Westpac New Zealand has retained the core of the NZ Government banking contract it has had for almost 30 years, but will have to share peripheral elements of the contract with National Australia Bank's BNZ, Commonwealth Bank of Australia's ASB, ANZ and Kiwibank. The deal to handle Government payments totalling over NZ$448 billion annually was tendered for the first time last year after four years of consideration and planning. Westpac had previously held the contract uncontested since 1989. Finance Minister Bill English and Economic Development Minister Steven Joyce announced the awarding of the "All of Government" banking services contracts on Monday. They said it would save NZ$120 million over the life of the contracts, including eight years for the Crown Transactional Banking contract for Westpac.Westpac will share the Foreign Exchange Transactions contract for deals totaling NZ$1 billion a year with ANZ, ASB, BNZ and Citibank. This contract has an initial three-year term with two rights of renewal of three years and two years respectively. Westpac will also share the payments services contract with ANZ, ASB, BNZ and Kiwibank. This also has an initial three-year term with two rights of renewal of three years and two years respectively. It has a maximum term of eight years.The card services component of the contract is shared between Westpac, ASB, BNZ and Citibank. It lasts up to a maximum of eight years with the initial three-year term followed by rights of renewal after three years and two years. "The new contracts will deliver cost savings for government agencies and all New Zealanders. They will ensure that banking services are fit for purpose and provide value for money," English said.There are 35 core government agencies that are required to use the Crown Transactional Banker, while other agencies could choose Westpac or other banks.However, the Inland Revenue Department opted out of the contract for its main Crown Accounts and over-the-counter transactions because it is replacing its computer system in a NZ$1 billion project expected to last up to ten years.Westpac said the deal extended Westpac's relationship with the Government to more than 30 years.