Cullens' nest egg goes to Kiwibank

By VERNON SMALL

Finance Minister Michael Cullen's own measure, he has just done a very strange thing.

A year ago he said he would not switch to the state-owned Kiwibank. "I've stuck with the BNZ through the late 80s and early 90s. It would be a very strange thing to move now."

But yesterday, in a show of support for the Alliance's policy trophy, Dr Cullen said he and wife Anne Collins would switch their personal accounts to the NZ Post-owned bank.

Prime Minister Helen Clark has said she will not transfer because her present bank is closer than the nearest NZ Post outlet.

Dr Cullen said yesterday that when the Government agreed to give an $83 million stake to NZ Post to start the venture, it was confident it would be a success.

"Nothing has happened since to disturb that view. Despite a sustained campaign of destabilisation from National and Act, Kiwibank has been well received by the public and has forced the established banks to compete with its products."

He said the bank would have to succeed or fail on its own merits as it would not have continuing Government financial support or a Government guarantee.

Deputy Prime Minister Jim Anderton yesterday made his first significant deposit into the bank he championed, handing a cheque to Kiwibank chief executive Sam Knowles in the Beehive.

He would not disclose the amount, but onlookers said it was for $25,000.

Mr Anderton said he had hoped to make the deposit, which was a substantial portion of his private savings, at a branch in his Wigram electorate but the first branch there would not open until early April.

"I am putting my own money where my mouth is."

Mr Anderton said he and his wife would eventually transfer all their banking business to Kiwibank.

Meanwhile, Act MP Rodney Hide said callers to the bank's freephone number were given the name and address of their nearest Kiwibank branch and when it would open.

But many of the outlets would not open.

"NZ Post franchisees have been horrified to learn that the names of their stores have been given out when they have explicitly refused NZ Post's offer of a bank in their store."

He had been contacted by franchisees concerned about NZ Post misleading customers and putting them in an awkward position, he said.

Kiwibank spokesman Bruce Thompson admitted that the bank might have been "overly helpful or maybe even overly enthusiastic" in specifying outlets.

The bank was "softening the level of information" it gave out.

nzherald.co.nz/kiwibank