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NewsFlash: Inland Revenue Minister David Parker Caves in to the Bankers

In the few hours since our last blog, which described how our nation's economic policy has descended into "comedy" as Labour tried to put GST onto the already-highly-inflated Kiwi Saver fees charged by big financial institutions, with National opposing the move, the comedy has turned into farce as Labour has just decided to abandon such proposals.


Neither of our two main political parties was prepared to address the root of the problem which was described in our last blog - namely the size of the rip-off fees that are being charged by the managed funds whose long-run performance, after deducting fees, is worse than the market-average.


The only truth to emerge from this reversal is that, even after all of the trouble caused by the banks during the Global Financial Crisis of 2008, and even with a Labour Party in power in NZ, the PM and her Ministers of Finance & Revenue are prepared to reverse policy within around 24 hours of announcing it because the bankers weren't happy.


Sources:

https://www.1news.co.nz/2022/08/31/govt-makes-u-turn-on-kiwisaver-fee-gst-proposal/