NZ debates levy on Aussie-owned banks

At the weekend's party conference of one of the junior partners in the New Zealand coalition government, NZ First, members voted in support of three policy remits aimed largely at the Australian-owned banks.

The remits called for a $50 million banking levy to be used to help keep bank branches open in the regions and to fund "public good outcomes".

They called for the government and local government to be mandated to use only Kiwi-owned banks.

Members also proposed the party adopt a policy to buy back the 45 percent of KiwiBank divested under the former National government during the state asset selloffs, so the Government had more control over the bank's future.

Regional economic development minister Shane Jones said there was a spirit in the party that felt the government needed to be more disruptive of the ability of the Australian-owned banks to continue to export inordinate amounts of capital.

The proposals have to be ratified by the NZ First caucus policy committee before being adopted as party policy.