Prime Minister Christopher Luxon announces shake-up of banking sector to improve competition at post-Cabinet press conference

Prime Minister Christopher Luxon has announced new moves to improve competition in the banking sector, following a Commerce Commission investigation.

He and Finance Minister Nicola Willis spoke at the weekly post-Cabinet press conference at the Beehive about the Commerce Commission’s report on banking competition, which found the sector wasn’t competitive enough.

Luxon said the commission found banks focused on retaining market share, which didn’t drive better prices for consumers. “Frankly, that is not good enough.”

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Luxon said all 14 report recommendations would be progressed.

”In short, we want to disrupt the status quo.”

Willis said the big banks had become “complacent”.

“It’s this simple; the banks need to get on and deliver better and more affordable services for New Zealanders.”

Failure to act could result in government regulation, she warned.

Prime Minister Christoper Luxon (left) and Finance Minister Nicola Willis didn't mince their words about the banking sector, Willis calling it "complacent". Photo / Mark Mitchell

It comes at the start of the final sitting bloc of the year for Parliament, with the Government still needing to tick off key items from its quarter-four action plan.

Among them is passing the Fast-track Approvals Bill, which will allow projects of regional or national significance to be eligible for streamlined approval. That still needs to go through its third reading in the House. The legislation reversing the ban on new offshore oil and gas exploration also needs to go through the final stage.

Luxon and Willis also fielded questions about their plans to replace the Interislander Cook Strait ferries. Deputy Prime Minister Winston Peters has said the deadline for that decision is Wednesday, meaning an announcement could be imminent.

Willis revealed last December that the new coalition Government would halt plans to purchase two new mega ferries to replace the current fleet. That came amid concerns by the new ministers about a significant blowout in the project’s cost.

Transport Minister Simeon Brown has told the Herald: “The Deputy Prime Minister has made clear there’s a timeframe we’re working towards.”

Asked whether that meant the ferry decision would go to Cabinet today, Brown said: “It’s a timeframe we’re working towards and obviously it’s being led by the shareholding ministers.”

Prime Minister Christopher Luxon and Finance Minister Nicola Willis will face questions on Monday afternoon. Photo / Mark Mitchell.

Brown confirmed the public could expect an announcement by Wednesday.

“We’re working through that at pace.”

The Prime Minister was also asked about the evolving situation in Syria, where rebel forces have overthrown the regime led by Bashar al-Assad. It was reported this morning that the former Syrian President had fled to Russia. Iran and Russia, two of al-Assad’s supporters, did not provide military support during the rebel offensive.

The al-Assad family has ruled Syria for more than 50 years, creating further uncertainty for a region already dealing with the war between Hamas and Israel. Israel on Monday moved beyond a de-militarised zone on its border with Syria for the first time since 1973, the New York Times reported.

Foreign Affairs Minister Winston Peters on Monday posted on X (formerly Twitter) that New Zealand was watching developments closely following the fall of al-Assad’s regime.

“This was a regime that perpetrated significant human rights abuses, including repeated chemical weapons attacks, against its own people for many years,” Peters said.

“Now we need to see a peaceful transition with civilians protected and UN Security Council resolutions upheld. This is critical for moving towards a sustainable and comprehensive political solution.”