1 00:00:00,120 --> 00:00:03,480 Speaker 1: Right back to making stuff cheaper. So far this week 2 00:00:03,520 --> 00:00:05,600 Speaker 1: we've had more products in the building sector coming to market, 3 00:00:05,640 --> 00:00:07,600 Speaker 1: which is good. And now the fees associated with the 4 00:00:07,600 --> 00:00:09,600 Speaker 1: old tap and go to the card chair excuse me 5 00:00:09,840 --> 00:00:12,959 Speaker 1: card transactions are generally being banned now. Scott Simpson is 6 00:00:13,000 --> 00:00:15,160 Speaker 1: the Commerce and Consumer Affairs Minister and he's in charge 7 00:00:15,160 --> 00:00:16,799 Speaker 1: of all of this needs with us. Scott, morning to 8 00:00:16,840 --> 00:00:20,000 Speaker 1: you morning Mike. Are you disappointed in the reaction from 9 00:00:20,000 --> 00:00:21,959 Speaker 1: all the people going I'm just going to pass the cost. 10 00:00:21,840 --> 00:00:25,360 Speaker 2: On, Well, yes i am, actually because I think that 11 00:00:25,440 --> 00:00:27,800 Speaker 2: this is a real wind for New Zealand consumers and 12 00:00:27,840 --> 00:00:30,240 Speaker 2: actually it's a win for New Zealand businesses as well. 13 00:00:30,400 --> 00:00:34,960 Speaker 2: Making things simple should be what is part of being 14 00:00:35,000 --> 00:00:37,120 Speaker 2: a customer being in business in New Zealand. 15 00:00:37,479 --> 00:00:39,479 Speaker 1: This is a cost on business though, isn't. 16 00:00:39,280 --> 00:00:45,440 Speaker 2: It Absolutely, But in the same way that wages, rent, insurance, 17 00:00:45,600 --> 00:00:49,239 Speaker 2: electricity are costs on businesses. My view is that the 18 00:00:49,320 --> 00:00:51,880 Speaker 2: price you see on the shelf should be the price 19 00:00:51,920 --> 00:00:52,760 Speaker 2: you pay at the till. 20 00:00:52,960 --> 00:00:54,760 Speaker 1: Now, why didn't you whack the banks? 21 00:00:56,440 --> 00:00:59,440 Speaker 2: Because this is related to what is referred to as 22 00:00:59,520 --> 00:01:03,680 Speaker 2: interchange fees, and the CoCom Commerce Commission made some changes 23 00:01:03,720 --> 00:01:07,160 Speaker 2: a week or two ago. Now they are lowering the 24 00:01:07,280 --> 00:01:11,880 Speaker 2: interchange rate by regulation that'll come into effect in December, 25 00:01:12,160 --> 00:01:15,360 Speaker 2: and then we are announcing this ban on surcharges in 26 00:01:15,920 --> 00:01:19,400 Speaker 2: conjunction with that. So it's not directly related to the banks, 27 00:01:19,440 --> 00:01:21,640 Speaker 2: but that's something we're always looking at and will be 28 00:01:22,160 --> 00:01:24,440 Speaker 2: front of mind as we move forward on the legislation 29 00:01:24,520 --> 00:01:24,720 Speaker 2: on this. 30 00:01:24,959 --> 00:01:27,560 Speaker 1: So do explain it, because I think that part got missed. 31 00:01:27,560 --> 00:01:29,759 Speaker 1: I know Nicole of post Cab yesterday tried to explain 32 00:01:29,840 --> 00:01:31,720 Speaker 1: the best you could, but this is I think most 33 00:01:31,720 --> 00:01:35,080 Speaker 1: people have missed this news. So the interchange fees that 34 00:01:35,280 --> 00:01:38,760 Speaker 1: the Commerce Commission told the banks that they were too high? 35 00:01:39,200 --> 00:01:42,120 Speaker 1: Could you not have done more as a government towards 36 00:01:42,160 --> 00:01:45,120 Speaker 1: the banks as opposed to towards the dairy owner. 37 00:01:46,360 --> 00:01:49,920 Speaker 2: Well, that's a matter for the Commerce Commission. It's the 38 00:01:49,960 --> 00:01:54,559 Speaker 2: Commerce Commission that regulates interchange fees, so they'll be watching 39 00:01:54,680 --> 00:01:57,000 Speaker 2: very carefully this reaction as well, and I'm sure that 40 00:01:57,120 --> 00:01:59,800 Speaker 2: in the future, maybe soenter than we think, they might 41 00:01:59,840 --> 00:02:00,640 Speaker 2: have another look at it. 42 00:02:00,720 --> 00:02:02,440 Speaker 1: Okay, So when you say sooner than they think, you 43 00:02:02,520 --> 00:02:03,280 Speaker 1: know something's coming. 44 00:02:03,360 --> 00:02:08,320 Speaker 2: Yes, well, not necessarily, but the Commerce Commission members they 45 00:02:08,600 --> 00:02:11,400 Speaker 2: read and take into account media and public response, just 46 00:02:11,440 --> 00:02:12,040 Speaker 2: like you and I do. 47 00:02:12,320 --> 00:02:16,440 Speaker 1: Okay, the looseness around fees at retail level. Is there 48 00:02:16,480 --> 00:02:19,080 Speaker 1: anything stopping this actually happening? I mean, good on you 49 00:02:19,120 --> 00:02:21,000 Speaker 1: for making the announcement. Yes, it should work, but I 50 00:02:21,000 --> 00:02:22,680 Speaker 1: mean if he wants to charge one percent or two 51 00:02:22,680 --> 00:02:24,040 Speaker 1: percent of through it, what's stopping them. 52 00:02:25,600 --> 00:02:28,880 Speaker 2: Well, that's why we need some legislative change, and that's 53 00:02:28,919 --> 00:02:30,440 Speaker 2: why it's going to take a little bit longer than 54 00:02:30,520 --> 00:02:33,520 Speaker 2: I would want to implement this. It'll be probably sometime 55 00:02:33,520 --> 00:02:36,600 Speaker 2: before May of next year that these little stickers and 56 00:02:36,639 --> 00:02:37,280 Speaker 2: things are banned. 57 00:02:37,400 --> 00:02:39,360 Speaker 1: Is that as fast as you can go? Because that 58 00:02:39,440 --> 00:02:42,120 Speaker 1: was the other surprise yesterday. I mean it's it's July 59 00:02:43,600 --> 00:02:45,320 Speaker 1: five and you're saying May twenty six. 60 00:02:46,320 --> 00:02:48,680 Speaker 2: I'd like to go faster, and the Prime Minister indicated 61 00:02:48,760 --> 00:02:50,600 Speaker 2: yesterday if we can go faster, we will. 62 00:02:50,919 --> 00:02:53,080 Speaker 1: Okay, Well, good luck with that. Appreciate it. Scott Simpson, 63 00:02:53,240 --> 00:02:55,359 Speaker 1: who's the Commerce and Consumer Affairs Minister. 64 00:02:55,840 --> 00:02:58,720 Speaker 2: For more from the Mike Asking Breakfast, listen live to 65 00:02:58,840 --> 00:03:01,919 Speaker 2: news talks. They'd be from six am weekdays, or follow 66 00:03:01,960 --> 00:03:03,519 Speaker 2: the podcast on iHeartRadio.