Petition on Bank Stability Dismissed

31 July 2014

The New Economics Party is disappointed that their 877 strong petition asking for a Parliamentary Enquiry on bank stability has been declined by the Select Committee on Finance and Expenditure.

Spokesperson Deirdre Kent said they were not just frustrated with the outcome (which was expected) but also horrified by the process where the committee met behind closed doors.

“There is so much at stake with banks playing in the derivatives casino, that the issue should be taken more seriously. The public is being kept in the dark as to what is going on internationally in the credit blowout. The Reserve Bank's reply suggesting that they had it all in hand was by no means reassuring yet they have gone to the trouble of setting up a system whereby ordinary depositors will have their accounts confiscated in the event of a bank collapse.”

Ms Kent said “I don’t remember the Reserve Bank predicting the Global Financial Crisis, so why should we have faith in them now?

"At least they did tell us that the growing derivatives market was now 4.2 times the size of the GDP.

“The fact that the Select Committee meets behind closed doors is a big worry. We weren’t invited to give oral evidence, we didn’t get to eyeball them and we don’t know which politician said what. When Parliament has legislated 22 years ago for local authorities to have all their meetings in public without a good excuse, they continue to meet with the public excluded. Such a process is unfair, undemocratic and not in line with their stated policy of open government.”

For further information visit http://neweconomics.net.nz

ENDS

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