WINSTON PETERS: Ordinary Kiwi savers left high and dry by government

No doubt New Zealanders think their bank savings are safe.

Don’t count on it. If your bank goes bust expect to wave goodbye to your hard-earned dollars.

You won’t hear John Key saying this but New Zealand is the only advanced country in the world without any form of depositor protection.

This has been confirmed with Kiwibank announcing that their existing government guarantee on savers’ money will end on February 28, 2017.

The government is abandoning ordinary New Zealanders to the volatility and uncertainty of the global economy.

It’s not a big surprise. John Key and his government have sold out to the globalists and have lost touch with the ordinary Kiwi. Which means they are out of step.

All other OECD countries provide a government backed deposit guarantee scheme up to a modest level of savings.

That is how it should be. These countries realise that if there is a financial bump or crash, things could slump further if confidence plummets and a rush is made to withdraw money.

Instead of a government guarantee, the Reserve Bank has introduced an untried, unproven policy - an ‘Open Bank Resolution.’

This resolution boasts that it could act in the event of a banking emergency. But who bears the losses if a bank goes belly up under this policy?

The ordinary depositors.

Waiting for a crisis to unfold without introducing first a proper deposit guarantee scheme is playing with fire.

New Zealand must avoid a repeat of the South Canterbury Finance fiasco when the government provided a bail-out in Treasury’s botched and ill-prepared deposit protection scheme, and failed to cap the taxpayers’ guarantee. As a result the taxpayers were milked for $1.6 billion.

New Zealand First isn’t turning our backs on ordinary Kiwis. We would provide a government guarantee on deposits of up to $100,000 with New Zealand owned banks including Kiwibank.

The government should be leading the way in protecting the savings of ordinary Kiwis.

But they’ve tossed them into shark infected financial waters.