Scott Simpson: Commerce Minister on the Government scrapping in-store card surcharges

The Commerce Minister says he's disappointed in businesses who say they will pass on the cost of surcharge scrapping.  

Most in-store surcharges on card payments will be banned, with the changes set to kick in next May.  

Scott Simpson says this is a win for consumers.  

He told Mike Hosking they've also taken action on the fees banks charge businesses.  

Simpson says those rates will be lower following regulation that will kick in at the end of the year.  

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
Right back to making stuff cheaper. So far this week
we've had more products in the building sector coming to market,
which is good. And now the fees associated with the
old tap and go to the card here excuse me card
transactions are generally being banned now. Scott Simpson is the
Commerce and Consumer Affairs Minister and he's in charge of
all of this needs with Uscott. Morning to you, morning Mike.
Are you disappointed in the reaction from all the people

(00:37):
going I'm just going to pass the cost on.

Speaker 3 (00:39):
Well you I am actually because I think that this
is a real wind for New Zealand consumers and actually
it's a win for New Zealand businesses as well. Making
things simple should be what is part of being a
customer being in business in New Zealand.

Speaker 2 (00:54):
This is a cost on business though, isn't it.

Speaker 3 (00:57):
Absolutely, But in the same way that wages, rent, insurance,
electricity are costs on businesses. My view is that the
price you see on the shelf should be the ice
you pay at the till.

Speaker 2 (01:09):
Now, why didn't you whack the banks, because.

Speaker 3 (01:13):
This relates to what is referred to as interchange fees,
and the ComCom Commerce Commission made some changes a week
or two ago. Now they are lowering the interchange rate
by regulation that'll come into effect in December, and then
we are announcing this ban on surcharges in conjunction with that.

(01:33):
So it's not directly related to the banks, but that's
something we're always looking at and will be front of
mind as we move forward on the legislation on this.

Speaker 2 (01:41):
So do explain it, because I think that part got missed.
I on Nicole a post cab yesterday tried to explain
it the best you could, but this is I think
most people have missed this news. So the interchange fees
that the Commerce Commission told the banks that they were
too high. Could you not have done more as a
government towards the banks as opposed to towards the dairy owner.

Speaker 3 (02:03):
Well, that's a matter for the Commerce Commission. It's the
Commerce Commission that regulates to change fees, so they'll be
watching very carefully this reaction as well, and I'm sure
that in the future, maybe sooner than we think, they
might have another look at it.

Speaker 2 (02:17):
Okay, So when you say sooner than they think you
know something's coming.

Speaker 3 (02:20):
Yes, well not necessarily, but the Communce Commission members they
read and take into account media and public response just
like you and I do.

Speaker 2 (02:28):
Okay, the looseness around fees at retail level. Is there
anything stopping this actually happening? I mean, good on you
for making the announcement. Yes, it should work, but I
mean if he wants to charge one percent or two
percent or through it, what's stopping them.

Speaker 3 (02:42):
Well, that's why we need some legislative change, and that's
why it's going to take a little bit longer than
I would want to implement this. It'll be probably sometime
before May of next year that these little stickers and
things are banned.

Speaker 2 (02:54):
Is that as fast as you can go? Because that
was the other supprise yesterday. I mean it's it's July
five and you're saying twenty six.

Speaker 3 (03:02):
I'd like to go faster, and the Prime Minister indicated
yesterday if we can go faster, we.

Speaker 2 (03:07):
Will, Okay, Well, good life, Well, that appreciate it. Scott Simpson,
who's the Commerce and Consumer Fairs minisin

Speaker 1 (03:12):
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