The Prime Minister believes a major Commonwealth diplomatic summit does have a future, with certain priorities.
Christopher Luxon joined his Commonwealth counterparts for the Commonwealth Heads of Government Meeting, held this year in Samoa.
King Charles and Queen Camilla also attended.
Christopher Luxon told Mike Hosking it was a good opportunity to meet leaders from the Caribbean and Africa who he doesn't see as often and build some relationships with them.
He says it has to be focused back on development and democracy, building the capacity of public services in developing states, and getting rid of corruption.
When it comes to Kiwibank, the Prime Minister says it needs to be fired up as the maverick in the banking sector.
Treasury's advised ministers of three options to boost Kiwibank's capital to better compete with the Australian-owned banks.
They include borrowing money for Crown investment, third party investment, or an Initial Public Offering on the share market.
It comes after the Commerce Commission market study on personal banking.
Luxon told Hosking he hasn't seen the advice, so doesn't yet have a view on the best option.
He says one of the options is the stock exchange, and they could also seek Super Funds or other funds to invest.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Prime Minister is whether it's in the studio, very
good morning to you.
Speaker 2 (00:02):
What it might good to be with you.
Speaker 1 (00:03):
Did anything tangible come out of Choggham?
Speaker 2 (00:06):
Yeah, look, I mean it was the first chogg and
we're held on the Pacific apart from being in Australia
and New Zealand. Pretty interesting group actually fifty six countries,
most of them small island developing states. And really it
was the RPA Ocean's Declaration and one of the big
features of that was that actually recognizing the sovereignty of
the current eess that exists around these island nations and
if they deal with the future of sea rise and
(00:28):
we don't want those easy shrinking and so that actually
was quite a good win to put out there on
the record, I think, which was good, good outcome.
Speaker 1 (00:34):
What does that even mean? None of that made sense
to me. What it means is down on a piece
of plate, you got climate change about the ocean sign
chrys of a laccident.
Speaker 2 (00:41):
Now what it means is like, if you're a place
like Tavalu, which is in the next one hundred years
worst case scenario, probably ninety percent of the adol sort
of underwater, then actually its historic border is respected and
as a result, it's ez which has its opportunity for
fishing rights. Its economic zone around the islands is actually maintained.
It currently is today, not as it would be in
(01:02):
the future if the worst case happens.
Speaker 1 (01:03):
Okay, the slavery question that Kyostarmer was particularly exercised about,
did that go anywhere? Will it go anywhere? Do you think?
Speaker 2 (01:11):
Well? The key thing was to push it out of
Chogham frankly, because it's a peculiar UK Caribbean issue that
needs to be dealt with by them. In a conversation,
I think they plan to do a UK Caribbean dialogue
next year. But it was really pushed out of Chogham
so that the Brits and the Caribbean can deal with
it directly.
Speaker 1 (01:28):
Ok.
Speaker 2 (01:28):
Yeah, because really you want Chogham to be about democracy,
you want it to be about actual development. But for
me it was a good opportunity to meet you know,
leaders from Africa and the Caribbean who I don't get
a chance to see that much, but effectively could build some.
Speaker 1 (01:40):
Relationships to have a future.
Speaker 2 (01:42):
Yeah, I think it does. I think it has to
be focused back on development and democracy. You know, strengthen
against democratic institutions, building the capacity of public services, and
developing states getting rid of corruption. Those kinds of things
I think are important.
Speaker 1 (01:56):
Okay, So Shane Jones, he's been in Singapore. He comes
back this sort of surprise me that we haven't thought
about this or done anything about it before. So his
argument is they've got plenty of dough and they want
to invest in infrastructure good. They also want food security.
I'm assuming we can do something along those lines. Why
hasn't that been stitched up signed off?
Speaker 2 (02:12):
Well, it is actually so promised to Lee and promise
to Wong, and I've spoken about that. Where we're moving
through what we call in enhart strategic partnership, which is
building our relationship to Singapore to the next level. Next
year will be our sixtieth anniversary, and that's exactly right.
The Singaporeans are really concerned about food security, and I'm
really concerned about supply chain certainty. So if you think
about oil coming through Singapore coming into New Zealand, I
(02:35):
would want protection of that, and they'd want protection and more,
more and more security around their food. The other thing
is that every time I go off Sure, I spent
about two hours meeting with our groups of investors asking
for the good, the bad, and the ugly of investing
in New Zealand. And my big takeaway is that actually
the open to investing in New Zealand, they just don't
know what's here to invest in. I'm very open to
(02:55):
taking foreign direct investment into the country because we're the
lowest in the OECD. We've slipped to thirty eight out
of thirty eight and we need that to get knowledge
transfer into our companies, but also the capital that we
desperately need for public infrastructures.
Speaker 1 (03:08):
Reputationally, we're trouble. We had an investment guys, we're doing
this for thirty years on the prayer, he said. Reputationally
where we're not well looked well.
Speaker 2 (03:15):
I think the reality is I've looked at us in
recent years and said it's too slow to get anything
done in New Zealand. It's actually you don't welcome capital
like other countries. Do you say it's a privilege to
invest here versus thank you for coming and spending your
money and make the investment and just management manage our
risks versus Actually, these days they've got to say it's
a privilege to being here, now, let me justify why
(03:35):
my investment's going to be good for New Zealand, so
that the mindset's are wrong on the investment. And also
we haven't been a country that's been using this big
sovereign wealth funds pension funds for actually doing public infrastructure,
which is what we're doing with the National Infrastructure Agency
that we're creating. So all of those messages say, look,
I'm open to investing in New Zealand, but I just
don't know what's here, And I think, can you turn
(03:56):
that round?
Speaker 1 (03:56):
Yeah?
Speaker 2 (03:57):
I can, because I think what I have to do
is present a deal sheet essentially are the different assets
that we are up for investment from overseas, and then
make that very explicit to the investors and actually get
them down here to see them, to show them what's here.
Speaker 1 (04:10):
The other thing they said to or told me this
morning was once they get here, they look at the
CRL and go, cool, big hole in the ground that's
three times over budget and years like, how do we
fix that? Yeah?
Speaker 2 (04:21):
Well, I mean that's where the fast track and the
consenting stuff is really serious. I mean the consenting stuff
has doubled in time, and time is money. You know,
and also you know the laws. And I spoke to
a guy who wants to build a data center in
New Zealand and he said, Chris, I love your country.
He says, where I go, they make it easy for
me because they want a data center here. It's probably
(04:41):
half a billion dollars worth of investment. But he said,
I'm dealing with an Auckland Council volcanic cone view issue
by laurd. I don't know what that is. And I
said to mate, Yeah, that exactly underscores the point, which
is if you are a project of regional and or
national significance, which is where we started with the fast
tract to try and break the system, we try and
shrine next year with the full system. As you know,
(05:02):
we've got to be able to get through this stuff
and get thing.
Speaker 1 (05:05):
I'm very glad you're raised data centers because once they
arrive here and we do want to be a center
for data centers, how is it we're running them with power?
Speaker 2 (05:12):
Yeah, well that's a major challenge. No, as Sydney and
I think there's two data center projects there that they're
proposing to build in the next five years that will
take up one hundred percent of Sydney's electricity today. So
that's why you know we've got twenty two fast track
resource renewable energy projects in the Fast Track legislation. But that.
Speaker 1 (05:33):
Current electricity, I mean, we're not building what are we doing?
We're building windmills, are we building farms? Are we building
all of the above? All of the above? Why don't
we go nuclear?
Speaker 2 (05:41):
Well that's not something that we Well, we've got abundant
natural resources. We just haven't even tried to do what.
Speaker 1 (05:46):
We've Let me, let me give you the argument. So
you look at Google and Microsoft and Oracle. What are
they doing. They're doing deals three Mile Island, They're building
their own nuclear reactors. Why because you cannot rely on rain?
Speaker 2 (05:57):
Yep, no, I hear you. But I also know that
we've got abundant natural resources and we haven't done the
job that we should be able to do with the
resources that we've already got.
Speaker 1 (06:05):
So when it takes we can build enough wind mills
and enough solar panels, and enough dams. Yeah with gas,
with some gas to run any number of data center.
I think when we can't turn the lights on in
the middle of winter.
Speaker 2 (06:19):
Well that's but I just say to you That's why
we've got to properly go through. I mean, we're in
a perverse situation where it took us eight years to
consent to win farm, two years to build it. That
should be a one year consenting. We should get the
benefit within three years and then we can move on.
You know, that's one hundred and thirty thousand houses, you know,
the particular farm I was thinking about one hundred and
thirty thousand houses. Actually all the energy needs met through
off you know, through.
Speaker 1 (06:40):
Your argument and really simple terms. We can do it renewably. Yeah,
we're about nuclear. Nuclear is not on the table.
Speaker 2 (06:45):
We're never going to an ocular. But what we can
do is we do a hell of a better job
than what we've been doing. Because again, if you're sitting
in Singapore, you've got one hundred and ninety five countries
to invest that sovereign wealth superannuation money in. If you're
sitting in Korea or Japan with the other places, you know,
I've spoken them to as well. They've got so much money.
You know, I sat down in a meeting with five
Japanese bankers. You know, they immediately had like probably three
(07:07):
hundred and fifty billion dollars to invest just and a
lot of it they would love to send to this
part of the world. They just don't know what's here.
I met with the Katari Prime Minister for four hours
and just said he's got a Katari investment fund. We
would love their money. He said, it came through here.
You know, seven years ago, Sauce I couldn't find anything
to invest in. I said, we'll come back. You know,
let me let me get you the deal sheet of
what I think. You know, you might want to make investments,
(07:28):
make investments.
Speaker 1 (07:29):
What are you going to do with QI Bank?
Speaker 2 (07:31):
Look, I mean what we've said is, look, the banking
set does not competitive. The competition is not good because
consumers are paying for it with higher prices. We've now
got this inquiry going on through the Finance and Expendit
You Committee that will roll through, but we need kwe
Bank to actually be fired up as the maverick as
it's been talked about.
Speaker 1 (07:46):
You're you going to float it?
Speaker 2 (07:47):
Well, we're going to get a bunch of investment options
that Nicholas asked the Treasury to give her discussion.
Speaker 1 (07:52):
He's given you the options. One of the options is floating.
Speaker 2 (07:54):
Well, I haven't seen the advice yet to float it. Yeah, well,
one of the options could be to put some into
the New Zealand Stock Exchange, other ways in which she
could get super funds or other other funds to invest
in it as.
Speaker 1 (08:05):
Well, your favor.
Speaker 2 (08:06):
I don't have a view until I see that advice. Mike,
I know that's not the answer you want.
Speaker 1 (08:09):
Tell me no premature until here's my main point. My
point is keep we Bank tomorrow, so you sell it off.
Tell me materially how it changes the banking landscape of
this country.
Speaker 2 (08:19):
Well, I think a more capital growth into care We
Bank so that it actually can compete wrongers. It makes
them bigger, but also makes them be able to compete
very strongly for that business. I think there's other things
that we're going to need to do as well with
the banking. But let's get through some of this inquiry.
Speaker 1 (08:35):
Because I'm following this inquiry with a great deal of interest.
I listened to Antonio last week. She's fantastic, so she
who was a perfectly coach and argument I thought, I mean, yes,
they make a lot of money, but there are a
big bank so to the other four major banks. So
to keep if Keywi Bank was floated tomorrow, it would
become a bigger bank. There'd be five big banks. Yeah,
how does that fix anything? No?
Speaker 2 (08:55):
I just I think you know the reality is we've
got four We've got four cozy banks and a very
cozy relationship and no.
Speaker 1 (09:00):
One has shaken stop.
Speaker 2 (09:02):
Here's an example, open open banking for example, that's something that's.
Speaker 1 (09:06):
You have you read the documentation in Australia on open Yeah, yeah,
but it looks no different now.
Speaker 2 (09:09):
But the point is it's been left with the banks
to manage amongst themselves that open banking piece, rather than
actually that regulation coming from a different place. And I
think you know people, you know they don't move banks easily,
but actually if you made it much easier to do so,
you would. But when you leave it to the bank
to say it does not their interest to.
Speaker 1 (09:26):
Change, you've not convinced me that we've got some sort
of robber barons scenario in this country where everyone's getting
ripped off. I mean, and if you could, that's fantastic,
because I don't care. I just don't see what floating
selling doing anything to Kiwi Bank profoundly changes the marketplace.
Speaker 2 (09:43):
I think in a market like New Zealand, where you
end up defaulting to one or two players. Two players
or in this case four that actually anything that promotes.
There's actually fifteen retail there's actually eighteen banks and the
four majors. Yeah yeah, yeah, but they but they're not.
You know, we need to make sure they're capitalized in
a way that they can actually compete very strongly. And
I do think capital which capitalize they get out into
(10:04):
the rural sector. Do you think suddenly materially the escape
of the rural I think I think that's one of
the big observations. If you take rural banking for example.
You know, many of our farmers have been put under
huge amounts of pressure by their banks. They end up
having to run a much higher interest rates than we
do in the cities. The resonsequence because the risk, I
get it, But actually I think many of them would
(10:24):
want to change to someone who had actually bank them.
Speaker 1 (10:26):
Give me a timeline on when this is happening.
Speaker 2 (10:28):
Well, again, what we're getting is advice coming back from
Treasury about the options around Kiewi Bank and capital. I
think we'll have a conversation in cabinet as planned for
in the month of December.
Speaker 1 (10:36):
Okay, good to see Prime Minister Christopher Luxan for more
from the mic Asking Breakfast, listen live to news talks
they'd be from six am weekdays, or follow the podcast
on iHeartRadio
The Prime Minister is whether it's in the studio, very
good morning to you.
Speaker 2 (00:02):
What it might good to be with you.
Speaker 1 (00:03):
Did anything tangible come out of Choggham?
Speaker 2 (00:06):
Yeah, look, I mean it was the first chogg and
we're held on the Pacific apart from being in Australia
and New Zealand. Pretty interesting group actually fifty six countries,
most of them small island developing states. And really it
was the RPA Ocean's Declaration and one of the big
features of that was that actually recognizing the sovereignty of
the current eess that exists around these island nations and
if they deal with the future of sea rise and
(00:28):
we don't want those easy shrinking and so that actually
was quite a good win to put out there on
the record, I think, which was good, good outcome.
Speaker 1 (00:34):
What does that even mean? None of that made sense
to me. What it means is down on a piece
of plate, you got climate change about the ocean sign
chrys of a laccident.
Speaker 2 (00:41):
Now what it means is like, if you're a place
like Tavalu, which is in the next one hundred years
worst case scenario, probably ninety percent of the adol sort
of underwater, then actually its historic border is respected and
as a result, it's ez which has its opportunity for
fishing rights. Its economic zone around the islands is actually maintained.
It currently is today, not as it would be in
(01:02):
the future if the worst case happens.
Speaker 1 (01:03):
Okay, the slavery question that Kyostarmer was particularly exercised about,
did that go anywhere? Will it go anywhere? Do you think?
Speaker 2 (01:11):
Well? The key thing was to push it out of
Chogham frankly, because it's a peculiar UK Caribbean issue that
needs to be dealt with by them. In a conversation,
I think they plan to do a UK Caribbean dialogue
next year. But it was really pushed out of Chogham
so that the Brits and the Caribbean can deal with
it directly.
Speaker 1 (01:28):
Ok.
Speaker 2 (01:28):
Yeah, because really you want Chogham to be about democracy,
you want it to be about actual development. But for
me it was a good opportunity to meet you know,
leaders from Africa and the Caribbean who I don't get
a chance to see that much, but effectively could build some.
Speaker 1 (01:40):
Relationships to have a future.
Speaker 2 (01:42):
Yeah, I think it does. I think it has to
be focused back on development and democracy. You know, strengthen
against democratic institutions, building the capacity of public services, and
developing states getting rid of corruption. Those kinds of things
I think are important.
Speaker 1 (01:56):
Okay, So Shane Jones, he's been in Singapore. He comes
back this sort of surprise me that we haven't thought
about this or done anything about it before. So his
argument is they've got plenty of dough and they want
to invest in infrastructure good. They also want food security.
I'm assuming we can do something along those lines. Why
hasn't that been stitched up signed off?
Speaker 2 (02:12):
Well, it is actually so promised to Lee and promise
to Wong, and I've spoken about that. Where we're moving
through what we call in enhart strategic partnership, which is
building our relationship to Singapore to the next level. Next
year will be our sixtieth anniversary, and that's exactly right.
The Singaporeans are really concerned about food security, and I'm
really concerned about supply chain certainty. So if you think
about oil coming through Singapore coming into New Zealand, I
(02:35):
would want protection of that, and they'd want protection and more,
more and more security around their food. The other thing
is that every time I go off Sure, I spent
about two hours meeting with our groups of investors asking
for the good, the bad, and the ugly of investing
in New Zealand. And my big takeaway is that actually
the open to investing in New Zealand, they just don't
know what's here to invest in. I'm very open to
(02:55):
taking foreign direct investment into the country because we're the
lowest in the OECD. We've slipped to thirty eight out
of thirty eight and we need that to get knowledge
transfer into our companies, but also the capital that we
desperately need for public infrastructures.
Speaker 1 (03:08):
Reputationally, we're trouble. We had an investment guys, we're doing
this for thirty years on the prayer, he said. Reputationally
where we're not well looked well.
Speaker 2 (03:15):
I think the reality is I've looked at us in
recent years and said it's too slow to get anything
done in New Zealand. It's actually you don't welcome capital
like other countries. Do you say it's a privilege to
invest here versus thank you for coming and spending your
money and make the investment and just management manage our
risks versus Actually, these days they've got to say it's
a privilege to being here, now, let me justify why
(03:35):
my investment's going to be good for New Zealand, so
that the mindset's are wrong on the investment. And also
we haven't been a country that's been using this big
sovereign wealth funds pension funds for actually doing public infrastructure,
which is what we're doing with the National Infrastructure Agency
that we're creating. So all of those messages say, look,
I'm open to investing in New Zealand, but I just
don't know what's here, And I think, can you turn
(03:56):
that round?
Speaker 1 (03:56):
Yeah?
Speaker 2 (03:57):
I can, because I think what I have to do
is present a deal sheet essentially are the different assets
that we are up for investment from overseas, and then
make that very explicit to the investors and actually get
them down here to see them, to show them what's here.
Speaker 1 (04:10):
The other thing they said to or told me this
morning was once they get here, they look at the
CRL and go, cool, big hole in the ground that's
three times over budget and years like, how do we
fix that? Yeah?
Speaker 2 (04:21):
Well, I mean that's where the fast track and the
consenting stuff is really serious. I mean the consenting stuff
has doubled in time, and time is money. You know,
and also you know the laws. And I spoke to
a guy who wants to build a data center in
New Zealand and he said, Chris, I love your country.
He says, where I go, they make it easy for
me because they want a data center here. It's probably
(04:41):
half a billion dollars worth of investment. But he said,
I'm dealing with an Auckland Council volcanic cone view issue
by laurd. I don't know what that is. And I
said to mate, Yeah, that exactly underscores the point, which
is if you are a project of regional and or
national significance, which is where we started with the fast
tract to try and break the system, we try and
shrine next year with the full system. As you know,
(05:02):
we've got to be able to get through this stuff
and get thing.
Speaker 1 (05:05):
I'm very glad you're raised data centers because once they
arrive here and we do want to be a center
for data centers, how is it we're running them with power?
Speaker 2 (05:12):
Yeah, well that's a major challenge. No, as Sydney and
I think there's two data center projects there that they're
proposing to build in the next five years that will
take up one hundred percent of Sydney's electricity today. So
that's why you know we've got twenty two fast track
resource renewable energy projects in the Fast Track legislation. But that.
Speaker 1 (05:33):
Current electricity, I mean, we're not building what are we doing?
We're building windmills, are we building farms? Are we building
all of the above? All of the above? Why don't
we go nuclear?
Speaker 2 (05:41):
Well that's not something that we Well, we've got abundant
natural resources. We just haven't even tried to do what.
Speaker 1 (05:46):
We've Let me, let me give you the argument. So
you look at Google and Microsoft and Oracle. What are
they doing. They're doing deals three Mile Island, They're building
their own nuclear reactors. Why because you cannot rely on rain?
Speaker 2 (05:57):
Yep, no, I hear you. But I also know that
we've got abundant natural resources and we haven't done the
job that we should be able to do with the
resources that we've already got.
Speaker 1 (06:05):
So when it takes we can build enough wind mills
and enough solar panels, and enough dams. Yeah with gas,
with some gas to run any number of data center.
I think when we can't turn the lights on in
the middle of winter.
Speaker 2 (06:19):
Well that's but I just say to you That's why
we've got to properly go through. I mean, we're in
a perverse situation where it took us eight years to
consent to win farm, two years to build it. That
should be a one year consenting. We should get the
benefit within three years and then we can move on.
You know, that's one hundred and thirty thousand houses, you know,
the particular farm I was thinking about one hundred and
thirty thousand houses. Actually all the energy needs met through
off you know, through.
Speaker 1 (06:40):
Your argument and really simple terms. We can do it renewably. Yeah,
we're about nuclear. Nuclear is not on the table.
Speaker 2 (06:45):
We're never going to an ocular. But what we can
do is we do a hell of a better job
than what we've been doing. Because again, if you're sitting
in Singapore, you've got one hundred and ninety five countries
to invest that sovereign wealth superannuation money in. If you're
sitting in Korea or Japan with the other places, you know,
I've spoken them to as well. They've got so much money.
You know, I sat down in a meeting with five
Japanese bankers. You know, they immediately had like probably three
(07:07):
hundred and fifty billion dollars to invest just and a
lot of it they would love to send to this
part of the world. They just don't know what's here.
I met with the Katari Prime Minister for four hours
and just said he's got a Katari investment fund. We
would love their money. He said, it came through here.
You know, seven years ago, Sauce I couldn't find anything
to invest in. I said, we'll come back. You know,
let me let me get you the deal sheet of
what I think. You know, you might want to make investments,
(07:28):
make investments.
Speaker 1 (07:29):
What are you going to do with QI Bank?
Speaker 2 (07:31):
Look, I mean what we've said is, look, the banking
set does not competitive. The competition is not good because
consumers are paying for it with higher prices. We've now
got this inquiry going on through the Finance and Expendit
You Committee that will roll through, but we need kwe
Bank to actually be fired up as the maverick as
it's been talked about.
Speaker 1 (07:46):
You're you going to float it?
Speaker 2 (07:47):
Well, we're going to get a bunch of investment options
that Nicholas asked the Treasury to give her discussion.
Speaker 1 (07:52):
He's given you the options. One of the options is floating.
Speaker 2 (07:54):
Well, I haven't seen the advice yet to float it. Yeah, well,
one of the options could be to put some into
the New Zealand Stock Exchange, other ways in which she
could get super funds or other other funds to invest
in it as.
Speaker 1 (08:05):
Well, your favor.
Speaker 2 (08:06):
I don't have a view until I see that advice. Mike,
I know that's not the answer you want.
Speaker 1 (08:09):
Tell me no premature until here's my main point. My
point is keep we Bank tomorrow, so you sell it off.
Tell me materially how it changes the banking landscape of
this country.
Speaker 2 (08:19):
Well, I think a more capital growth into care We
Bank so that it actually can compete wrongers. It makes
them bigger, but also makes them be able to compete
very strongly for that business. I think there's other things
that we're going to need to do as well with
the banking. But let's get through some of this inquiry.
Speaker 1 (08:35):
Because I'm following this inquiry with a great deal of interest.
I listened to Antonio last week. She's fantastic, so she
who was a perfectly coach and argument I thought, I mean, yes,
they make a lot of money, but there are a
big bank so to the other four major banks. So
to keep if Keywi Bank was floated tomorrow, it would
become a bigger bank. There'd be five big banks. Yeah,
how does that fix anything? No?
Speaker 2 (08:55):
I just I think you know the reality is we've
got four We've got four cozy banks and a very
cozy relationship and no.
Speaker 1 (09:00):
One has shaken stop.
Speaker 2 (09:02):
Here's an example, open open banking for example, that's something that's.
Speaker 1 (09:06):
You have you read the documentation in Australia on open Yeah, yeah,
but it looks no different now.
Speaker 2 (09:09):
But the point is it's been left with the banks
to manage amongst themselves that open banking piece, rather than
actually that regulation coming from a different place. And I
think you know people, you know they don't move banks easily,
but actually if you made it much easier to do so,
you would. But when you leave it to the bank
to say it does not their interest to.
Speaker 1 (09:26):
Change, you've not convinced me that we've got some sort
of robber barons scenario in this country where everyone's getting
ripped off. I mean, and if you could, that's fantastic,
because I don't care. I just don't see what floating
selling doing anything to Kiwi Bank profoundly changes the marketplace.
Speaker 2 (09:43):
I think in a market like New Zealand, where you
end up defaulting to one or two players. Two players
or in this case four that actually anything that promotes.
There's actually fifteen retail there's actually eighteen banks and the
four majors. Yeah yeah, yeah, but they but they're not.
You know, we need to make sure they're capitalized in
a way that they can actually compete very strongly. And
I do think capital which capitalize they get out into
(10:04):
the rural sector. Do you think suddenly materially the escape
of the rural I think I think that's one of
the big observations. If you take rural banking for example.
You know, many of our farmers have been put under
huge amounts of pressure by their banks. They end up
having to run a much higher interest rates than we
do in the cities. The resonsequence because the risk, I
get it, But actually I think many of them would
(10:24):
want to change to someone who had actually bank them.
Speaker 1 (10:26):
Give me a timeline on when this is happening.
Speaker 2 (10:28):
Well, again, what we're getting is advice coming back from
Treasury about the options around Kiewi Bank and capital. I
think we'll have a conversation in cabinet as planned for
in the month of December.
Speaker 1 (10:36):
Okay, good to see Prime Minister Christopher Luxan for more
from the mic Asking Breakfast, listen live to news talks
they'd be from six am weekdays, or follow the podcast
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