David SHEARER

Labour Leader                       

2 September 2012                                                       

MEDIA STATEMENT

Keep KiwiBank Kiwi, Mr Key
 
The Labour Party is calling on the Prime Minister to throw his support behind a bill designed to ensure KiwiBank stays owned by the people of New Zealand.
 
“KiwiBank is a Kiwi institution.  In just a decade it’s carved out an important place in our banking system.  It has provided much-needed competition to the big Aussie-owned banks and kept them honest by consistently offering the lowest interest rates.  And it’s the bank of choice for 800,000 people,” says the Labour Leader David Shearer.
 
“KiwiBank is too important to leave vulnerable to sale, so Labour has drafted the Keep KiwiBank Bill to protect it.” 
 
Under the Bill, KiwiBank could not be sold without the support of 75 per cent of MPs, or from a majority of voters in a referendum.
 
“Banks in New Zealand are making record profits, but most of that money is going overseas. Of the major players in the market only KiwiBank is locally owned, meaning its profits stay in New Zealand.
 
“National is hell-bent on flogging over our energy companies, and we all know most of those shares will end up being owned offshore.  I don’t want to see that happen to KiwiBank as well.
 
“John Key has said National won’t sell KiwiBank on his watch.  Well, here’s his chance to prove it.  If he is genuine, then he should be happy to support Labour’s Bill.”
 
“Let’s keep KiwiBank true to its name, and keep it Kiwi,” says David Shearer.
 

Keep Kiwibank Bill

Member’s Bill

Explanatory note

General policy statement

Kiwibank is a wholly owned subsidiary of the State-Owned Enterprise, the New Zealand Post Group.  New Zealand Post Ltd, including Kiwibank, is wholly owned by the Crown through its Shareholding Ministers.

All decisions relating to the operation of a State-Owned enterprise are the domain of the board of the State enterprise in accordance with the Companies Act and the enterprise's statement of corporate intent. The Shareholding Ministers have no authority to direct the State Owned Enterprise concerning its operations, except in the limited and transparent ways set out in the State Owned Enterprises Act 1986. This means that the Board of New Zealand Post Ltd could decide to sell all or part of Kiwibank, would ensure that any proposal to partly or wholly privatise Kiwibank would require the support of 75% of all members of the House of Representatives, or alternatively, from a majority of voters in a referendum, in order to lawfully proceed.

Clause by clause analysis

Clause 1 is the title clause.
Clause 2 provides that the Act comes into force on the day after the date on which it receives Royal Assent.
Clause 3 is the purpose clause.
Clause 4 is an interpretation clause.
Clause 5 provides that the Act binds the Crown.
Clause 6 restricts the present owner of Kiwibank, NZ Post Ltd, from selling or disposing of Kiwibank, except where such sale of disposition has been approved either by a 75% majority of all Members of the House of Representatives , or by a majority of the valid votes cast in a poll of enrolled voters.

Hon Clayton Cosgrove

Keep Kiwibank Bill

Member’s Bill

Contents

Page
1
Title
1
2
Commencement
1
3
4
5
6
Purpose
Interpretation
Act binds the Crown
Restriction on sale of Kiwibank
1
1
1

The Parliament of New Zealand enacts as follows:

1 Title
This Act is the Keep Kiwibank Bill 2012.

2 Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.

3 Purpose
The purpose of this Act is to ensure that Kiwibank continues to be owned by the New Zealand people, unless and until it is absolutely clear that they no longer wish to own Kiwibank.

4 Interpretation
In this Act, unless the context otherwise requires, - New Zealand Post Ltd means the State enterprise New Zealand Post Ltd as listed in Schedule 1 of the State Owned Enterprises Act 1986 Kiwibank means the wholly owned subsidiary of New Zealand Post Ltd that currently operates as a registered New Zealand Bank.

5 Act binds the Crown
This Act binds the Crown.

5 Restriction on sale of Kiwibank
Despite any other enactment or rule of law, no sale or other disposal of ownership or control of all or any of New Zealand Post Ltd's interest in Kiwibank may proceed unless a proposal to do so, including a proposal contained in a clause in a Bill, -
(a) Is agreed to by a 75% majority of all members of the House of Representatives; or
(b)Has been carried by a majority of the valid votes cast at a poll of the electors of the general and Māori electoral districts.

ENDS

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