Alliance leader Jim Anderton, the man behind tens of millions of taxpayer dollars being sunk into Kiwibank, is distancing himself from the bank's latest hitch.
Kiwibank will be run by New Zealand Post from 300 outlets nationwide, 170 of them franchisees. But the franchisee advisory panel of Books and More -- itself part-owned by NZ Post -- has recommended its 36 stores not provide Kiwibank services in their stores.
"Our collective response is that we consider 53 cents per transaction far too low, that the financial model is not robust enough and there are too many unknowns, which can only have a negative financial outcome," a memo from the panel to members, parts of which were released by ACT MP Rodney Hide, said.
"From what we have seen to date, we believe that the only option that is level-headed is to decline banking in our own stores and take a wait and see approach..."
About $80 million of taxpayer funds is being put towards the establishment of the bank, which was a pre-election promise of the Alliance party.
But Mr Anderton this morning told NZPA the Books and More negotiations were an operational matter and had nothing to do with him.
"These are operational matters. NZ Post has a right to negotiate with franchise holders ... it's a free country.
"People can enter into contracts or not enter into them as they wish. There will be some who will, there will be some who won't."
However, he remained confident the bank would go ahead and be "very successful".
Mr Hide did not share his optimism, saying the bank was such serious trouble.
"Officials told Jim Anderton that the bank was a dog but he pushed on regardless," he said in a statement.
"It now looks like the bank isn't even going to get off the ground.
"(Prime Minister) Helen Clark should put a stop to Jim Anderton's madness before even more damage is done to successful New Zealand business and to the taxpayer's pocket."
- NZPA
Anderton distances himself from Kiwibank hitch
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