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Westpac New Zealand Bill—Westpac Banking Corporation Asset Backing

Wednesday 19 July 2006 Hansard source (external site)

Hide2. RODNEY HIDE (Leader—ACT) Link to this
to the Member in charge of the Westpac New Zealand Bill

Is she proposing any amendments to the Westpac New Zealand Bill to advise New Zealand customers of Westpac what assets will be backing their deposits before her bill shifts them into the new company Westpac New Zealand Ltd; if not, why not?

HobbsHon MARIAN HOBBS (Member in charge of Westpac New Zealand Bill) Link to this

No. The amendments are in the hands of the Finance and Expenditure Committee.

HideRodney Hide Link to this

Does she think it is fair on the customers of Westpac to be compulsorily shifted into a new company without knowing what assets and liabilities will back their investments, particularly when the Government is being careful with its $750 million tax claim against Westpac, which will not be with the new company that is being set up?

HobbsHon MARIAN HOBBS Link to this

I have two responses. First of all, the vesting order process provides, I think, transparency for New Zealand customers. Second, I am slightly worried by the compliance costs that would be borne by the New Zealand customers of Westpac if his process were carried out.

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