Kerre Woodham: Yesterday was a day to forget for the Government

There is much that this coalition government is dealing with that is not of their own making – they are mopping up, cleaning up the mess. Then there are the own goals that should not be happening 18 months into office – and I would argue that the announcement trumpeted yesterday afternoon is an example of an own goal.  

The Government is planning to ban merchants from adding surcharges to in-store card payments, a change they say that will save shoppers from the unwelcome surprise they get at the till. Go the Government for protecting the consumer!  

Well, no, hang on a minute. My first thought was well, surely the retailers will simply pass on the cost that they have to pay to the banks for the privilege of having debit cards, contactless payments, and credit cards. The bank charges them because the credit card companies charge them, the banks certainly aren't going to absorb it. The retailers say, well, if you want the privilege of contactless payment if you want the convenience of that, then you can pay the charge. But now they're going to have to absorb it.  

My second thought was now I'm going to be paying more. I don't Tap and Go. I very seldom Tap and Go. I've got a business account and a personal account, and when I pay for something, I'll insert my card, select the account, and pay that way. It’s supposed to make things easier for the accountant, and I avoid the surcharge. So when the retailers pass on the cost of the surcharge, anyone else who inserts and pins or swipes and pins will be paying too.  

Heather du Plessis-Allan covered most of my objections when I was listening to her interview with Scott Simpson last night. How can this possibly be trumpeted as a boon to consumers when all that happens is the price of goods will go up to cover the surcharge? Why not go after the credit card companies? And the banks?  

I could certainly understand charging a surcharge in the olden days when we had the zip zap credit card machines. There would undoubtedly have been a cost involved in processing all that paper. But now? Come on. Sure, there are costs in terms of fraud protection and there'd be other costs involved if you want to use your credit card and have that added protection, then you pay the surcharge. I don't see why the retailer should pay it, and I don't see why I should pay it when I'm not using that facility.  

Why didn't the Government go after the Ticketmasters, and the Air New Zealands, and the hotels of this world that charge processing fees and service fees, and “you've looked at our website so now we're going to charge you” fees. The Coalition Government did not cover themselves in glory yesterday with this announcement.  

And then there was the announcement of the announcement from Brooke van Velden around scaffolding safety requirements. That was another unwelcome reminder of Labour's modus operandi too. No, she was a day to forget for the Government yesterday.   

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
There is much that this coalition government is dealing with
that is not of their own making. They're mopping up,
cleaning up the mess. Then there are the own goals
that should not be happening eighteen months into office, and
I would argue that the announcement trumpeted yesterday afternoon is
an example of an own goal. The government is planning

(00:39):
to ban merchants from adding surcharges to instore card payments,
a change they say that will save shoppers from the
unwelcome surprise they get at the till go the government
for protecting the consumer. Well, no, hang on a minute.
My first thought was, well, surely the retailers will simply
pass on the cost that they have to pay to

(01:02):
the banks for the privilege of having debit cards, contactless
payments and credit cards. The bank charges them, because the
credit card companies charge them. The banks certainly aren't going
to absorb it. The retailers say, well, if you want
the privilege of contactless payment, if you want the convenience
of that, then you can pay the charge. But now

(01:30):
they're going to have to absorb it. My second thought was,
now I'm going to be paying more. I don't tap
and go. I very seldom tap and go. I've got
a business account and a personal account, and when I
pay for something, I'll insert my cards, select the account.
Does the payment need to come from business or personal?
And pay that way supposed to make things easier for

(01:54):
the accountant, and that I avoid the surcharge. But that's
not the main reason. I just that's the way I
do it. So when the retailers pass on the cost
of the surcharge, anyone else who inserts and pins or
swipes and pins will be paying too. Had the duplicyl
and covered off most of my objections. When I was
listening to her interview with Scott Simpson that she had

(02:16):
last night on the Drive Show, I'm like, yeah, what
she was saying, how can this possibly be trumpeted as
a boon to consumers when all that happens is the
price of goods will go up to cover the surcharge.
Why not go after the credit card companies and the banks.
I could certainly understand charging a surcharge in the olden days,

(02:37):
when we had the dupe credit card machines. You know,
I don't know how else you described them, lining the
triplicate form up on the Wii heavy unbalanced credit card
swipe machine that you put on your desk, and you'd
line up the paper and you'd ensure that your doot
doot was smooth and clean, so the details didn't come

(02:59):
up with mudgie. There would doubtedly have been a cost
involved in processing all that paper, But now come on,
I mean, sure there are costs in terms of fraud protection,
and there'd be other costs involved. And that's the protection
you get with a credit card. So if you want

(03:19):
to use your credit card and have that added protection,
then you pay the surcharge. I don't see why the
retailer should pay it, and I don't see why I
should pay it when I'm not using that facility. Why
didn't the government go after the ticketmasters and the year
in New Zealand's and the hotels of this world that
charge processing fees and service fees. And you've looked at

(03:40):
our website, so now we're going to charge you fees.
I mean, there's them to charge from the time you
start looking on the websites. Come on, Coalition Government did
not cover themselves in glory yesterday with this announcement. And
then there was the announcement of the announcement from Brook
van Walden around scaffolding safety requirements. That was another unwelcome
reminder of Labour's modus operandidote. No, she was a day

(04:04):
to forget for the government yesterday.

Speaker 1 (04:06):
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