1 00:00:00,040 --> 00:00:02,440 Speaker 1: There are calls on the government to back off changing 2 00:00:02,440 --> 00:00:05,120 Speaker 1: the law to protect Bagassi banks. One hundred and seventy 3 00:00:05,160 --> 00:00:07,960 Speaker 1: thousand Kiwis are in a class action against ASB and 4 00:00:08,000 --> 00:00:12,240 Speaker 1: A and Z Allegedly these two banks breached respondible responsible 5 00:00:12,280 --> 00:00:14,880 Speaker 1: lending regulations. The only trouble is the government's about to 6 00:00:14,880 --> 00:00:17,280 Speaker 1: pass a piece of legislation that will unwind all of that. 7 00:00:17,320 --> 00:00:20,560 Speaker 1: Scott Russell is leading the class action and is with us. Now, Hey, Scott, 8 00:00:21,880 --> 00:00:24,759 Speaker 1: hi Heather, why is the government changing the law to 9 00:00:24,800 --> 00:00:26,560 Speaker 1: wipe these guys responsibilities here? 10 00:00:27,960 --> 00:00:31,920 Speaker 2: It's a good question. We can't understand that either aims 11 00:00:31,960 --> 00:00:35,560 Speaker 2: in ASB is saying that generally's under the law potentially 12 00:00:35,600 --> 00:00:39,440 Speaker 2: presents an existential risk to the economy. What we're saying 13 00:00:39,479 --> 00:00:42,000 Speaker 2: is that's just simply rubbish. There's no evidence of that, 14 00:00:43,120 --> 00:00:46,559 Speaker 2: and it seems the suspicion is that by mending the 15 00:00:46,680 --> 00:00:49,800 Speaker 2: law it's just national helping out the Australian banks in 16 00:00:49,800 --> 00:00:50,280 Speaker 2: this case. 17 00:00:50,440 --> 00:00:52,200 Speaker 1: Have the banks just lobbied them hard. 18 00:00:53,560 --> 00:00:56,319 Speaker 2: Seems to be the way. We've actually sought information from 19 00:00:56,440 --> 00:00:59,920 Speaker 2: NB and in the ministers about that lobbying and we 20 00:01:00,200 --> 00:01:04,039 Speaker 2: been rejected that that's been withheld from us. So we're 21 00:01:04,080 --> 00:01:06,720 Speaker 2: not able to see why this law has actually come 22 00:01:06,760 --> 00:01:07,240 Speaker 2: into place. 23 00:01:07,920 --> 00:01:10,240 Speaker 1: How much is each of these people You've got one 24 00:01:10,280 --> 00:01:12,480 Speaker 1: hundred and seventy thousand kiwis in this class action. How 25 00:01:12,560 --> 00:01:15,000 Speaker 1: much is each of them potentially standing to get from 26 00:01:15,040 --> 00:01:15,760 Speaker 1: the banks? 27 00:01:16,840 --> 00:01:22,120 Speaker 2: I can't representative plaintiffs. A due between sort of seven, ten, 28 00:01:22,319 --> 00:01:24,800 Speaker 2: fifteen thousand dollars each depends on the size of your 29 00:01:24,800 --> 00:01:27,200 Speaker 2: loan and the amount of interest you are paying over 30 00:01:27,200 --> 00:01:30,440 Speaker 2: the time period. But our estimate is it's going to 31 00:01:30,440 --> 00:01:33,080 Speaker 2: be in the hundreds of millions of dollars that ordinary 32 00:01:33,160 --> 00:01:35,400 Speaker 2: kiwis are due and compensation from their banks. 33 00:01:36,319 --> 00:01:40,000 Speaker 1: Okay, hundreds of million dollars, millions of dollars split between 34 00:01:40,040 --> 00:01:40,559 Speaker 1: the two banks. 35 00:01:40,640 --> 00:01:42,560 Speaker 2: Yeah, that's correct. 36 00:01:42,640 --> 00:01:45,040 Speaker 1: I mean, what's the existential threat? Those guys make what 37 00:01:45,080 --> 00:01:47,360 Speaker 1: like a billion dollars at a time in a year. 38 00:01:48,240 --> 00:01:49,760 Speaker 2: Well, that's what we're trying to work out as well, 39 00:01:49,760 --> 00:01:52,160 Speaker 2: because when you look at their balance sheets, they're making 40 00:01:52,200 --> 00:01:55,400 Speaker 2: over a billion dollars each year, which is flying straight 41 00:01:55,440 --> 00:01:59,200 Speaker 2: back into the Australian parent companies, which actually make almost 42 00:01:59,280 --> 00:02:00,360 Speaker 2: ten billion dollars the year. 43 00:02:01,200 --> 00:02:03,920 Speaker 1: Okay, what are the chances, like, how long have you 44 00:02:03,960 --> 00:02:06,680 Speaker 1: got to fight this before this piece of legislation has passed. 45 00:02:08,160 --> 00:02:10,320 Speaker 2: What was in just introduced to the House and it's 46 00:02:10,360 --> 00:02:13,359 Speaker 2: going to select committees shortly. So we're going to fight 47 00:02:13,400 --> 00:02:15,360 Speaker 2: it tooth and now the whole way because we just 48 00:02:15,360 --> 00:02:18,200 Speaker 2: don't think it's it's fair and we don't think it 49 00:02:18,200 --> 00:02:20,800 Speaker 2: api applies with the rule of law in New Zealand. 50 00:02:20,840 --> 00:02:22,120 Speaker 2: It's not what New Zealand's about. 51 00:02:22,360 --> 00:02:24,239 Speaker 1: What are the chances do you think who's the minister, 52 00:02:24,320 --> 00:02:27,960 Speaker 1: is it Scott Simpson? Now, Scott Simpson, yeahs commerce What 53 00:02:28,000 --> 00:02:29,480 Speaker 1: are the chances that he backs off? 54 00:02:31,040 --> 00:02:35,639 Speaker 2: I think pretty high. It doesn't even reading the Parliamentary 55 00:02:37,280 --> 00:02:41,320 Speaker 2: the legislation in Parliament, it says retrospectivity should not be 56 00:02:41,480 --> 00:02:45,360 Speaker 2: should not apply to any law. And they actually in 57 00:02:45,400 --> 00:02:48,440 Speaker 2: this new law have put in a little clause that 58 00:02:48,520 --> 00:02:51,760 Speaker 2: says the normal rules under the legislation don't apply to this. 59 00:02:53,120 --> 00:02:55,080 Speaker 1: All right, Scott, listen, thanks very much. I really appreciate 60 00:02:55,120 --> 00:02:56,800 Speaker 1: you talking us through. A best of luck fighting that 61 00:02:56,800 --> 00:02:59,280 Speaker 1: because it seems a no brainer. This is bizarre, isn't it. 62 00:02:59,280 --> 00:03:03,840 Speaker 1: Scott Russell, Director at Russell van Hout Goodness, I don't know, 63 00:03:05,000 --> 00:03:06,959 Speaker 1: by the way, put that one in for a chat 64 00:03:07,000 --> 00:03:08,840 Speaker 1: with Nikola Willis on Monday when she's with us on 65 00:03:08,880 --> 00:03:10,560 Speaker 1: the show, we'll ask her about that, because this seems 66 00:03:10,600 --> 00:03:12,320 Speaker 1: like a weird one that it's gonna be a hard 67 00:03:12,320 --> 00:03:14,240 Speaker 1: one for the government to defend because it comes down 68 00:03:14,320 --> 00:03:17,600 Speaker 1: to it's simply you're taking the side of four well, 69 00:03:17,600 --> 00:03:20,160 Speaker 1: in this case, two Australian banks against one hundred and 70 00:03:20,200 --> 00:03:23,400 Speaker 1: seventy thousand kiwis. How do you justify that? I'd love 71 00:03:23,400 --> 00:03:27,000 Speaker 1: to know the answer. For more from Heather Duplessy Allen Drive, 72 00:03:27,160 --> 00:03:30,519 Speaker 1: Listen live to news Talks. It'd be from four pm weekdays, 73 00:03:30,680 --> 00:03:32,880 Speaker 1: or follow the podcast on iHeartRadio.