Latest / Best of Business / Scott Simpson: Commerce Minister on the Government scrapping in-store card surcharges

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Scott Simpson: Commerce Minister on the Government scrapping in-store card surcharges · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks EDB. Follow
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  Speaker 2: Right back to making stuff cheaper. So far this week
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  Speaker 2: we've had more products in the building sector coming to market,
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  Speaker 2: which is good. And now the fees associated with the
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  Speaker 2: old tap and go to the card here excuse me card
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  Speaker 2: transactions are generally being banned now. Scott Simpson is the
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  Speaker 2: Commerce and Consumer Affairs Minister and he's in charge of
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  Speaker 2: all of this needs with Uscott. Morning to you, morning Mike.
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  Speaker 2: Are you disappointed in the reaction from all the people
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  Speaker 2: going I'm just going to pass the cost on.
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  Speaker 3: Well you I am actually because I think that this
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  Speaker 3: is a real wind for New Zealand consumers and actually
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  Speaker 3: it's a win for New Zealand businesses as well. Making
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  Speaker 3: things simple should be what is part of being a
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  Speaker 3: customer being in business in New Zealand.
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  Speaker 2: This is a cost on business though, isn't it.
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  Speaker 3: Absolutely, But in the same way that wages, rent, insurance,
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  Speaker 3: electricity are costs on businesses. My view is that the
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  Speaker 3: price you see on the shelf should be the ice
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  Speaker 3: you pay at the till.
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  Speaker 2: Now, why didn't you whack the banks, because.
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  Speaker 3: This relates to what is referred to as interchange fees,
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  Speaker 3: and the ComCom Commerce Commission made some changes a week
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  Speaker 3: or two ago. Now they are lowering the interchange rate
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  Speaker 3: by regulation that'll come into effect in December, and then
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  Speaker 3: we are announcing this ban on surcharges in conjunction with that.
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  Speaker 3: So it's not directly related to the banks, but that's
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  Speaker 3: something we're always looking at and will be front of
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  Speaker 3: mind as we move forward on the legislation on this.
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  Speaker 2: So do explain it, because I think that part got missed.
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  Speaker 2: I on Nicole a post cab yesterday tried to explain
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  Speaker 2: it the best you could, but this is I think
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  Speaker 2: most people have missed this news. So the interchange fees
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  Speaker 2: that the Commerce Commission told the banks that they were
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  Speaker 2: too high. Could you not have done more as a
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  Speaker 2: government towards the banks as opposed to towards the dairy owner.
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  Speaker 3: Well, that's a matter for the Commerce Commission. It's the
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  Speaker 3: Commerce Commission that regulates to change fees, so they'll be
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  Speaker 3: watching very carefully this reaction as well, and I'm sure
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  Speaker 3: that in the future, maybe sooner than we think, they
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  Speaker 3: might have another look at it.
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  Speaker 2: Okay, So when you say sooner than they think you
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  Speaker 2: know something's coming.
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  Speaker 3: Yes, well not necessarily, but the Communce Commission members they
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  Speaker 3: read and take into account media and public response just
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  Speaker 3: like you and I do.
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  Speaker 2: Okay, the looseness around fees at retail level. Is there
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  Speaker 2: anything stopping this actually happening? I mean, good on you
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  Speaker 2: for making the announcement. Yes, it should work, but I
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  Speaker 2: mean if he wants to charge one percent or two
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  Speaker 2: percent or through it, what's stopping them.
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  Speaker 3: Well, that's why we need some legislative change, and that's
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  Speaker 3: why it's going to take a little bit longer than
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  Speaker 3: I would want to implement this. It'll be probably sometime
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  Speaker 3: before May of next year that these little stickers and
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  Speaker 3: things are banned.
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  Speaker 2: Is that as fast as you can go? Because that
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  Speaker 2: was the other supprise yesterday. I mean it's it's July
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  Speaker 2: five and you're saying twenty six.
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  Speaker 3: I'd like to go faster, and the Prime Minister indicated
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  Speaker 3: yesterday if we can go faster, we.
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  Speaker 2: Will, Okay, Well, good life, Well, that appreciate it. Scott Simpson,
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  Speaker 2: who's the Commerce and Consumer Fairs minisin
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