Labour members of Parliament’s Finance and Expenditure Committee have voted against opening an inquiry into competition and regulatory issues in New Zealand’s retail banking sector, National’s Finance spokesperson Nicola Willis says.

“I’m disappointed Government MPs have rejected my good-faith proposal for a short, sharp inquiry to get New Zealanders the timely answers they want about competition in New Zealand banking services.

“Instead, Government MPs have voted down my proposal for an inquiry, claiming a Commerce Commission market study is likely to occur. If that is the case, the Minister of Commerce should confirm it immediately.

“This was never an either/or proposition. An open, transparent select committee inquiry would have been a pragmatic step, equipped with powers to summon witnesses and to require the production of information from banks and others. Evidence would have been heard in public, not in the closed interview rooms of a government agency.

“A select committee inquiry could have done its business with speed, transparency and with immediate accountability to New Zealanders. Resulting recommendations could have been wide-ranging and could have proposed further examination or action by other bodies where necessary.  

“Furthermore, a select committee would not have prevented a Commerce Commission inquiry occurring later – if warranted.   

“Instead, Labour MPs have shown disregard for the role of Parliament, kicking these serious issues to touch and instead delegating responsibility to the Commerce Commission. 

“New Zealanders feeling the pain of high supermarket costs, high building costs and expensive petrol know too well that market studies are slow to provide answers, let alone action.

“I’m grateful to the Act and Green parties for speaking out in support of the role Parliament could have played here. It’s disappointing Labour MPs used their majority to duck for cover.”