Cullen slaps down Shaw

Stuff reports:

co-leader said the move opened the door to partial privatisation. 

“This deal makes it harder for the Government to use Kiwibank to drive in the banking sector, as the announced we’d do, because the Government can’t direct the Super and ACC funds in the way it could have directed Kiwibank,” he said.

The announced last week they would inject $100m of capital into the bank, and allow it to keep more of its profits to foster a faster expansion. 

“The fact is the Government forced Kiwibank’s hand and today’s announcement will make it easier than it was before to move Kiwibank into private ownership.”

But Cullen said Shaw’s argument, that the Government was able to direct Kiwibank, was “completely incorrect”

“Kiwibank is a 100 per cent owned subsidiary of Post but in terms of the Companies Act and Reserve Bank requirements it must act independently in terms of its activities.

“The Government cannot direct Post, nor through New Zealand Post can it direct Kiwibank.”

It is a worry that doesn’t even know this basic fact of company law.

It is also a worry that Shaw is complaining that politicians like himself won’t be able to make banking decisions.

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