I bet Cullen enjoyed kicking James Shaw

Sir Michael Cullen must have enjoyed himself giving James Shaw a kick in the slats.

Green Party co-leader James Shaw said the move opened the door to partial privatisation.

“This deal makes it harder for the Government to use Kiwibank to drive competition in the banking sector, as the Green Party 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 Greens 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.”    Read more »

Watching the Media party and Labour scoff rats over Kiwibank is hilarious


The Media party and opposition politicians really don’t know what to say about the government’s announcement yesterday that Kiwibank was selling down 45% of Kiwibank to the Super Fund and ACC.

The fact that it was Sir Michael Cullen announcing it meant that rat-swallowing was the order of the day.

You see the left-wing have been telling us for years that the reason Bill English was able to steer us through the global financial crisis was because of the brilliant state of the books that Michael Cullen left them in.

They can’t hardly start attacking this scion of the left and hero of Clarkism now can they?   Read more »

It’s not Kiwibank up for sale, it’s NZ Post selling down its shareholding

Labour MP Michael Cullen comments on his meeting with the SFO after the Privileges Committee, Parliament, Wellington, New Zealand, Monday, September 22, 2008. Credit:NZPA / Ross Setford

Troubled state-owned New Zealand Post is selling 45 per cent of Kiwibank, 25 per cent to the New Zealand Super Fund and 20 per cent to ACC.The deal values Kiwibank at $1.1 billion, NZ Post chairman Sir Michael Cullen said. Both entities are owned by the New Zealand government.

“There’s no sale of Kiwibank outside Government ownership,” Cullen said, adding that if there had been a sale into private ownership it would have “almost certainly led to a higher price”.

Read more »

Tell ‘im ‘e’s dreamin’

Someone needs to tell James Shaw that Kiwibank would need a whole lot more capital than $100 million to allow it to compete with the Aussie banks.

Kiwibank would get a $100 million capital injection to turbo-charge its expansion and create more competition in the banking sector, under Green Party policy.

In announcing the policy today, co-leader James Shaw said a lack of competition among the big Australian-owned banks meant Kiwis were missing out on lower mortgage rates.

“Beefing up” Kiwibank would lead to lower interest rates and could save homeowners hundreds of dollars, Mr Shaw said.

“Under our plan, a first-home buyer in Auckland with a $500,000 mortgage could save $690 a year, meaning they pay off their mortgage earlier.”   Read more »

Kiwibank not for sale, says Bill English, so why is it being prepped for sale?

NZ Post announced it was cutting 500 jobs from within the postal service’s managers.

The NZ Post board is now looking at separating Kiwibank from its parent company.

Why would it do that? Kiwibank made a $71 million half year profit in the six months to December and is responsible for the bulk of NZ Post’s profits.

Surely NZ Post’s board would want to hold onto those profits? Especially now that Kiwibank has started to pay dividends to NZ Post?

Well, that is one argument. But Kiwibank needs more capital so it can grow and compete harder against the big Australian banks.

If Kiwibank’s balance sheet were to be separated from NZ Post it would be able to borrow money more cheaply offshore to lend in the New Zealand mortgage market.

The bank could also retain its dividends rather than paying a portion to NZ Post.

Perhaps we’re looking at it the wrong way. Maybe the real reason is that there are plans to rationalise NZ Post and taking away its artificial profit crutch from Kiwibank will force it to be self-sufficient.  Read more »


An open letter to Kiwibank

Peter Osborne calls out Kiwibank for their misleading adverts.

Dear Sir

I recently had the misfortune of watching your “take the leap” advert on television, apparently aimed at those who have left the security of their jobs to set up a business. In the advert, you claim to know how this feels and that your bank also “took the leap.”

I find this not only an insult to the intelligence, but a bare-faced lie.

At no time since your bank’s inception did anyone in your organisation invest their own capital in your bank. Your bank was started off the backs of the taxpayer, and had continued that way. You risked nothing but the taxpayer’s anger. Thus your future was and still is assured – by the taxpayer. Regardless of how badly managed KiwiBank is, the taxpayer will always be forced to foot the bill.

Read more »

More good news, this time in the provinces

Labour’s mantra of misery continues as they talk down the New Zealand economy.

Meanwhile it looks like the crisis in the provinces, that they talk about, has come right, at least in the Hawkes Bay.

Job listings in Hastings are up nearly 25 per cent, with growth in agriculture and transport leading the way.

The Trade Me Jobs employment survey for April to June shows the whole country enjoyed high job growth, encouraging people to stay here rather than pack up for Australia.

Listings in Hastings jumped 24 per cent to 458 compared with the same period last year, while Napier flatlined at 398.

Jobs in transport and agriculture were the fastest growing sectors in Hastings, while Napier experienced a drop in hospitality and retail, offset by growth in transport and office work, the report showed.

Hastings Mayor Lawrence Yule said it was possible the spike in jobs listings in Hastings could be attributed to a strong rural sector.  Read more »

Errrr…is that a PIG in the picture?

The NZ Herald has an article about a new muslim friendly shariah product from Kiwibank:

Is that a piggy bank in an article talking about shariah  banking products?

Is that a piggy bank in an article talking about shariah banking products?

Oh dear, I wonder how long it will be before some outraged Muslim heads down to bank offering this product to chuck a brick through the window for their insult.

Has Shayne Currie got a bodyguard…he may soon be flatting with Salman Rushdie.

They’ve rioted in the streets of London for much less.  Read more »

Fran O’Sullivan on Two-Face Cunliife

Fran O’Sullivan writes at the Herald about Two-Face Cunliffe.

Cunliffe also uses an essential duality – which has been accurately pin-pointed as “talking out of both sides of his mouth” – to try to assuage middle-class and politically adept New Zealanders that he doesn’t really mean all the tosh he threw as bait to Labour’s bedrock base to garner voting support during his leadership campaign.

What fascinates and frustrates is that it is difficult to work out which side of Cunliffe’s mouth will triumph if he ends up this time next year as Prime Minister.

Will it be the crusading politician who wants to bring down bloated plutocrats, raise the underclass up and cut the ground out from under particular corporates through legislative intervention?

Or will it be the more considered politician – an experienced former cabinet minister who is prepared to take advice and feedback from affected players instead of ramming decisions down their throats with a damn the consequences mentality?  Read more »

Kiwibank dragging down NZ Post

Kiwibank is dragging down NZ Post and Labour’s plans are to lumber it with a budget and likely to fail insurance company as well. Brian Gaynor at the Herald looks at the parlous state of NZ Post

Why does New Zealand Post continue to flounder while Deutsche Post, the German postal provider, has significantly outperformed the Frankfurt sharemarket in recent years and Royal Mail, the UK mail operator, has just had an extremely successful IPO?

A brief assessment of the three post providers shows that the two European companies have clear e-commerce driven parcel and logistics growth strategies whereas New Zealand Post has been adversely affected by the requirement to contribute substantial capital to Kiwibank, its 100 per cent owned subsidiary.

Around the world postal services are adapting and changing to the new global environment and some very successfully including Deutsche Post and Royal Mil, both successfully listed on the stock exchange and piling on the growth rapidly. Meanwhile in New Zealand.

No one would argue against the importance of parcels but what investments has NZ Post made in this area? What has it done to capture the e-commerce trade?

For example, parcels were mentioned only thirteen times in the group’s 2011 annual report whereas Kiwibank was referred to 197 times.

One of the problems with NZ Post is that Kiwibank is soaking up most of the group’s surplus cash and seems to be squeezing out the traditional postal services.   Read more »