Finance Minister Bill English defended Australian-owned banks today as he continued to field questions in Parliament about the government's stance on the future ownership of Kiwibank.Green Party co-leader Russel Norman said Reserve Bank figures showed tha
Finance Minister Bill English defended Australian-owned banks today as he continued to field questions in Parliament about the government's stance on the future ownership of Kiwibank.
Green Party co-leader Russel Norman said Reserve Bank figures showed that in the five years to 2009 overseas-owned banks took about $9 billion out of New Zealand. He questioned what impact such a big loss of capital had had on the New Zealand economy.
During the recession in 2008 and 2009 banks had repatriated about 85 percent of profits back to Australia, Dr Norman said.
Mr English said it needed to be noted that through the recession the big Australian-owned banks were among the safest in the world and had played a part in helping New Zealand through hard times.
During the recession the banks appeared to have lent a lot of money to the New Zealand banking system, helping to provide mortgages and overdrafts. "So I'm a bit reluctant to criticise them for the last two years through the banking crisis."
Dr Norman, who is Australian born and bred, has been pressing Mr English on whether Kiwibank will end up in Australian hands following a recent comment Mr English made in Christchurch about Kiwibank potentially needing an injection of capital.
He rounded his questioning off today by asking if that were the case, would the government require the new owners to change its theme song from God Defend New Zealand to Advance Australia Fair or "Advance Australian Profits."
"I'd find that question easier to answer if it wasn't asked with an Australian accent," Mr English said.
He continued dismissing questions over a potential sale, saying there would be no sale of state-owned assets in the Government's first term and that no thought had been given to any sales or partial sales beyond that.
