11. RODNEY HIDE (Leader—ACT) Link to this
to the Minister of Finance
Will he be insisting that Westpac Banking Corporation advise their New Zealand customers what assets and liabilities will be backing their investments, before they are shifted across to the new company Westpac New Zealand Ltd, as a condition of him advising the making of an Order in Council, which states the new company’s assets and liabilities, as provided for by clause 6 of the Westpac New Zealand Bill; if not, why not?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Assuming the bill remains unchanged on its passage through the House, and of course I cannot pre-empt that, the answer is no. I am advised that that would not be necessary.
Does he think that is adequate disclosure, when essentially the 1.3 million customers of Westpac are to be shifted into a new company compulsorily, and only after they have been shifted will they discover what their financial assets and liabilities are, through his Order in Council?
Hon Dr MICHAEL CULLEN Link to this
The member is, I think, factually incorrect. What is happening here is the culmination of a policy under, certainly, successive Governors of the Reserve Bank in terms of local incorporation of Westpac. I am advised that the Reserve Bank will ensure that Westpac advises its customers of the transfer, and the disclosure statement for the new entity showing its likely balance sheet will be available to customers before the transfer occurs.
R Doug WoolertonCan the Minister tell us why it is important that Westpac New Zealand Ltd be registered as a bank in New Zealand?
Hon Dr MICHAEL CULLEN Link to this
It is important in terms of the general framework of prudential regulation, and, in fact, because Westpac was different from all the other Australian-owned banks in terms of the structure it had.