By VERNON SMALL deputy political editor
The Government is backing away from assurances it will not pump any money into New Zealand Post's planned Kiwi Bank.
Deputy Prime Minister Jim Anderton is understood to be pressing for an investment in the bank despite Finance Minister Michael Cullen's earlier reluctance.
Asked if it was still true the bank would not get any equity injection or on-going financial support, Mr Anderton said: "It's all in what you mean by various words. There are lots of ways you can configure things in terms of financial structures, and when you say 'on-going,' does that mean you would have to subsidise this permanently? There's no way."
Asked if there would be any temporary input, Mr Anderton said there would not be a subsidy.
"The question is: 'Is there any money to be invested in an asset that actually returns you a very high return. Is that a possibility?' Now that's something that the business case has to face," he said.
NZ Post presented its final plan for the bank to Mr Anderton, State Owned Enterprises Minister Mark Burton and Dr Cullen on Tuesday.
Mr Anderton would not discuss whether NZ Post argued for extra money to set up the bank.
The issue is clearly sensitive within the Government. Last week, the Treasury released to the Herald its July report to the Organisation for Economic Co-operation and Development, but deleted a single sentence from the 123-page document.
After the Herald argued that it was unreasonable to withhold data already handed to OECD officials, the Treasury relented and released the full text.
The sentence read: "Shareholding ministers have already indicated that they will not support a proposal [for a Kiwi Bank] that requires a crown equity injection or on-going financial support from the Crown."
The Treasury said the sentence was deleted because it was an issue soon to be considered by ministers. "We took the view that until cabinet has decided the issue, ministers are entitled to undisturbed consideration," a spokeswoman said.
Mr Anderton is preparing a final proposal for the cabinet to consider next month.
Anderton wants money for bank
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