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Speaker 1: News talks here b Barry Soapers he has senior political correspondent.

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Speaker 1: Good afternoon, Barry, afternoon, Ran, good to see you. Now

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Speaker 1: you've been having a look at two at this KPMG

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Speaker 1: report on our banking sector, the margins that we pay,

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Speaker 1: the margins that our banks earn here versus Australia, well.

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Speaker 2: Not only Australia, other countries as well. We're in the

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Speaker 2: middle to upper end in terms of the bank's profitability

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Speaker 2: if you look at because we've got four big Australian

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Speaker 2: banks operating in this country. Of course, they last year

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Speaker 2: made a net profit of seven point two two billion dollars,

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Speaker 2: which is extraordinary.

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Speaker 1: But they're big, they're big outfit.

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Speaker 2: Well no, no, but that's what they keep telling us.

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Speaker 1: They're tens of thousands of employees.

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Speaker 2: Yes they have all that, Yes, I know. And the

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Speaker 2: chief executives are back before the Select Committee at Parliament

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Speaker 2: this week. They're crying poor on their are three million

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Speaker 2: dollar salaries. I mean, it's a really tough area out there.

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Speaker 2: But if you look at the banks, the margin is

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Speaker 2: two point three four percent. Now that's the difference. The

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Speaker 2: ocr is three point seventy five percent. So that's what

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Speaker 2: they buy their money at and their margin is two

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Speaker 2: point three four percent, which would give you an interest

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Speaker 2: rate of around I guess six percent, and that's what

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Speaker 2: we should be paying in our mortgages. But you know,

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Speaker 2: I don't think everybody's paying well, we're probably getting closer

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Speaker 2: to six percent.

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Speaker 1: It depends what sort of It depends on your situation,

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Speaker 1: isn't it how much you're borrowing and what you.

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Speaker 2: Will well, yeah, right. The biggest problem here if you

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Speaker 2: listen to the banks, and it's been reflected by some

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Speaker 2: in political circles as well, is the capital that they

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Speaker 2: have to retain to make sure that if times do

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Speaker 2: get tough, that the depositors funds will be looked after

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Speaker 2: and the like. So when you look at other countries,

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Speaker 2: it's pretty high in New Zealand, mainly because our economy

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Speaker 2: is an a pretty risky state.

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Speaker 1: At the moment, that's right, and we're a small country

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Speaker 1: and we're one earthquake away from everything going to hell

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Speaker 1: in a handbasket. So you know, yes, they might be

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Speaker 1: making a little bit more money here, but they in theory,

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Speaker 1: we are safer here because they've got the capital.

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Speaker 2: But no bank has fallen over here either, and The

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Speaker 2: thing is that with the new governor of the Reserve

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Speaker 2: Bank coming in, because the Reserve Bank sets those capital requirements,

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Speaker 2: maybe they'll be a bit more liberal than certainly that

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Speaker 2: would appease some of the political circles.

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Speaker 1: Now, speaking of political circles, and she did it again.

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Speaker 1: This is on with on Breakfast on Hosking this morning.

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Speaker 1: Her foot firmly buried in her mouth was what.

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Speaker 2: I couldn't believe it when I heard it. It was

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Speaker 2: like regular slot on Wednesday, Mark Mitchell with Mark Mitchell.

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Speaker 2: She was moaning about what a waste time the eighty

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Speaker 2: hours were for hearing submissions on the Treaties Principal Bill

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Speaker 2: when it was going to be voted down. Well, it

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Speaker 2: was a great, great piece of radio in my you

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Speaker 2: the woman Chris Hopkins rates promoting Ginny Anderson to Labour's

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Speaker 2: finance team last week and making her responsible for treaty negotiations,

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Speaker 2: made a fool of herself when taking issue with Mitchell

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Speaker 2: over the Treaties bill. Ever, listen, Labor took some of

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Speaker 2: the bills through themselves when they're in Parliament.

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Speaker 1: That got killed off as well.

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Speaker 3: So but I think that you name it was.

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Speaker 2: A treaty it was a treaty Principal's Bill that Labor

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Speaker 2: brought into the House as well through the process.

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Speaker 1: Making it.

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Speaker 2: Then check your history, don't You don't even know the

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Speaker 2: treaties negotiated.

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Speaker 4: Didn't know.

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Speaker 2: I was right.

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Speaker 3: Labor did not support it, honestly.

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Speaker 2: That was her coming back after the break. So I

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Speaker 2: was right all along. Well, in fact, Jenny, go back

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Speaker 2: and have a listen, as all our listeners have heard,

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Speaker 2: you were wrong.

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Speaker 1: He just finally the Maori Party, staying on a similar

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Speaker 1: vein head the Malori Party goes into bat for finner

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Speaker 1: order agencies. These are the ones who've lost their contracts.

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Speaker 1: We've heard about it in the last couple of days.

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Speaker 1: One of them, of course, belongs to or is run

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Speaker 1: by John Tammaheady, their president.

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Speaker 2: It's a big it's a big contract and the person

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Speaker 2: firing the questions today was the Maori Parties co leaded

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Speaker 2: every rewa Packer. She was accused in parliament today of

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Speaker 2: asking questions on behalf of her party's president, John Tamma Harry,

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Speaker 2: who had one of the big contracts. But Louise Upston,

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Speaker 2: standing in for the minister, says the transition to the

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Speaker 2: new providers will be very carefully managed.

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Speaker 3: The Department of Prime Minister in Cabinet and the Public

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Speaker 3: Service Commission are working closely with Tapun Corkery to manage

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Speaker 3: the transition and to ensure a smooth continuity of service

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Speaker 3: for the final receiving services.

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Speaker 4: Who does a provider that has banked over one hundred

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Speaker 4: million dollars in profit not suggest that the taxpayers money

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Speaker 4: has not gone for the purposon which was given in

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Speaker 4: the first place.

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Speaker 3: This is a process that Puny Corcady have run. As

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Speaker 3: recommended by MB that every contract that the government has

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Speaker 3: should go to market every four to five years to

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Speaker 3: test the market to see if there are other providers available.

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Speaker 4: We've got a member asking pointed questions about a process

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Speaker 4: in which one of the major losers appears to be

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Speaker 4: a prominent member of her own political party. I just

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Speaker 4: wonder if there's any need to declare such a conflict

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Speaker 4: of interest before asking such questions.

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Speaker 2: Well, the Speaker decided there wasn't any need to do it,

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Speaker 2: And I didn't planny of Nriwapacker's questions because they are

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Speaker 2: all superficial really, and they didn't elicit anything but the

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Speaker 2: fact that she's clearly upset about the contract being lost,

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Speaker 2: and there is certainly, in my view, something of a

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Speaker 2: conflict there when you consider she's asking about a contract

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Speaker 2: that or one of the contracts that was held by

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Speaker 2: the party president.

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Speaker 1: John tammytink you, reckon, Verry, Thank you for that. Barry Soper,

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Speaker 1: Senior political correspondent Here at news TALKSZB.

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