Below is Stuart Smith’s response.
Stuart Smith
National MP
Kaikoura
When you look at banking sector profits, it is critical to understand the underlying reasons of why they are making such profits.
Part of understanding why the banks have made such a profit would be having an independent investigation into the Reserve Bank, and being open and transparent with New Zealanders on why they made the decisions they did.
The Reserve Bank printed and borrowed excessive amounts of money during and following the pandemic, which has resulted in the high inflation we are seeing now and increased Official Cash Rate. That has meant Kiwi households are in a financially tough position, and the future looks even tougher.
New Zealanders deserve to know why they are facing tough times, and equally why their banks are making record profits whilst they are struggling, and an inquiry into the actions of the Reserve Bank will at least help to provide some of those answers.
Open banking happens in other parts of the world and, frankly, New Zealand’s been way too slow in embracing it. It makes it easier for customers to compare mortgage rates, apply for loans and switch banks, a bit like you can do already with your power company.
However, any suggestion that this proposal is somehow a way of dealing with the cost-of-living crisis, is far off the mark.
New Zealanders are going backwards under Labour. Families are facing pressure at the pump, mayhem with their mortgages and a crisis at the checkout. Wages are not keeping up with inflation, the cost-of-living crisis is getting worse and the government has done nothing to get it under control.
Instead of coming up with a plan, the government has put the blame on supermarkets, petrol companies, banks, Covid or the war in Ukraine – anyone but themselves.
Wasteful government spending has contributed to making inflation higher than it would otherwise have been. They must also urgently fix our broken immigration settings that mean there’s a shortage of workers, which is pushing up prices across the economy.
The economic forecasts are worrying, and New Zealanders need a competent government and an economic plan to get them out of this mess. More of the same: more spending, more bureaucrats, more tax, will lead to worse outcomes.
National has a plan to fight inflation. We will restore discipline to government spending, reduce unnecessary costs to businesses, get rid of the bottlenecks in the economy that are slowing growth, adjust tax brackets to allow Kiwis to keep more of their hard-earned money and make sure the Reserve Bank is focused solely on controlling inflation.
We will manage the economy better and deliver better public services for all New Zealanders.
