KEY POINTS:
Kiwibank plays a significant role in keeping mortgage rates down and has kept some of the bigger banks from closing their branches outside the cities, said Consumer New Zealand CEO Sue Chetwin.
She said if Kiwibank was sold to an off-shore company, the internationally owned banks would have "an even more cosier relationship then they do now".
"Kiwibank mainly targets more modest or low income people but it has actually been very competitive in what it does," Ms Chetwin said.
Her comments follow National deputy leader Bill English's "secret plan" to sell Kiwibank, recorded at the party's conference at the weekend.
"Despite what the critics said and that Kiwibank was always going to be a bit of a risk, it has actually worked. I think the bank is held in high affection amongst Kiwis," Ms Chetwin said.
Progressive party leader Jim Anderton said today that Mr English's comments show the National Party know Kiwibank is successful but that because some party supporters are "angsty" about a government owned bank, it would be sold.
TV3 last night played a recording of Mr English apparently answering a question from someone about whether his party would sell Kiwibank.
"Well eventually, not now," Mr English was heard to reply.
Mr Anderton said today: "National's secret plan is to use the proceeds of a Kiwibank sale to help pay for tax cuts and a new Think Big programme.
"This is irresponsible. An asset can only be sold once, but spending goes on year after year. Selling assets to buy the groceries doesn't make sense."
He said Kiwibank, now six years old, has returned millions of dollars of profit to the New Zealand government and attracts about 2000 new customers each week.
He said the bank has also provided real competition to the sector in New Zealand.
"Since the first Kiwibank branch opened in Palmerston North, not one single branch of any bank has closed, not one," he said.
Labour has also seized on the audio recording as evidence of a secret agenda to sell state assets.
Mr English later reiterated National's policy not to sell any state assets in its first-term in power, but Finance Minister Michael Cullen argued the recording was a "serious blow" to the credibility of Mr English and National Party leader John Key.
"It is clear that despite what John Key has told New Zealanders, National knows it would not keep Kiwibank in Kiwi ownership."
Mr English said in the audio recording on the Scoop website: "Well eventually but not now. It's working. Our supporters get a bit angsty but it's working."
National Party policy is no state asset sales in its first term.
Mr Key said today there was no contradiction between the policy and what Mr English said.
"National's made it clear we won't be selling assets in our first term. If there's any change to that position ... we will go and seek that mandate by going out and asking the voters of New Zealand whether they support a particular policy or not," he told Radio New Zealand this morning.
"There's never going to be a blanket change made by National without that support of the public when it comes to assets."
Asked if selling Kiwibank would be on the agenda for the following election, Mr Key said: "I don't think you can expect that to be on the agenda ... I wouldn't jump to any conclusions."
He said the last time the party discussed the idea was before the 2005 election and then decided to support it.
Mr English also said his comments were not inconsistent.
"There's no issues of public trust our position is quite clear."
In other comments on the recording Mr English talked about "Labour-plus voters" who wanted to keep what they had under Labour while "that nice Mr Key" would give them more. He said if National had been in Government "we would've had something like Working for Families but not the same. We would've given them quite a bit of cash in the hand."
He said when governments gave the public cash there was high marginal tax: "You can't get around it".
In a statement last night Finance Minister Michael Cullen said Mr English's comments were a blow to his and Mr Key's credibility.
"This would be bad news for our economy and raises questions about what other public assets National may ready for the auction block if elected," he said.
"This is cynical, dirty politics and shows that while the face at the front of National may have changed, nothing else has."
