Latest / Best of Business / Heather du Plessis-Allan: I'm not convinced the Commerce Commission study will lead anywhere

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Heather du Plessis-Allan: I'm not convinced the Commerce Commission study will lead anywhere · Best of Business

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  Speaker 1: together do for cel.
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  Speaker 2: Here's something to celebrate, a something a little bit different.
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  Speaker 2: For once, for once, we've got a Commus Commission study
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  Speaker 2: that isn't going absolutely nowhere. Nikola Willis has today said
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  Speaker 2: she is going to do what the Commus Commission has
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  Speaker 2: recommended in the banking study out today, and she is
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  Speaker 2: going to do everything it's recommended, all fourteen recommendations. Now,
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  Speaker 2: this is a little surprise, isn't it, Because I think
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  Speaker 2: we've got very used to these studies coming out and
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  Speaker 2: pretty much nothing of substance being done. We had the
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  Speaker 2: petrol study, at the supermarket study, where at the construction
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  Speaker 2: industry study, and so you know, I was a little
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  Speaker 2: cynical about the banking study, but I was wrong. And
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  Speaker 2: what's even more surprising, I suppose, is that it's a
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  Speaker 2: center right government who are the ones often accused of
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  Speaker 2: cozying up to big business, who are actually the ones
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  Speaker 2: prepared to do the bulls thing here. So doesn't that
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  Speaker 2: make a nice change for once. Now as to whether
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  Speaker 2: it's actually going to make a difference, the jury is
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  Speaker 2: on this one. I mean recommendation number one, capitalizing Kiwi Bank.
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  Speaker 2: I love the idea of doing this. I think it's
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  Speaker 2: going to probably improve the bank. I think it will
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  Speaker 2: absolutely give Kiwi investors another productive asset to put their
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  Speaker 2: money into, and Kiwibank deserves basically to be given a
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  Speaker 2: chance to fly a bit more. And for those reasons alone,
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  Speaker 2: I'm stoked that Nikolawillis is committed to doing this, but
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  Speaker 2: I'm not convinced it's going to do what they wanted
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  Speaker 2: to do. I'm not convinced it's going to be the
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  Speaker 2: disruptor and add the competition that's needed. Too many people
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  Speaker 2: now who know a lot more about economics and finance
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  Speaker 2: than I do, have said it's not going to do it.
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  Speaker 2: It just still will not be big enough. Second recommendation
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  Speaker 2: is the open banking thing. Nikolai Willis again is committed
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  Speaker 2: to doing that, but again I haven't seen any evidence
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  Speaker 2: that this is the game changer. It's been sold as,
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  Speaker 2: if anything, especially out of Australia by the way they've
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  Speaker 2: done this, and if anything there, it's just been really expensive.
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  Speaker 2: It's cost about one point five billion dollars without apparently
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  Speaker 2: doing all that much for customers. Now, those are just
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  Speaker 2: two or fourteen recommendation and look, who knows, maybe in
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  Speaker 2: combination all of them put together will make a difference
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  Speaker 2: to competition. But as I say, jury still out. But
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  Speaker 2: still you can't fault the government for the fact that
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  Speaker 2: they're prepared to do what's recommended. And even if it
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  Speaker 2: doesn't affect competition as much as we like, at least
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  Speaker 2: we're getting on with doing something about Kiwibank, which frankly
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  Speaker 2: has been a long time coming.
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