Anderton confident his bank will be cheapest

By VERNON SMALL deputy political editor

Alliance leader Jim Anderton says the Kiwi Bank will set low fees overall, despite claims that its automatic teller Machine charges could be higher than those of other banks.

National leader Jenny Shipley yesterday released extracts from NZ Post's business plan for the bank, showing that its reliance on WestpacTrust or ANZ machines could drive up its ATM costs.

The bank has the working title MyBank, according to the extracts.

But Mr Anderton criticised Mrs Shipley, saying the extract was "highly selective."

"She should be asked, 'Does the business case propose an overall fee strategy considerably under the prices charged by its competitors?"'

National has a copy of NZ Post's business plan for the bank, and has been selectively releasing the most politically damaging sections in an attempt to show that the venture will not have lower fees or give services to poorer customers and beneficiaries.

Mrs Shipley said the business plan did not represent the caring and sharing bank Mr Anderton had tried to portray.

She said it categorised beneficiaries as an undesirable cost.

"The business plan contains overwhelming evidence that the bank would seek to avoid attracting large numbers of people on low or fixed incomes."

She said each branch was expecting to spend only 75 minutes a day on face-to-face banking business.

Mr Anderton said the bank would offer fees "far below the current market levels."

"Mrs Shipley knows that the full picture cannot be released by the Government because it would disclose the bank's full pricing strategy to its competitors months before it was operational.

"Her actions are thoroughly irresponsible."

He accused Mrs Shipley of commercial sabotage for political gain in warning people not to put their money in the bank unless it received a Government guarantee.

Greens co-leader Rod Donald described Mrs Shipley's warnings as "scaremongering" and reaffirmed his party's support for legislation raising about $75 million towards the bank's set-up costs.

The cabinet is expected to make a final decision in favour of the bank on Monday.

It will offer full retail banking services, including mortgages, and set fees about 30 per cent lower than those charged now by the big commercial banks.

The bank is expected to open for business this year and operate through 320 existing NZ Post retail outlets.