Minister criticises Australian banks’ service level in rural NZ

WELLINGTON: Regional Economic Development minister Shane Jones says Australianowned banks are putting profits ahead of their responsibility to rural areas.

Mr Jones has echoed concerns of the bank workers’ union over branch closures.

‘‘If the Aussie banks are going to continue to profit at $5 billion a year then in my view it’s not unreasonable they be required to maintain a level of service,’’ Mr Jones told RNZ’s Morning Report yesterday.

‘‘I can guarantee you that the Aussieowned banks are offering a range of services that are more efficient and cheaper to their own people than we’re putting up with in provincial New Zealand.

‘‘The Aussies own our banks. They take, in my view, a skinflint approach.

‘‘Their profits over the last 10 years have grown by 75%.

‘‘I do believe with that level of profit they have an obligation to maintain an extensive level of service,’’ Mr Jones said.

The minister said he planned to speak to Reserve Bank Governor Adrian Orr to ‘‘establish the facts’’ about the requirements of banking licences and would then consider policy options.

Mr Jones has previously taken aim at dairy cooperative Fonterra, telling it in June to focus less on politics and more on justifying the money it had lost overseas.

And in a spat with Air New Zealand in March he said the national carrier had been shortchanging services to the regions.

Mr Jones suggested yesterday the head of the new Prime Minister’s Business Advisory Council, Air New Zealand chief executive Christopher Luxon, was a celebrity appointment.

He said he had ‘‘no time for celebrities in business’’.

‘‘He is a celebrity — I’m stating a fact . . . He in the past brought [former US president Barack] Obama over here — there’s many photos of that level where busi ness meets celebrity culture.

‘‘The Prime Minister has supported him and I will say nothing that is a note of dissent from the Prime Minister because I thoroughly support her.

‘‘We will ensure that as we go forward he is surrounded by people that are of more earthy dimensions.’’