21 Oct 2008

NZ First wants KiwiBank shares floated, but only to Kiwis

1:55 pm on 21 October 2008

New Zealand First leader Winston Peters believes KiwiBank shares should be floated, and only New Zealanders allowed to buy them.

Mr Peters wants to allow New Zealanders to have a 24.9% share in the Government-owned bank

He says he would also separate the bank from New Zealand Post in order to reclaim New Zealand's banking system.

Mr Peters told supporters at the Tauranga Yacht Club on Monday 20 October that that reclaiming the country's banking system would help New Zealand through the global economic crisis.

Mr Peters says New Zealand's banking system is overwhelmingly controlled by Australian-owned banks, which means that billions of dollars disappear from the country's economy each year.

Mr Peters says New Zealand First would eventually establish KiwiBank as a stand alone commercial bank.

He also says the Government should use KiwiBank for its $55 billion worth of banking, instead of an Australian-owned bank.

Mr Peters told Morning Report it is senseless to give local and central Government business to foreign-owned banks, when profits could be kept here.

He says it is a decent, old-fashioned strategy.

Asset sale turnaround - National

National's leader John Key is dismissing Mr Peters' proposal as a change of heart towards asset sales.

Mr Key says National would not sell KiwiBank but clearly Mr Peters would, which is surprising for someone who hs spent his entire career berating the National Party about assets sales.

John Key also says KiwiBank has a very domestic focus, which makes the idea impractical.