Govt must tender Westpac contract, Greens say

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The Green Party is calling on the government to put out a competitive tender for its master banking contract after ministers revealed they had accepted corporate hospitality from Westpac in the last year at its Westpac stadium box and at the exclusive White House restaurant in Wellington.

The government's master banking contract is thought to be the single biggest banking contract in New Zealand.

Last year the Green Party asked Finance Minister Bill English why it had not been put out for a full competitive tender since David Lange was Prime Minister, with the pressure leading to English saying the government would commit to a future procurement process for the contract, although it was unclear this meant a tender.

"Given the complexity of banking arrangements for key departments, we are currently consulting with these departments on the timing, nature and scope for this process," English said in December.

The master banking contract has been Westpac's for 21 years without being tendered.

It covers all government departments, but not Crown entities or State Owned Enterprises.

In December, a spokesman for English told interest.co.nz the contract had not been re-tendered to date because the costs of doing so outweighed the expected benefits, "given the complexity of arrangements with departments and the price reductions negotiated under the existing contract".

On Wednesday morning the Greens released a full list of answers to the question of whether Ministers or their staff had accepted corporate hospitality from Wesptac over the last year.

"A series of Green Party written questions has revealed a widespread pattern of treating government ministers and their staff.

"Nine ministers were found to have accepted corporate hospitality from Westpac Bank in the last year, including box seats at the Rugby 7s, dinner at the White House restaurant (where mains cost $50), and tickets to rock concerts (Gerry Brownlee attended Bon Jovi).

Thirteen ministers had staff who had accepted similar hospitality from Westpac," Green Party co-leader Russel Norman said.

"The Government needs to reconsider the way they regularly accept gifts from large corporates like Westpac. These gifts aren't neutral; they buy access to decision makers in an unfair way," Norman said.

"Ministers accepting personal gifts from Westpac creates a potential conflict of interest as the Government is actively considering retendering part, if not all, of the banking master contract. Most New Zealanders can't afford this kind of access, and hence it corrodes the public's belief that we are all equal in the eyes of the Government," he said.

"The fact that so many ministers had staff who also accepted Westpac's largesse is disquieting, given the central role of ministerial staff in influencing the decisions of their busy Ministers. There's an important difference between doing business in a friendly way and using money to buy access to power."

One way to allay concerns over undue influence in Westpac's case would be to have a competitive tender for the master banking contract, Norman said.

"Westpac's 20-year monopoly needs to be opened to competitive forces to ensure the taxpayer is getting the best value for money from the Government's banker," he said.

"Another way to avoid all suspicion is for the Cabinet Manual to be more explicit about accepting gifts. Ministers and their staff need to accept that they must work to a higher ethical standard when it comes to corporate treating. We need to keep politics honest."

- INTEREST.CO.NZ