Let banks float Kiwi operations in NZ - Morrison

Australian banks should float their New Zealand operations on the Kiwi stock exchange, so their performance is reflected on "an individual basis" rather than as part of a group, says Infratil founder Lloyd Morrison.

That would be good for staff and shareholders in New Zealand: "They will do well."

Mr Morrison hoped ANZ National would reconsider suggestions it might float the company, made when ANZ bought the National Bank in 2003 for $5.7 billion. At the time, the bank said a partial float would be considered by 2006, but it has never happened.

ANZ was now more focused on Asia, so it would be a good move to float the New Zealand operation, though Infratil would not be interested in banking as an investment, Mr Morrison said.

He is a strong advocate of New Zealand as a sovereign state, with the advantages of being next to Australia but "we hate mindless subordination to Australia because that does not benefit New Zealand or Australia". One country should not benefit at the expense of the other.

It was sad that decision-making in the big banks had been devolvedto Australia in the past 18 months, after many years of decision-making in New Zealand.

"That is a risk for New Zealand companies," he said. The standard applied in New Zealand was not the same as in Australia. "It also ignores the quality of decision-making here. New Zealand had produced some outstanding bankers, many of whom were now in Australia."

In business for more than 20 years, Mr Morrison founded HRL Morrison & Co in 1988, but is best known as the leader of infrastructure investment company Infratil.

Morrison & Co and Infratil had contributed to business in what they had done and in "willingness to debate issues that affect New Zealand".

- © Fairfax NZ News