2. Dr RUSSEL NORMAN (Co-Leader—Green) Link to this
to the Minister of Finance
Did he seek advice on any potential damage to Kiwibank’s brand and customer goodwill resulting from its possible privatisation, before he told a meeting of business people on Friday that he might consider a partial privatisation of Kiwibank?
Hon SIMON POWERHas the Government done any analysis of the cost of lost goodwill and damage to the business model of Kiwibank if it were privatised, in light of the fact that 700,000 New Zealanders signed up to Kiwibank on the basis that it is 100 percent New Zealand - owned; if so, what has that analysis shown?
Does he accept that Kiwibank’s brand is built on its ownership by the New Zealand public, and, further, that any suggestion that the bank may be privatised and inevitably sold to overseas owners is highly damaging to Kiwibank’s brand and value to the Government?
Kiwibank’s brand is built on a range of things, including some of the matters that the member raised in his question.
Chris TremainThe Government has continued the expansion of Kiwibank by allowing Kiwibank to retain all of its earnings for future expansion, and not requiring it to pay a dividend to the Government. Over the past 2 years, I am advised, this has allowed the bank to increase its equity base by over $100 million. As a result, Kiwibank’s lending has expanded by over $4 billion during this period.
Was it fiscally responsible for the Minister of Finance to make casual comments about privatising Kiwibank or partially privatising Kiwibank without first checking to see what damage such comments might cause?
Mr SPEAKERIn light of the potential damage to Kiwibank, will the Minister guarantee, in this House today, that the Government, however much longer it remains in power—whether or not it is the Government after the next election—will make no moves to privatise Kiwibank?