INDEPENDENT NEWS

Piggy-Bank?

Published: Thu 11 Dec 2003 02:57 PM
Piggy-Bank?
"With all the spin surrounding Kiwibank, it is easy to forget that this bank is a taxpayer subsidised organisation which is making a loss. If its true costs are taken into account, I don't think we'll ever see a profit," said Brian Connell, National's Commerce spokesman.
"At the Commerce Select committee this morning, Kiwibank chairman Jim Bolger and CEO Sam Knowles provided assurances that they had segmented their customer base and knew which ones were profitable and which were making a loss." "80% were profitable! Things must have changed a lot in ten years, because when Westpac segmented their customer base in 1994, they found that only about 10% were profitable," said Mr Connell.
"I must be missing something - Westpac was making a profit and Kiwibank is making a loss!"
"It gets worse - Kiwibank is including money as profit which was already being transacted through New Zealand Post long before 'Dinosaur' Jim Anderton ever dreamed up Kiwibank!"
"'Bricks and mortar' branch network s are precisely what the major banks are moving away from because they are too expensive. Yet this is the very model that Kiwibank is predicated on."
"Despite Mr Bolger's assurances to the contrary, I remain unconvinced that Kiwibank pays a market rental to New Zealand post for use of their premises."
"I intend to scrutinise Kiwibank's financial accounts in detail and I doubt that anyone will be surprised to discover that New Zealand Post is subsidising Kiwibank."

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