kiwibank to the place where it can compete with the big four foreign-owned banks.”


Government’s banking contract with Westpac a closed shop for 21 years:
http://www.greens.org.nz/press-releases/government-s-banking-contract-westpac-closed-shop-21-years-0