The recent announcement that Westpac is “reviewing” ownership of its New Zealand business caused some speculation the decision might be due to the bank’s lower profitability. But this would be unlikely grounds for a sale, and was more a consequence of COVID-19’s impact than anything.
In fact, Westpac’s New Zealand profits should be considerably higher this year close to NZ$1 billion, as opposed to the $550 million in the previous year (to September 30 2020). Based on past experience, a sale price of $10 billion (AU$9 billion) would not be unreasonable, possibly even higher.
More likely, the proposed sale is due to the complex and conflicting regulatory requirements of the Australian and New Zealand banking supervisors. We saw this in the decision of the New Zealand supervisor, the Reserve Bank of New Zealand (RBNZ), to require banks to be positioned for “open bank resolution” (OBR).
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Moroccan Sahara and New Zealand High Court ruling
Recent High Court of Justice decision is another victory for the southern Moroccan provinces, writes Dr Aymeric Chauprade.
02 Apr 2021
On 15 March, the New Zealand High Court of Justice issued its decision following legal action initiated last year by two members of the Polisario separatist movement.
Polisario s target was the New Zealand Superannuation Fund (NZSF), a sovereign wealth fund which is a kind of pension fund and which has invested in recent years in fertiliser production activities using phosphate from the Moroccan Sahara.
More than 40 years ago, New Zealand - a great agricultural power - developed a commercial relationship with Morocco, known worldwide for its production of phosphate-based fertilisers.
SPS 16/03/2021 - 09:50
Wellington (New Zealand) 16 Mars 2021 (SPS)- New Zealand High Court affirmed in a ruling issued yesterday that Morocco has no sovereignty or administrating power over the occupied territory of Western Sahara.
In a judgment it issued on a case by Kamel Mohamed & Barton v Guardians of New Zealand Superannuation Fund concerning the application for judicial review of the Fund’s investments in Western Sahara, the Court considered that the importation of Western Saharan phosphate poses reputational risk to New Zealand’s wider interest.
Commenting on this position, Polisario Front’s Representative to Australia and New Zealand, Mr. Kamal Fadel, said “Given that the High Court has recognised that the ongoing importation of Western Saharan phosphate to New Zealand poses a reputational risk to New Zealand’s wider interests, we urge the New Zealand fertiliser companies and all those involved in the plunder of Western Saharan phosphate to cease the tr
The fund has previously defended its right to comment on public policy issues.
Finance Minister Grant Robertson has given the New Zealand Superannuation Fund a clear message to stop talking to the news media about policy issues.
But his office said there is nothing new in the direction and that Robertson has previously told the fund to refrain from public debate on government policies.
In his latest letter of expectations to the fund’s outgoing chair Catherine Savage – dated December 22 last year – he wrote that he welcomed discussions with her on policy settings to deliver on the fund’s mandate.