Heather du Plessis-Allan: I'm not convinced the Commerce Commission study will lead anywhere

For once, we have a Commerce Commission study that isn’t going nowhere.

Nicola Willis says she's going to do what the Commerce Commission has recommended in the banking study out today - and she'll do all 14 recommendations.

This is a little surprise, isn’t it? Because we have got very used to these studies coming out and pretty much nothing of any substance being done. We've had the petrol study, the supermarket study, the construction industry study - I was a little cynical about the banking study, but I was wrong.

And what's even more surprising is that it's a centre-right Government - who are often accused of cosying up to big business - who are prepared to do the ballsy thing there. Doesn't that make a nice change?

Now as to whether it’s actually going to make a difference - the jury is out big time.

I mean, I love the idea of capitalising Kiwibank, it'll most likely improve the bank, it'll give Kiwi investors another productive asset to put their money into - it deserves to be beefed up. And for those reasons alone, I'm stoked Nicola Willis is committed to doing it.

But I'm not convinced it’s going to be the disruptor and add the competition that's needed. Too many people who know a lot more about economics and finance have said it won't be big enough.

With the open banking thing that Nicola Willis is committed to, again, I haven't seen any evidence that this is the game-changer it's being sold as. If anything, it's been really expensive in Australia - it's cost about $1.5 billion without doing all that much for customers.

Now, those are just two out of 14 recommendations - and who knows? Maybe in combination these will all together make a difference, but as I say, the jury's still out.

But you can't fault the fact that the Government's prepared to do what's recommended. And even if it doesn't affect competition as much as we'd like, at least we're getting on with doing something about Kiwibank. Which, frankly, has been a long time coming.

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Episode Transcript

Speaker 1 (00:00):
Together do for clan. Here's something to celebrate as something
a little bit different for once, For once, we've got
a Commus Commission study that isn't going absolutely nowhere. Nikola
Willis has today said she is going to do what
the Commus Commission has recommended in the banking study out today,
and she is going to do everything it's recommended, all
fourteen recommendations. Now this is a little surprise, isn't it,

(00:21):
Because I think we've got very used to these studies
coming out and pretty much nothing of substance being done.
We had the petrol study, were at the supermarket study,
where at the construction industry study, and so you know,
I was a little cynical about the banking study, but
I was wrong. And what's even more surprising, I suppose,
is that it's a center right government who are the
ones often accused of cozying up to big business, who

(00:41):
are actually the ones prepared to do the bulls thing here.
So doesn't that make a nice change for once. Now
as to whether it's actually going to make a difference,
the jury is out on this one. I mean recommendation
number one capitalizing kiwibank I love the idea of doing this.
I think it's going to probably improve the band. I
think it will absolutely give Kewi investors another productive asset

(01:03):
to put their money into, and Kiwibank deserves basically to
be given a chance to fly a bit more. And
for those reasons alone, I'm stoked that Nikolawillis is committed
to doing this, but I'm not convinced it's going to
do what they wanted to do. I'm not convinced it's
going to be the disruptor and add the competition that's needed.
Too many people now who know a lot more about
economics and finance than I do, have said it's not

(01:24):
going to do it. It just still will not be
big enough. Second recommendation is the open banking thing. Nikolai
Willis again is committed to doing that, but again I
haven't seen any evidence that this is the game changer.
It's been sold as, if anything, especially out of Australia
by the way they've done this, and if anything there,
it's just been really expensive. It's cost about one point

(01:45):
five billion dollars without apparently doing all that much for customers. Now,
those are just two or fourteen recommendations, and look, who knows,
maybe in combination, all of them put together will make
a difference to competition. But as I say, jury still out,
but still you can't fault the government for the fact
that they're prepared to do what's recommended, and even if

(02:05):
it doesn't affect competition as much as we like, at
least we're getting on with doing something about Kiwibank, which
frankly has been a long time coming. For more from
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