Peters’ protectionist policy would sabotage most banks

During Question time yesterday Winston Peters showed just how dangerous his protectionist policies would be:

Rt Hon Winston Peters: Could I ask the Minister why he would prefer an open bank resolution scheme, which in part or wholly in extreme circumstances could see the depositor having all their money stopped from their use, rather than a very sound scheme announced by me in October 2008—[Interruption] Well, we were there before you even did the ballot, OK?

Mr SPEAKER: Order!

Rt Hon Winston Peters: In 2008. It would have this effect: it would have the effect of a Government guarantee for the first $100,000 of a deposit in a New Zealand – owned bank.

Hon STEVEN JOYCE: I could think of a number of issues with the member’s proposal immediately, because what he would be proposing to do would be to guarantee a certain number of deposits in a New Zealand – owned bank, which would mean that suddenly all the money would move, particularly in a difficult situation, like we have with the global financial crisis, from other banks that were not necessarily New Zealand – owned, and that would collapse the other banks, which I do not think would be in the interests of the financial stability of the New Zealand economy.

Rt Hon Winston Peters: They’re all foreign-owned.

Hon STEVEN JOYCE: Right, so we should actually—here is what Mr Peters is suggesting in a xenophobic way. It is that we should collapse all the foreign-owned banks into the New Zealand— thank goodness he was not in Cabinet during the global financial crisis.

Thank goodness, in deed.

Peters’ doesn’t appear to appreciate but a lot of the people he purports to represent would lose their savings if his misguided policy was implemented.

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