Peck Mark: Questions for Oral Answer — Questions to Ministers 
Peck Mark: Questions for Oral Answer — Questions to Ministers 
[Volume:611;Page:8741] 
1. MARK PECK (NZ Labour—Invercargill) 
 to the  
Minister of Finance 
: Has he received any reports on his powers in relation to the potential sale of the National Bank? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 I have very very little by way of effective powers of intervention in this case and I am amazed that anyone would suggest differently especially someone with a background in commercial law as Mr Stephen Franks has. 
Mark Peck 
: What tests will the Minister apply to any sale? 
Hon Dr MICHAEL CULLEN 
: The Reserve Bank will be required to give written consent and it can impose conditions—for example local incorporation—to protect the financial system in the event of bank failure. The Commerce Commission will determine whether any purchase is anti-competitive. The Overseas Investment Commission will decide whether the potential purchasers meet the prudential requirements of the Overseas Investment Act. 
Dr Don Brash 
: Has the Minister taken any steps at all to assist the Reserve Bank to protect the interests of the New Zealand banking sector against the adverse effects of Australian banking law which of course gives a preference to Australian depositors vis-à-vis the depositors of other countries? 
Hon Dr MICHAEL CULLEN 
: I have raised that issue with the Australian Treasurer. The Australian Government has indicated it is not likely to be making any changes in that regard. 
Stephen Franks 
: Can he confirm that after Dr Rod Carr former deputy governor of the Reserve Bank publicly described Australian’s banking laws as “predatory regulation” the Reserve Bank asked him to support at Government to Government level our bank’s efforts to protect New Zealand depositors with Australian banks; and until there is more than zero movement from Australia why should Aussies who want the National Bank not be told “transaction declined”? 
Hon Dr MICHAEL CULLEN 
: The member has not listened to what I said. The Minister of Finance does not make those decisions. Those decisions are made by the Reserve Bank and when the member asks me in public to tell the Reserve Bank what to do in this regard I assume we would apply the same criteria to the operation of monetary policy. 
Gordon Copeland 
: Does the Minister agree that the response of the Australian Government runs counter to the spirit of closer economic relations since he was simply exercising I think his responsibility to ensure that New Zealand depositors do get equal treatment in the event that an Australian-owned bank purchases the National Bank? 
Hon Dr MICHAEL CULLEN 
: Certainly my preference would be to see that issue dealt with directly and indeed by means of a combined Australia - New Zealand approach on those matters. In the absence of that of course the Reserve Bank thinks the legislation passed quite quickly through this House recently now has greater substantial powers to deal with the issue by other means. 
Mark Peck 
: What powers if any does the Minister have under the Overseas Investment Act? 
Hon Dr MICHAEL CULLEN 
: I have the right to refuse approval if the purchase involves sensitive land. I am advised that the National Bank owns no such land. I could call in a delegation from the Overseas Investment Commission in relation to prudential criteria. These other purchasers must have business experience demonstrated financial commitment and be of good character. Without prejudicing what the Overseas Investment Commission may decide I think any New Zealand Minister of Finance who declared the ANZ Bank did not have business experience and demonstrated financial commitment and was not of good character would be risking some form of reputational response.