Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

I will get to New Zealand and I will come back to that, but there are some special circumstances for Pacific countries. I know firsthand, because I have discussed this issue with economic ministers of the Pacific nations. As to other countries, say in South-East Asia and Asia, we will have to take that on notice and we will come back to you with the specific arrangements. We are aware in general that there are some guarantees of types in some of the Asian countries, but we will have to come back because we do not have those details here.

Let me return to the circumstances of New Zealand and the Pacific nations. If you look at the New Zealand banking system, Senator Brown—and I will be tactful—you see Australian banks predominate. They have Kiwibank, which is a New Zealand state-owned bank that the previous Labour government established, but, other than Kiwibank, the banking system is predominantly Australian owned and operated. So there is a strength for New Zealand in an indirect sense, given that the banking system is dominated by Australian banks.

I could make a similar comment about the Pacific countries. I attended the Forum Economic Ministers Meeting in Vanuatu three or four weeks ago, and this issue was raised. ANZ and NAB dominate the banking systems of those particular countries. They were broadly pleased by the actions of the government because they gave an indirect guarantee to their banking systems in the Pacific, which are dominated by Australian banks. In the Pacific generally, there is a bank out of PNG and I think there are a couple of French banks in New Caledonia. I am not sure of their particular status, I have to say, but in general the Pacific countries are appreciative of the actions of the government because of the indirect guarantee, which helps their financial system. They do not have significant non-banking sectors in those countries. There are some insurance type products—properties and trusts—but they are not significant in the context of their economies. That is as much information as I can give you at the present time.