Rt Hon Winston Peters

New Zealand First Leader

Member of Parliament for Northland
4 NOVEMBER 2016

Removing Bank Guarantee a Poke in Eye to Ordinary Savers

By removing the government guarantee for Kiwibank, the National government are jettisoning their responsibilities and exposing ordinary New Zealand savers to the volatility and unpredictably of the global economy, says New Zealand First Leader and Northland Member of Parliament, Rt Hon Winston Peters.

“Once upon a time Kiwis could look to their government to provide rock solid support against the sharks of this world.

“But global fanatics like John Key and his National colleagues couldn’t care less about the security of ordinary New Zealanders and their savings.

“Other OECD countries show more regard for their citizens by providing a government backed bank deposit guarantee scheme up to a modest level of savings.

“They recognise if they don’t do it, a possible financial crisis could have devastating consequences for their countries.

“Banking expert Geof Mortlock has stated (Stuff, April 8, 2016) New Zealand depositors have no protection in a bank failure and we are the only country in the advanced world without any form of depositor protection.

“The Reserve Bank’s ‘Open Bank Resolution’ policy, the untested alternative to the guarantee, could result in depositors bearing losses in a bank failure.

“Unlike National, New Zealand First believes it is vitally important to safeguard the savings of ordinary New Zealanders.

“We have a policy providing a government guarantee on deposits of up to $100,000 with New Zealand owned banks including Kiwibank,” says Mr Peters.

Editor’s note: Kiwibank has announced the existing guarantee on savers’ money will end on February 28, 2017

ENDS

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