Tuesday, August 05, 2008

Kiwibank really an asset?

No Minister thinks not.

$340 million of taxpayers' money has been poured into it. A profit of $48.5 million has ensued so far. However, it has probably squeezed out private sector competition, like TSB, like PSIS and building societies which could do the same.

So why not let NZ Post be a postal operator and you may as well sell that too. Postal business is under increasing competition from the private sector, and of course the internet. It is starved of capital to grow.

Again - no debate, no discussion, nothing.

2 comments:

Heine said...

It most certianly isn't an asset. How much taxpayers money went into it to start it up and how much does it use in running costs?

Now put it together and ask any leftie (or Nat!) if they would use that money to help sick people get off waiting lists or to fund a "bank".

Am enjoying all these posts mate, sounds like you're as annoyed as I am! :)

Anonymous said...

As someone who was closely involved with Kiwibank, I can confirm that at least for the first couple fo years, Kiwibank has been charged an internal transaction fee less than the real cost of the retail branch processing the transaction.

Since that time, the NZ Post Retail Group has been transferred to become part of Kiwibank (and so KiwiBank is also likely to gain the significant level of profit of the NZ BillPay services). As these have been in the same order as the reported profit from KiwiBank, I would not be surprised if Kiwibank was not making any profit at all from its banking services !!!