The Finance Minister is determined to ensure New Zealanders get access to more competitive banking services.
A Commerce Commission report on banking has found the sector isn't competitive enough - and the Government is looking to make some changes.
Nicola Willis says she doesn't want to threaten the banks, but she's hoping for better results for Kiwis.
"That means fairer prices, that means more innovative services, that means a better range of services. And what the Commerce Commission - and others - have said is that we lack robust competition in our banking sector."
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Episode Transcript
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Speaker 1 (00:00):
Right now though, it is time to get you across
what's happening with the Finance Minister. Nicola Willis is with
us live from Wellington. Minister, good evening, good evening, Ron,
Great to have you on the show. I want to start.
There's obviously a lot to talk to you about the
kiwibank changes, the ComCom report more generally, but let's start
with the poll for our listeners. The latest one News
Comma Brunton Pole has National steady on thirty seven percent,
(00:22):
Labor steady on twenty nine, Greens down two on ten,
the Maori Party to Party Maori is up three on
seven percent. What do you think, Deputy prime Minister, what
does this tell us about sentiment out there?
Speaker 2 (00:35):
Well, thanks for the promotion. I'm not the Deputy prime minister,
but i'll go taking me from you. Look, I think
that New Zealanders want to see the government focused on
the things that affect them and their families, which is
right now. It's the economy, it's jobs, it's incomes, it's
the cost of loving. It's also that they want to
see good education services, they want to see law and order, restored,
health services and yes there's been a significant debate about
(00:59):
the Treaty Principalle bill, And yes there are some voters
who have shifted, but ultimately, as you see, the lead
party and the government, the National Party is holding its vote.
Speaker 1 (01:09):
The taxpayer Union Caurier Pole, not so rosy for you.
You lost four point six points to the act Party. Yeah,
strategy seems to be working. Now he's stealing your votes.
Speaker 2 (01:21):
Well, looks as I say, there's a range of polls
out there. We don't try and pay too much attention
to any particular poll. We look at the trend over time,
of course, to be aware of what New Zealanders are
thinking and saying, we listen to them. And what I'm
hearing in the communities that I've been in is that
they want us really focused on the economy, on education,
(01:43):
on health, on making sure our police have the support
they need. And that's what we're focused on.
Speaker 1 (01:47):
With Kiwibank. You've gone for the option of potentially an
IPO down the track, but at the moment five hundred
million dollars lent needed from investors, your keep, we save
the funds, etc. Why not go the full IPO.
Speaker 2 (02:01):
For two reasons. One can we bank themselves have said
to us. We're not going to be ready for that
until around twenty twenty eight because they're in the midst
of a big digital transformation, an investment, and they think
that they'll be better placed for a public offering once
that is complete. Second reason is that we've said that's
not something we'll do in this term of government, but
(02:22):
it is something that could happen in a future government.
Speaker 1 (02:24):
Are you leaving is that a further threat to the
big banks?
Speaker 2 (02:29):
Well, I'm not interested in threatening the big banks.
Speaker 1 (02:33):
I'm interested it's been fair. That's exactly what you did today.
Speaker 2 (02:37):
Well, can I tell you what my end goal is here?
My end goal is I want more competitive banking services
for New Zealanders. That means fearer prices, that means a
more innovative services, that means a better range of services.
And what the Commerce Commission and others have said is
we lack robust competition in our banking sector, which means
(02:58):
that New Zealand bank uses missing out on some of
the benefits people over the Ditch get and people in
other countries around the world get. So what my end
goal is, let's make sure keywi Is get a fairer
deal and on the way through. Yep, that's going to
involve some disruption to the major banks, and I'm putting
it to them. They have every opportunity to do better,
(03:18):
so they can do that today, and I'm asking them
to do that.
Speaker 1 (03:23):
Yeah, I've heard you say, what exactly are you asking
them to do today?
Speaker 2 (03:27):
Well, the Comments Commission highlighted a few major areas that
they expect the industry to move in. One getting on
with open banking so that there can be a greater
range of financial services offered. Two making sure it's easier
for people to switch banks by improving that service that
currently exists but isn't as effective as it could be.
(03:48):
Three by making it easier for customers to compare home
loan offers. So that's just three examples from the Commerce
Commission reports. Those are all things the industry have expressed
to me they're keen to do. Well, I'm just saying, great,
get on with it.
Speaker 1 (04:01):
Okay, by when when will this be done? By?
Speaker 2 (04:03):
Well, we're watching closely. The Comments Commission is monitoring the activity.
And my message today was why not do it now?
Speaker 1 (04:10):
Well, good question. Let's talk about the latest OECD report
because this is this is from last week. But it's
it's painting a pretty bleak picture about the state of
our economy at the moment. With you know GDP zero
point six percent next year, though we're still only getting
to one point four, not getting to north of two
until twenty twenty six. Underlying momentum is weak. You know,
(04:31):
we're relying still on importing our migrants who are actually
turning their noses up at us now a little bit
in terms of inflows versus outflows. When when does the
National Party say, actually, this is we're taking accountability for
this now, Well.
Speaker 2 (04:50):
We are taking accountability for fixing the things we said
we would. We said step one, you've got to get
inflation under control. You've got to get interest rates coming down,
You've got to work to get your books back com balance.
We've been delivering progress on those fronts, and in fact
the OECD and their report endorse that and say, look,
you're doing the right thing by being more sensible about
the way that you're spending money. The next thing is
(05:12):
we have to move every lever we can to make
this a more productive economy that can grow faster. You're
seeing us do that and our education reforms focusing on
the basics and making sure that we've got those fast
track projects up and running so that they're not mired
in red tape, complexity and delay. By reducing regulation and
(05:32):
other areas of the economy, from the Building Act to
the Consumer and Credit Finance Act. You're seeing us consolidate
our overseas trade agreements with the new arrangements with the
United Arab Emirates and the GCC. We've got to keep
doing those things, and no one says any one of
those things will deliver a bigger growth number overnight, but
collectively you've got to keep pushing your foot down to
(05:55):
the medal. And this is a government that is.
Speaker 1 (05:58):
Your surplus is going to have to be laid again.
You've got the half early fiscal update next week and
you're widely I mean, I've spoken to you about this before.
You've basically said, without saying it, that you're going to
have to push a surplace out again to those further
on the right than you, and you've just lost four
and a half points to them who say, actually, you
should be going harder with the cuts, You should be
(06:18):
getting back to surplus when you promise to you'll just
labor light. What do you say, well, I just reject that.
Speaker 2 (06:25):
Now first budget we delivered twenty three billion dollars worth
of savings beyond what Labor had even contemplated. I do
have some bottom lines though. For me. I want to
ensure that we continue to deliver good frontline services, and yes,
that means more money for schools, more money for the police,
(06:46):
more money for the health system, and I don't apologize
for that. I also want to ensure we continue to
have a social safety net so that those who do
become unemployed can look to have some support, but also
that we expect them back into work and have services
to prompt that. So it is about striking the right balance. Ultimately,
I think the thing we can all agree on across
(07:07):
the political spectrum is if you want more choices about
jobs and comes and what you spend money on, you
need a wealthier economy. And that's why we're so focused
on rebuilding the economy so it grows faster and we
can have better choices and future budgets.
Speaker 1 (07:22):
Right just before you're hugging the center well and truly
there which I can't blame you, that's what your big
parties have got to do, Minister. Just before you go
the fairies. So is it tomorrow we get the announcement
on Wednesday?
Speaker 2 (07:35):
You will get an announcement this week.
Speaker 1 (07:37):
Oh we hang on Winston, it had to be by Wednesday.
So it has to be oither tomorrow or Wednesday, doesn't it.
Speaker 2 (07:43):
He did, and he's a man of his word.
Speaker 1 (07:45):
Okay. And will they have trains on them?
Speaker 2 (07:49):
Yes, they will be rail compatible. That has always been
a really important driver for the Cabinet that the connection
across the Cook Strait needs to be one that allows
freight to travel from from the North to South Island.
There are ryan a number of ways of achieving Yeah.
Speaker 1 (08:05):
So not necessarily the train's going on the ferry, but
just the freight from the trains going on the ferry
and then back on to rail.
Speaker 2 (08:12):
Look, there are going to be a range of questions
that I look forward to answering later this week. It's
going to be a big announcement and I think New
Zealanders will get confidence from that announcement that we've taken
prudent steps to secure safe, reliable ferry crossings into the future.
Speaker 1 (08:27):
Minister, Thank you very much for your time. Much appreciated.
Nicola Willis the Finance Ministers for more from Hither Duplessy
Alan Drive, Listen live to news talks it'd be from
four pm weekdays, or follow the podcast on iHeartRadio
Right now though, it is time to get you across
what's happening with the Finance Minister. Nicola Willis is with
us live from Wellington. Minister, good evening, good evening, Ron,
Great to have you on the show. I want to start.
There's obviously a lot to talk to you about the
kiwibank changes, the ComCom report more generally, but let's start
with the poll for our listeners. The latest one News
Comma Brunton Pole has National steady on thirty seven percent,
(00:22):
Labor steady on twenty nine, Greens down two on ten,
the Maori Party to Party Maori is up three on
seven percent. What do you think, Deputy prime Minister, what
does this tell us about sentiment out there?
Speaker 2 (00:35):
Well, thanks for the promotion. I'm not the Deputy prime minister,
but i'll go taking me from you. Look, I think
that New Zealanders want to see the government focused on
the things that affect them and their families, which is
right now. It's the economy, it's jobs, it's incomes, it's
the cost of loving. It's also that they want to
see good education services, they want to see law and order, restored,
health services and yes there's been a significant debate about
(00:59):
the Treaty Principalle bill, And yes there are some voters
who have shifted, but ultimately, as you see, the lead
party and the government, the National Party is holding its vote.
Speaker 1 (01:09):
The taxpayer Union Caurier Pole, not so rosy for you.
You lost four point six points to the act Party. Yeah,
strategy seems to be working. Now he's stealing your votes.
Speaker 2 (01:21):
Well, looks as I say, there's a range of polls
out there. We don't try and pay too much attention
to any particular poll. We look at the trend over time,
of course, to be aware of what New Zealanders are
thinking and saying, we listen to them. And what I'm
hearing in the communities that I've been in is that
they want us really focused on the economy, on education,
(01:43):
on health, on making sure our police have the support
they need. And that's what we're focused on.
Speaker 1 (01:47):
With Kiwibank. You've gone for the option of potentially an
IPO down the track, but at the moment five hundred
million dollars lent needed from investors, your keep, we save
the funds, etc. Why not go the full IPO.
Speaker 2 (02:01):
For two reasons. One can we bank themselves have said
to us. We're not going to be ready for that
until around twenty twenty eight because they're in the midst
of a big digital transformation, an investment, and they think
that they'll be better placed for a public offering once
that is complete. Second reason is that we've said that's
not something we'll do in this term of government, but
(02:22):
it is something that could happen in a future government.
Speaker 1 (02:24):
Are you leaving is that a further threat to the
big banks?
Speaker 2 (02:29):
Well, I'm not interested in threatening the big banks.
Speaker 1 (02:33):
I'm interested it's been fair. That's exactly what you did today.
Speaker 2 (02:37):
Well, can I tell you what my end goal is here?
My end goal is I want more competitive banking services
for New Zealanders. That means fearer prices, that means a
more innovative services, that means a better range of services.
And what the Commerce Commission and others have said is
we lack robust competition in our banking sector, which means
(02:58):
that New Zealand bank uses missing out on some of
the benefits people over the Ditch get and people in
other countries around the world get. So what my end
goal is, let's make sure keywi Is get a fairer
deal and on the way through. Yep, that's going to
involve some disruption to the major banks, and I'm putting
it to them. They have every opportunity to do better,
(03:18):
so they can do that today, and I'm asking them
to do that.
Speaker 1 (03:23):
Yeah, I've heard you say, what exactly are you asking
them to do today?
Speaker 2 (03:27):
Well, the Comments Commission highlighted a few major areas that
they expect the industry to move in. One getting on
with open banking so that there can be a greater
range of financial services offered. Two making sure it's easier
for people to switch banks by improving that service that
currently exists but isn't as effective as it could be.
(03:48):
Three by making it easier for customers to compare home
loan offers. So that's just three examples from the Commerce
Commission reports. Those are all things the industry have expressed
to me they're keen to do. Well, I'm just saying, great,
get on with it.
Speaker 1 (04:01):
Okay, by when when will this be done? By?
Speaker 2 (04:03):
Well, we're watching closely. The Comments Commission is monitoring the activity.
And my message today was why not do it now?
Speaker 1 (04:10):
Well, good question. Let's talk about the latest OECD report
because this is this is from last week. But it's
it's painting a pretty bleak picture about the state of
our economy at the moment. With you know GDP zero
point six percent next year, though we're still only getting
to one point four, not getting to north of two
until twenty twenty six. Underlying momentum is weak. You know,
(04:31):
we're relying still on importing our migrants who are actually
turning their noses up at us now a little bit
in terms of inflows versus outflows. When when does the
National Party say, actually, this is we're taking accountability for
this now, Well.
Speaker 2 (04:50):
We are taking accountability for fixing the things we said
we would. We said step one, you've got to get
inflation under control. You've got to get interest rates coming down,
You've got to work to get your books back com balance.
We've been delivering progress on those fronts, and in fact
the OECD and their report endorse that and say, look,
you're doing the right thing by being more sensible about
the way that you're spending money. The next thing is
(05:12):
we have to move every lever we can to make
this a more productive economy that can grow faster. You're
seeing us do that and our education reforms focusing on
the basics and making sure that we've got those fast
track projects up and running so that they're not mired
in red tape, complexity and delay. By reducing regulation and
(05:32):
other areas of the economy, from the Building Act to
the Consumer and Credit Finance Act. You're seeing us consolidate
our overseas trade agreements with the new arrangements with the
United Arab Emirates and the GCC. We've got to keep
doing those things, and no one says any one of
those things will deliver a bigger growth number overnight, but
collectively you've got to keep pushing your foot down to
(05:55):
the medal. And this is a government that is.
Speaker 1 (05:58):
Your surplus is going to have to be laid again.
You've got the half early fiscal update next week and
you're widely I mean, I've spoken to you about this before.
You've basically said, without saying it, that you're going to
have to push a surplace out again to those further
on the right than you, and you've just lost four
and a half points to them who say, actually, you
should be going harder with the cuts, You should be
(06:18):
getting back to surplus when you promise to you'll just
labor light. What do you say, well, I just reject that.
Speaker 2 (06:25):
Now first budget we delivered twenty three billion dollars worth
of savings beyond what Labor had even contemplated. I do
have some bottom lines though. For me. I want to
ensure that we continue to deliver good frontline services, and yes,
that means more money for schools, more money for the police,
(06:46):
more money for the health system, and I don't apologize
for that. I also want to ensure we continue to
have a social safety net so that those who do
become unemployed can look to have some support, but also
that we expect them back into work and have services
to prompt that. So it is about striking the right balance. Ultimately,
I think the thing we can all agree on across
(07:07):
the political spectrum is if you want more choices about
jobs and comes and what you spend money on, you
need a wealthier economy. And that's why we're so focused
on rebuilding the economy so it grows faster and we
can have better choices and future budgets.
Speaker 1 (07:22):
Right just before you're hugging the center well and truly
there which I can't blame you, that's what your big
parties have got to do, Minister. Just before you go
the fairies. So is it tomorrow we get the announcement
on Wednesday?
Speaker 2 (07:35):
You will get an announcement this week.
Speaker 1 (07:37):
Oh we hang on Winston, it had to be by Wednesday.
So it has to be oither tomorrow or Wednesday, doesn't it.
Speaker 2 (07:43):
He did, and he's a man of his word.
Speaker 1 (07:45):
Okay. And will they have trains on them?
Speaker 2 (07:49):
Yes, they will be rail compatible. That has always been
a really important driver for the Cabinet that the connection
across the Cook Strait needs to be one that allows
freight to travel from from the North to South Island.
There are ryan a number of ways of achieving Yeah.
Speaker 1 (08:05):
So not necessarily the train's going on the ferry, but
just the freight from the trains going on the ferry
and then back on to rail.
Speaker 2 (08:12):
Look, there are going to be a range of questions
that I look forward to answering later this week. It's
going to be a big announcement and I think New
Zealanders will get confidence from that announcement that we've taken
prudent steps to secure safe, reliable ferry crossings into the future.
Speaker 1 (08:27):
Minister, Thank you very much for your time. Much appreciated.
Nicola Willis the Finance Ministers for more from Hither Duplessy
Alan Drive, Listen live to news talks it'd be from
four pm weekdays, or follow the podcast on iHeartRadio
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