Call for alternative Kiwibank future - as a co-operative

'The big five trading banks are owned by Australians. Kiwis are working their butts off for their profits.' – Peter Macdougall.

Related Links

Old-fashioned set-up has last augh Co-ops fight to retain share assets

Relevant offers

AN ALTERNATIVE plan for Kiwibank, one that will both answer its capital needs and retain it in New Zealand ownership, is being quietly promoted in the halls of power.

The New Zealand Cooperatives Association wants the bank turned into a co-operative with shares sold to customers, and has already communicated the idea to Finance Minister Bill English.

Peter Macdougall, the chairman of the association, said English's response was quick: "You wouldn't be interested in KiwiRail, would you?"

But the association is serious, suggesting the government could retain 40% of the bank. Co-operative shares would be issued to customers as investors for the remaining 60%. As part of the plan, New Zealand's massive co-operative sector could choose to move its business to the bank and also invest in it, Macdougall said.

In the case of the larger co-operatives, which use syndicates of banks, Kiwibank could be added to those syndicates, he said. "It's a New Zealand bank put there by New Zealanders for New Zealanders. The big five trading banks are owned by Australians. Kiwis are working their butts off for their profits."

Macdougall points to Rabobank, a co-operative that specialises in the rural market. New Zealanders don't get to join, however, as it is a subsidiary of a Dutch company.

Rabobank is one of many that operate as co-operatives, including France's Credit Agricole Group and Group Banques Populaires, Germany's WGZ Bank and Korea's Community Credit Cooperative.

The best way for the government to offer Kiwibank to "mum and dad" investors is to offer it to the bank's customers, now numbering 700,000, as a co-operative business, Macdougall said.

A spokesman for the finance minister says the government has not considered such matters.

"Its position on assets is very clear: there will be no asset sales in this term of parliament," spokesman Craig Howie said. "If that position were to change, the government would say so and campaign on it at the next election."

Bruce Thompson, Kiwibank's external relations manager, said he had heard suggestions that Kiwibank shares could be offered to New Zealand Superannuation Fund investors and of a partial share float, but this was the first he has heard of the co-operative idea. He said issues of ownership will be decided by the owners. "Whatever happens will be done to us, not by us."

- © Fairfax NZ News