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
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 chair 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 us. Scott, morning to
you morning Mike. Are you disappointed in the reaction from
all the people going I'm just going to pass the cost.
Speaker 2 (00:21):
On, Well, yes 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 1 (00:37):
This is a cost on business though, isn't.
Speaker 2 (00:39):
It 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 price
you pay at the till.
Speaker 1 (00:52):
Now, why didn't you whack the banks?
Speaker 2 (00:56):
Because this is related to what is referred to as
interchange fees, and the CoCom 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. So it's not directly related to the banks,
(01:19):
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 1 (01:24):
So do explain it, because I think that part got missed.
I know Nicole of post Cab yesterday tried to explain
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 2 (01:46):
Well, that's a matter for the Commerce Commission. It's the
Commerce Commission that regulates interchange fees, so they'll be watching
very carefully this reaction as well, and I'm sure that
in the future, maybe soenter than we think, they might
have another look at it.
Speaker 1 (02:00):
Okay, So when you say sooner than they think, you
know something's coming.
Speaker 2 (02:03):
Yes, well, not necessarily, but the Commerce Commission members they
read and take into account media and public response, just
like you and I do.
Speaker 1 (02:12):
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 of through it, what's stopping them.
Speaker 2 (02:25):
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 1 (02:37):
Is that as fast as you can go? Because that
was the other surprise yesterday. I mean it's it's July
five and you're saying May twenty six.
Speaker 2 (02:46):
I'd like to go faster, and the Prime Minister indicated
yesterday if we can go faster, we will.
Speaker 1 (02:50):
Okay, Well, good luck with that. Appreciate it. Scott Simpson,
who's the Commerce and Consumer Affairs Minister.
Speaker 2 (02:55):
For more from the Mike Asking Breakfast, listen live to
news talks. They'd be from six am weekdays, or follow
the podcast on iHeartRadio.
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