MPs get answers on Kiwibank risks

By KEVIN TAYLOR

Concerns about security and the cost to NZ Post franchises of running a bank branch have been dismissed by the NZ Post Franchise Association and Kiwibank.

National MP David Carter yesterday called the proposed Kiwibank franchises sitting ducks for robberies, and said staff were worried about their security.

He said many of the planned bank franchises, at present NZ Post outlets and agencies, were not suitable for the handling of large amounts of money.

Meanwhile, Act MP Rodney Hide says many NZ Post franchises are unhappy with the transaction fees being offered by Kiwibank and a "franchise revolt" could derail the new bank.

He released a letter from South Island NZ Post franchises raising concern at the cost to them of expanding into banking. They will get 53c a Kiwibank transaction while franchisees now get $1.03 for each Taranaki Savings Bank transaction.

But NZ Post Franchise Association national representative and NZ Post agent Glyn Jones dismissed both Mr Carter's and Mr Hide's comments.

No franchisee had raised the issue of security, he said, adding that Kiwibank had made it a priority.

Mr Jones said a few people were making lots of noise over the transaction fees.

"You could count all the people that are making all the noises on less than one hand."

Kiwibank wants all 173 present NZ Post franchises to carry its services, as it aims for 300 outlets open by May.

Mr Jones, who runs Waiuku Paper Plus south of Auckland, is already a NZ Post agent and will be adding a bank branch himself.

"I see this as an addition to my business."

He added that many franchises were seeing Kiwibank as a "brilliant deal".

Kiwibank spokesman Bruce Thompson also dismissed security and transaction cost concerns.

He said he would welcome the opportunity to brief Mr Carter on the bank's security, which was a prime requirement of Kiwibank.

"How can he say it's inadequate if he does not know what it is?" Mr Thompson asked.

"We understand the need for security and it's not something we are taking lightly."

He said existing NZ Post outlets already handled more than $1 billion in transactions annually, and Kiwibank would be boosting present security arrangements.

On the issues of transaction costs Mr Thompson said Kiwibank was getting strong support from franchises.

He was confident 300 branches would be open by the end of May or early June.

The first branches are due to open in the middle of next month.

nzherald.co.nz/kiwibank