NZ Post frontrunner for 'people's bank'

By RICHARD BRADDELL

WELLINGTON - Deputy Prime Minister Jim Anderton expects rapid progress on his "people's bank" proposal, with New Zealand Post standing out as the most likely vehicle.

This was welcomed last night by NZ Post chairman Ross Armstrong, who said the idea made a lot of sense.

"With a number of trading banks closing down in the bush towns around the country, there has to be some sort of provision socially for the people there to have some sort of banking facility," he said.

NZ Post operated Postbank branches in many of those towns before the bank was sold to the ANZ Banking Group.

Mr Anderton made his comments about NZ Post while speaking yesterday at the media launch of a new brand for the Public Trust.

He said a surprising array of public sector organisations and enterprises, credit unions and local body corporations and authorities were among those who had expressed interest in the concept.

Discussions had been going on for some time and a report from officials was expected later this month, by which time the Government would have a clear idea of where it was going.

While mooting NZ Post as a strong contender for a new state-owned people's bank, Mr Anderton dropped a previous suggestion that the Public Trust could form the backbone for a new bank, although he said it might still have a secondary role because of its funds management and financial services capabilities.

NZ Post already has extensive agency arrangements, which it conducts on behalf of several banks and insurance companies.

But Mr Anderton implied that any conflict between those arrangements and a banking role for NZ Post was the problem of the other banks.

"To be fair, some of those banking institutions have encouraged NZ Post to go into competition because they don't seem to want their customers," he said.

Commenting that today it was the banks which robbed Ned Kelly, he said that just because customers were small, it did not mean they were not important as citizens.

The banking issue stole the limelight at the brand launch in which the Public Trust is endeavouring to toss off perceptions that it is a tired old government department or a poor man's solicitor.

Before Mr Anderton's arrival, the Public Trustee, David Hutton, had bemoaned founding legislation that excessively prescribed the trust's operations - for instance, forcing it to go to the Government for orders in council for routine matters such as changes in interest rates.

He blamed that on the Public Trust's antiquated legislation which, although drafted in 1956, was based on a 1921 act which in turn derived from one in 1872.

That legislation was also restricting the Public Trust's ability to compete against lawyers in areas such as conveyancing.

Mr Anderton said he supported new legislation that would enable the Public Trust to compete on an equal basis and expected something this year.