The Commerce Commission's final report into New Zealand's banking sector is out.  

It says competition isn't working as it should be in the banking sector, and consumers are missing out as a result.

The Commission says in a well-functioning market with strong competition, they'd expect to see more aggressive strategies to win customers from other banks.

Part of its answer is giving Kiwibank greater access to capital, to make it a stronger competitor to the Australian-owned banks.

Also part of the equation is rolling out open banking faster and making changes so it's easier for smaller banks to compete and for consumers to compare and switch banks.

NZ Herald Wellington Business Editor Jenée Tibshraeny told Francesca Rudkin that the issue is that for Kiwibank to grow, it needs more capital, but the Government’s finances are tight at the moment.

She said that in order for Kiwibank to grow, the Government would need to dilute its ownership and allow in capital from the private sector.

LISTEN ABOVE

The Commerce Commission's final report into New Zealand's banking sector is out.   
It says competition isn't working as it should be in the banking sector, and consumers are missing out as a result. 
The Commission says in a well-functioning market with strong competition, they'd expect to see more aggressive strategies to win customers from other banks. 
Part of its answer is giving Kiwibank greater access to capital, to make it a stronger competitor to the Australian-owned banks. 
Also part of the equation is rolling out open banking faster and making changes so it's easier for smaller banks to compete and for consumers to compare and switch banks. 
NZ Herald Wellington Business Editor Jenée Tibshraeny told Francesca Rudkin that the issue is that for Kiwibank to grow, it needs more capital, but the Government’s finances are tight at the moment. 
She said that in order for Kiwibank to grow, the Government would need to dilute its ownership and allow in capital from the private sector. 
LISTEN ABOVE

Join Kerre Woodham one of New Zealand’s best loved personalities as she dishes up a bold, sharp and energetic show Monday to Friday 9am-12md on Newstalk ZB. News, opinion, analysis, lifestyle and entertainment – we’ve got your morning listening covered.

Kerre Woodham Mornings Podcast

Jenée Tibshraeny: NZ Herald Wellington Business Editor on the Commerce Commission's report into the banking sector

I could not have put it better than ACC Minister Matt Doocey did yesterday. He wants ACC to lift its own game before it starts raising levies. 

The Accident Compensation Corporation has just begun a one-month consultation on suggested rises of more than 7% on levies for motorists, and more than 4% for employers and earners. I mean everybody else is raising their rates, aren't they? So here goes ACC. They have motorcyclists, professional sports people and ballerinas, specifically in their sights. Ballerinas?! Dainty, little, tiny, wee things like them, I imagine it's a strenuous job, and if something goes wrong, if you're a ballerina, it would go wrong badly, but I wouldn't have thought there would be that many to make a drain on the Accident Compensation Corporation’s finances. But none the less, be warned ballerinas – you are in the ACC’s sights. 

To be fair, ACC has said it is just a consultation at this stage, and the proposal is part of a legislative requirement every three years, with cabinet making the final decision on whether levies are raised before December. Can you imagine any minister going ‘hmm, probably a bit unfair, let's see ACC improve its game before we lift the levies’. I cannot see any government organisation or minister going, ‘you know what? let's keep things the way they are’.Doocey says ACC has to make its own efforts to lift its poor financial performance, it has to increase its rehab rates, and it has to do a lot more around injury prevention before they can make a case for raising levies. And that is a fair call given ACC has just done a U-turn and reintroduced one-on-one case managers. They took them away as part of a $74 million restructure, despite the fact the agency had been warned that the new restructure was a dud. A complete dud that wouldn't work. 

And in fact, we had a caller a couple of weeks ago who said that they had been trying to talk to ACC about their particular rehabilitation, they said they were passed from pillar to post, from one person to the next. They had to explain everything from beginning to end every single time they phoned, and it was just a waste of everybody's time and incredibly frustrating. So one-on-one case managers have been reinstated. 

It's just another colossal waste of time and money. The rollout began in 2020 with some zingy person leading the restructure going ‘hey, we're going to increase productivity. Yes, we are. We're going to save costs and you case managers, you're going to see a direct lift in your performance. We're going to improve your workloads’.  By 2022, running costs had doubled, there were no discernible benefits to clients, and there was little improvement to case backlogs with exhausted and overworked case managers dropping at their desks. So the agency's gone back after $74 million down the gurgler to one-on-one case management. 

Back to the proposed living increases, they are up for discussion, so let's discuss. Motorcyclists - the levy covers only around 28% of your costs to the ACC scheme. When things go wrong if you're a motorcyclist, things go wrong badly, so you're going to need a lot of rehab. So Matt Doocey asked do we lower the levy for lower powered bikes while increasing the cost for more powerful bikes? And I would really love to know what ballerinas are doing to stuff themselves up so much. 

Professional sportspeople - I thought you would have been well and truly covered with the medical system that surrounds you as part of your job and the fact that you would go private.  I mean when have you ever heard of any All Black going on the waiting list for a knee operation? They don't. They're in surgery the next day, so I would have that would have been part of your contract that your medical costs are covered. Interesting though, at the Kerre Woodham Morning Show, two out of two of us have been on ACC in the past year. Helen with her never ending shoulder fracture and then me with the smashed arm. But again, the ACC ended after I think it was about 6 physio visits. I've been paying for them ever since. I paid for my own acupuncture, I didn't need any taxis. But we have used it. 

It is a good system when it works. You know you take responsibility for your own recovery as well. You don't just lie there, lumpingly, and expect the taxpayer and the government to fix you. You do your own rehab and try and get yourself better. Everybody says, oh, it's the envy of the world, your ACC, it's just wonderful. Is it still? There's a $1 billion shortfall and you know a lot of that is the damaged babies that actually survive the brutal beatings, but they are left needing lifelong care, so a fund has been set aside for their lifelong needs, which sickens me. 

You cannot get blood out of a stone. I don't know how much more they expect us to pay for everything, for all of the everything. For the rates, for the insurance, for the ACC, for the food, for the doctor's visits, for the everything. You know, there comes a point where you just cannot pay any more. But is ACC serving you well? I can put up my hand and I can do that now and say it has, it has worked well, provided you do your bit too. It's got to be a 50/50 partnership, I think. But can they really justify asking for more in levies when they have just wasted $74 million on a failed restructure? I’m with Matt Doocey: lift your own game before you take money out of our pockets.

I could not have put it better than ACC Minister Matt Doocey did yesterday. He wants ACC to lift its own game before it starts raising levies.  
The Accident Compensation Corporation has just begun a one-month consultation on suggested rises of more than 7% on levies for motorists, and more than 4% for employers and earners. I mean everybody else is raising their rates, aren't they? So here goes ACC. They have motorcyclists, professional sports people and ballerinas, specifically in their sights. Ballerinas?! Dainty, little, tiny, wee things like them, I imagine it's a strenuous job, and if something goes wrong, if you're a ballerina, it would go wrong badly, but I wouldn't have thought there would be that many to make a drain on the Accident Compensation Corporation’s finances. But none the less, be warned ballerinas – you are in the ACC’s sights.  
To be fair, ACC has said it is just a consultation at this stage, and the proposal is part of a legislative requirement every three years, with cabinet making the final decision on whether levies are raised before December. Can you imagine any minister going ‘hmm, probably a bit unfair, let's see ACC improve its game before we lift the levies’. I cannot see any government organisation or minister going, ‘you know what? let's keep things the way they are’. Doocey says ACC has to make its own efforts to lift its poor financial performance, it has to increase its rehab rates, and it has to do a lot more around injury prevention before they can make a case for raising levies. And that is a fair call given ACC has just done a U-turn and reintroduced one-on-one case managers. They took them away as part of a $74 million restructure, despite the fact the agency had been warned that the new restructure was a dud. A complete dud that wouldn't work.  
And in fact, we had a caller a couple of weeks ago who said that they had been trying to talk to ACC about their particular rehabilitation, they said they were passed from pillar to post, from one person to the next. They had to explain everything from beginning to end every single time they phoned, and it was just a waste of everybody's time and incredibly frustrating. So one-on-one case managers have been reinstated.  
It's just another colossal waste of time and money. The rollout began in 2020 with some zingy person leading the restructure going ‘hey, we're going to increase productivity. Yes, we are. We're going to save costs and you case managers, you're going to see a direct lift in your performance. We're going to improve your workloads’.  By 2022, running costs had doubled, there were no discernible benefits to clients, and there was little improvement to case backlogs with exhausted and overworked case managers dropping at their desks. So the agency's gone back after $74 million down the gurgler to one-on-one case management.  
Back to the proposed living increases, they are up for discussion, so let's discuss. Motorcyclists - the levy covers only around 28% of your costs to the ACC scheme. When things go wrong if you're a motorcyclist, things go wrong badly, so you're going to need a lot of rehab. So Matt Doocey asked do we lower the levy for lower powered bikes while increasing the cost for more powerful bikes? And I would really love to know what ballerinas are doing to stuff themselves up so much.  
Professional sportspeople - I thought you would have been well and truly covered with the medical system that surrounds you as part of your job and the fact that you would go private.  I mean when have you ever heard of any All Black going on the waiting list for a knee operation? They don't. They're in surgery the next day, so I would have that would have been part of your contract that your medical costs are covered. Interesting though, at the Kerre Woodham Morning Show, two out of two of us have been on ACC in the past year. Helen with her never ending shoulder fracture and then me with the smashed arm. But again, the ACC ended after I think it was about 6 physio visits. I've been paying for them ever since. I paid for my own acupuncture, I didn't need any taxis. But we have used it.  
It is a good system when it works. You know you take responsibility for your own recovery as well. You don't just lie there, lumpingly, and expect the taxpayer and the government to fix you. You do your own rehab and try and get yourself better. Everybody says, oh, it's the envy of the world, your ACC, it's just wonderful. Is it still? There's a $1 billion shortfall and you know a lot of that is the damaged babies that actually survive the brutal beatings, but they are left needing lifelong care, so a fund has been set aside for their lifelong needs, which sickens me.  
You cannot get blood out of a stone. I don't know how much more they expect us to pay for everything, for all of the everything. For the rates, for the insurance, for the ACC, for the food, for the doctor's visits, for the everything. You know, there comes a point where you just cannot pay any more. But is ACC serving you well? I can put up my hand and I can do that now and say it has, it has worked well, provided you do your bit too. It's got to be a 50/50 partnership, I think. But can they really justify asking for more in levies when they have just wasted $74 million on a failed restructure? I’m with Matt Doocey: lift your own game before you take money out of our pockets.

Kerre Woodham: ACC needs to lift its game before lifting levies

The number of New Zealanders with dementia is expected to double in the next 20 years, with social disadvantages playing a big role.

Public Health Communication Centre's briefing reveals the risk of developing dementia is 60% higher for people living in the most deprived areas in New Zealand.

Director of the Centre for Brain Research, Sir Richard Faull told Kerre Woodham that there are about 14 factors which, when addressed, reduce the risk of developing dementia.

These factors, which include education quality, social isolation, smoking, excessive alcohol consumption, uncorrected vision loss, and air quality, are often associated with poverty and deprivation.

LISTEN ABOVE

The number of New Zealanders with dementia is expected to double in the next 20 years, with social disadvantages playing a big role. 
Public Health Communication Centre's briefing reveals the risk of developing dementia is 60% higher for people living in the most deprived areas in New Zealand. 
Director of the Centre for Brain Research, Sir Richard Faull told Kerre Woodham that there are about 14 factors which, when addressed, reduce the risk of developing dementia. 
These factors, which include education quality, social isolation, smoking, excessive alcohol consumption, uncorrected vision loss, and air quality, are often associated with poverty and deprivation. 
LISTEN ABOVE

Sir Richard Faull: Director of the Centre for Brain Research on the risk of developing dementia being 60% higher for those in deprived areas

It won't be a particularly good morning for the people of the central North Island. There was a sense of inevitability really, though, with the announcement that Winstone International will be closing its two mills near Ohakune. For months now, Winstone have been working on trying to find a way to keep the mills open in the face of declining commodity prices and astronomically high power prices. More than 200 workers are directly affected, but of course many, many more will feel the ripple effects of the mills closure. And this comes right on the heels of Ruapehu Alpine lifts troubles as well. It's a real double whammy for the region. The Tangiwai Sawmill and the Karioi Pulpmill have been a part of the central North Island community for more than 40 years. Generations have worked at the mills, but no more. 

Resources Minister Shane Jones was with Mike Hosking this morning on the Mike Hosking Breakfast and says the reason for the closure can be laid squarely at the feet of the electricity authority, and we need to make changes to the energy sector. 

“Look, it's up to you and I, as Kiwis and your listeners, do you want an economy where the price of power is internationally competitive to keep businesses functioning? Or do you want to disembowel your economy and turn it into an import model? I don't want that. Which is why Simeon Brown and I are signing off now the criteria and that criteria for the review of the power sector will involve structural separation, but look, mate, people have their had this nervousness, they've had this skittishness - don't touch the power system. We trusted the power system to deliver outcomes that boost international competitiveness and national security, they haven't so we have to change it, simple.”

Well, it's not going to be that simple, is it? Changing it is not going to be that simple at all.  I'd be really interested to hear from other manufacturers or those involved in manufacturing and in business. Is it the fluctuating power prices? Can you point to the electricity authority if your business is really struggling and saying you, you as an entity are the reason that I may well go to the wall? There have been so many stresses put on business, put on manufacturers in particular, over the past four or five years.  

Is the fluctuating price of electricity the straw that's breaking many camel's backs, or is it just four or five years of really tough times? Is it international prices making you uncompetitive when compared with product from the rest of the world and the electricity authority is being used as the whipping boy? I love the way he says simple, he’s going to break up the electricity authority. Well no, it’s not going to be simple. And it's too late for Ohakune, far too late. When Shane Jones says it's the electricity market that's going to stuff our economy, I would have thought there was a bit more to it than that. For people having to pay high interest on business loans, the cost of living crisis, which means spending is reduced internationally competitive prices, other countries being able to outbid you, the high wages that you have to pay here compared to other countries, really the electricity component, I would have thought is just another big pressing, weighty issue coming into your office, not the only one.  

It won't be a particularly good morning for the people of the central North Island. There was a sense of inevitability really, though, with the announcement that Winstone International will be closing its two mills near Ohakune. For months now, Winstone have been working on trying to find a way to keep the mills open in the face of declining commodity prices and astronomically high power prices. More than 200 workers are directly affected, but of course many, many more will feel the ripple effects of the mills closure. And this comes right on the heels of Ruapehu Alpine lifts troubles as well. It's a real double whammy for the region. The Tangiwai Sawmill and the Karioi Pulpmill have been a part of the central North Island community for more than 40 years. Generations have worked at the mills, but no more.  
Resources Minister Shane Jones was with Mike Hosking this morning on the Mike Hosking Breakfast and says the reason for the closure can be laid squarely at the feet of the electricity authority, and we need to make changes to the energy sector.  
“Look, it's up to you and I, as Kiwis and your listeners, do you want an economy where the price of power is internationally competitive to keep businesses functioning? Or do you want to disembowel your economy and turn it into an import model? I don't want that. Which is why Simeon Brown and I are signing off now the criteria and that criteria for the review of the power sector will involve structural separation, but look, mate, people have their had this nervousness, they've had this skittishness - don't touch the power system. We trusted the power system to deliver outcomes that boost international competitiveness and national security, they haven't so we have to change it, simple.” 
Well, it's not going to be that simple, is it? Changing it is not going to be that simple at all.  I'd be really interested to hear from other manufacturers or those involved in manufacturing and in business. Is it the fluctuating power prices? Can you point to the electricity authority if your business is really struggling and saying you, you as an entity are the reason that I may well go to the wall? There have been so many stresses put on business, put on manufacturers in particular, over the past four or five years.   
Is the fluctuating price of electricity the straw that's breaking many camel's backs, or is it just four or five years of really tough times? Is it international prices making you uncompetitive when compared with product from the rest of the world and the electricity authority is being used as the whipping boy? I love the way he says simple, he’s going to break up the electricity authority. Well no, it’s not going to be simple. And it's too late for Ohakune, far too late. When Shane Jones says it's the electricity market that's going to stuff our economy, I would have thought there was a bit more to it than that. For people having to pay high interest on business loans, the cost of living crisis, which means spending is reduced internationally competitive prices, other countries being able to outbid you, the high wages that you have to pay here compared to other countries, really the electricity component, I would have thought is just another big pressing, weighty issue coming into your office, not the only one.

Jenée Tibshraeny: NZ Herald Wellington Business Editor on the Commerce Commission's report into the banking sector

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