Govt should bank on Kiwibank - Greens

Greens co-leader Russel Norman. Photo / Mark Mitchell

Prime Minister John Key and his Government lacks the courage to tackle the big Australian banks which have saddled New Zealanders with billions of dollars of debt in pursuit of profits, says Greens co-leader Russel Norman.

Dr Norman's comment followed his speech to the party's annual meeting in Auckland this morning where he said New Zealanders were under the thumb of Australian banks and called for state-owned Kiwibank to be bulked up to take them on.

"The Green Party is serious about fixing our banking system so that we are no longer mortgage slaves to the Aussie banks," the Queenslander who now calls New Zealand home told the meeting.

While the Greens agreed with Mr Key that New Zealand had a serious debt problem, Dr Norman, he challenged the National Government's current focus on the Crown's debt - which is dwarfed by that borne by households.

"They are not talking about the biggest problem."

The Australian banks had "made a mess" of the economy, "borrowing for speculation in land and housing to maximise their profits at the expense of New Zealand".

There was little sign of any willingness from either National or the last Labour Government to do anything about that.

"It's undoubtedly true that the big banks wield enormous power influence within New Zealand and this Government and the last one have been a little bit unwilling to challenge that."

That was due to "a lack of courage" he said.

The Greens did not favour policies that would see Crown debt blow out further but did want to see Kiwibank, which has just a 3 per cent market share, given more resources to compete with the big banks who paid $3.5 billion in dividends to their Australian parents in the last two years.

Dr Norman also said Kiwibank should take over the Government's banking business from Westpac which has held the contract for two decades.

This week the Greens highlighted Westpac's corporate hospitality to Government ministers and their staff, including tickets to Bon Jovi's concert last year for Gerry Brownlee and Paula Bennett.

The Government is currently reviewing the contract - held for the last two decades by Westpac - and says it will put it up for grabs in a "competitive" process soon.

New Zealand's banking sector is 95 per cent controlled by the four big Australian-owned banks who paid their parents $3.5 billion in dividends over the last two years, Dr Norman said.

Westpac's defeat in a complex High Court tax case two years ago saw it ordered to pay $500 million to the IRD and triggered a round of settlements with the other banks that netted the department billions in unpaid tax.

"We need to fix our finance sector to achieve greater levels of Kiwi ownership and make capital available for sustainable investment."

Another plank in the Greens' "clean, green economic prescription" was for the state-owned energy companies to issue "green energy bonds" to fund development of renewable energy technology.

With the $190 billion global market for solar, wind and biofuels expected to grow to $350 billion in the next decade, "New Zealand can get a piece of that action being focussed and strategic and building on our strengths".

Dr Norman also took a swipe at the National Government's emissions trading scheme and regulation of commercial water use, both of which had been distorted due to pressure from polluters.

The Greens meeting will see the party discuss and vote on a controversial proposal which may in theory allow a post-election coalition with the National Party.

Co-leader Metiria Turei will tomorrow speak on social policy issues, area where the Greens and National would struggle to find much common ground.

It is understood the the lack of Auckland representation at the top of the Greens' party list will also be focus for robust discussion.
Australian Greens leader Bob Brown is to address the meeting on Monday.