Simon Bridges: Auckland Business Chamber CEO on alternative plan to the surcharge ban

The Auckland Business Chamber believes a a surcharge cap is a reasonable compromise to an otherwise unfair rule. 

In July, the Government announced its plan to ban surcharges for shoppers on methods like Paywave, forcing merchants to front the cost instead.  

The business chamber says this will just force businesses to increase costs, which will be unfair for other customers.  

CEO Simon Bridges told Ryan Bridge a cap will give a balanced and more practical alternative. 

He says retailers like hospitality and tourism can recuperate some of their costs. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Business groups have come up with a plan B for
the surcharge ban. They are proposing a cap, not a ban.
The surcharge on debit cards they say should bwo point
five percent, a cap on personal domestic credit cards one percent.
But will the government budge that's the question. Simon bridges
Auckland Business Chamber CEO Hey Simon, Hey morning, Ryan, good morning.

(00:20):
So why do you think a cap and not a ban?

Speaker 2 (00:24):
Well, our looks in the ends would be clear. We
don't like this bill. I think it's going to create
unintended mess and you know, actually the an important thing
there is basically every submitted to Parliament and there are
a lot didn't like it either. They saw it as
well intentioned but unfair, not transparent. So we s me
he's basically had a terrible choice. Either have to suck

(00:46):
up the costs and you know they're working on tin
margins that's bad, or they smear it on everyone and
that's very unfair and opaque as well. So you know
why this because I think actually in the end it's
a workable compromise. It deals with the concern and it's
a legitimate concern of excessive surcharges because you've got this
cap that's not very high. On the other side of it, though,

(01:07):
it does mean there's you know, the retailers, hospo, tourism,
these various businesses operating onto margins can recoup some of
their cost and that's fear as well. So you know,
I think potentially it's a it's a it's a win
win sweet spot for the government, for business.

Speaker 1 (01:25):
For consumers simon, if they go with the smear option. Like,
let's assume that the band goes ahead and businesses go
with the smere option. How much extra do we pay
in general prices? Do you reckon.

Speaker 2 (01:36):
Well, loos It's very hard to say, but I mean,
I think it would be inflationary. I think in the
end what happens is very messy. My sense of it is,
you know, you have a bunch of businesses say, you know,
we're going to try rehout, and the big ones they say,
we're going to try hard to sort of sort of
absorb this, and but then another others that will think,
we know, we are going to smear it, and they's say,

(01:56):
you think about that, if you're paying cash that's on fear,
you're paying more when you shouldn't have if you're paying
f poss that's unfair because you're paying more and you
shouldn't have all to deal with the issue of kind
of you know, the tap on tip tap off cards
and the credit cards. We're actually you know, the focus
I've always thought should be on banks and that the
payment providers, your visas and your master cards. We're making

(02:17):
a lot of money from this.

Speaker 1 (02:18):
Hey, I want to get your view on the RBI
and Z Yesterday they're saying there is a worry that
once the economy starts to pick up that businesses will
start hiking prices because you know, they've been holding off
because demand's been subdued, right, so you can't hike your prices.
And then as soon as we've got a bit of
money in our pockets they start hiking. That's inflationary. Do
you think that's going to happen.

Speaker 2 (02:39):
I don't know. I wouldn't. I wouldn't say it's the
biggest issue, and I wouldn't say it's going to be
like dramatically palpable and inflationary. I think in the end,
you know, I've had the view. I appreciate it. It's
pop PEPs a business and political view rather than a
strictly economic one that you've got to pick your poison.
You know, what would you rather have lower interest rates? Inflation?

(03:00):
I think in this economy, nine out of ten say
actually a little bit of inflation, albeit you know they've
got to try and work hard to keep it in
the band. I mean, I look at next year and
I am I think realistically optimist and thinks are going
to slowly but surely get better. But I think anyone
looking for the Devana in twenty twenty six is prehaps
misplaced because reality of it is, you know, you just

(03:22):
think about some of the facts going on. We've got
an election. Close elections mean people stop spending and making
investment decisions for a while. I think the stock market
looks like it's very high. You know, people say to me,
who know, it's basically recessionary in America other than the
stock market which is so big, So any correction there
I think makes a big difference. So, you know, for heaven,

(03:43):
maybe we've got to wait till twenty twenty seven.

Speaker 1 (03:45):
Simon always good to get view Simon Bridges All from
Chamber of CEO.

Speaker 2 (03:50):
For more from early edition with Ryan Bridge, listen live
to News Talks. It'd be from five am weekdays, or
follow the podcast on iHeartRadio