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The National Party is further positioning itself as the cost of living party, challenging the Labour Government to set up a Parliamentary inquiry into retail banking regulation and competition.
The Green Party and ACT have supported the calls to put extra scrutiny on banks, which have reported major profits as people struggle with the high cost of living and mortgages rate hikes.
National’s finance spokesperson Nicola Willis refuted this was new territory for her party, which is traditionally against market interference.
She said her party has always “stood for everyday New Zealanders”.
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“We believe in strong markets and strong competition, and if we’re concerned that that’s not happening, we will always stand out to make sure people get a fair deal,” she said.
“I want the banks to be resilient. I want the banks to be strong, and I want there to be good competition. If there are excessive profits, because there is not proper regulation, that’s a concern.
She said the inquiry should not be done by the Commerce Commission, but instead should be “short” and “sharp”.
Among the questions she wanted to be answered was whether there were barriers to the market being competitive in New Zealand.
High-profile business leaders Sam Stubbs, founder of Simplicity KiwiSaver, and Tex Edwards, anti-monopolist and founder of 2degrees, have both called for a full market study.
The Reserve Bank of New Zealand Te Pūtea Matua has given tentative support for a full market probe.
ROBERT KITCHIN/Stuff
Nicola Willis says her party has always stood for the everyday New Zealander. (File photo)
“The Reserve Bank has said that they think that there are grounds for a market study by the Commerce Commission.
“They have highlighted the concern that interest rate rises for depositors haven’t risen as fast as for mortgage lenders, and I think when an authority of that standing and that independence is raising the alarm, we as politicians do well to listen.”
Chief economist Paul Conway said he thought a Commerce Commission market study into the retail banking sector might be warranted.
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