Commerce Commission files proceedings against Westpac
The Commerce Commission has announced that it has filed proceedings against Westpac New Zealand.
ACT MP and primary production select committee chair Mark Cameron says he welcomes the investigation.
"Many in the constituency have raised alarm at this practice and full and open transparency about the Net Zero Banking Alliance and its practices is now timely," Cameron told Rural News.
The Net Zero Banking Alliance is an international group committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas emissions by 2050.
Federated Farmers claim the five major banks - ANZ, Westpac, BNZ, Rabobank and ASB - have aligned their lending policies and are engaged in "cartel-like behaviour" in terms of their net zero emissions targets. The farmer lobby also claims that the five banks' policies are linked to their affiliation with the Net Zero Banking Alliance. It wrote to the Commerce Commission calling for an investigation. The banks have denied the claim.
A Commerce Commission spokesperson told Rural News that following concerns raised with the Commission, they've opened an investigation to determine whether the adoption and alleged alignment of net-zero strategies and targets by banks, including commitments made under the Net Zero Banking Alliance, could breach section 30 of the Commerce Act.
"We are continuing to obtain information from relevant parties to determine whethere there is conduct that breaches the Act.
"As this is an active investigation, we're unable to make any further comment, including how long the investigation might take."
Federated Farmers banking spokesman Richard McIntyre points out that following Feds' complaint in December, the Commerce Commission made some initial inquiries.
"As a result of that they have decided to open an investigation under section 30 of the Commerce Act which relates to cartel behaviour," he told Rural News.
"It seems that during their initial enquiry they smelt enough smoke to support a more formal investigation looking for fire - and I think they might just find something.
"This is an incredibly serious issue for the banks at this point. If they are found guilty, their directors could face criminal charges. The banks could also be on the hook for huge fines.
"We're calling on New Zealand banks to do the right thing and withdraw from the Net Zero Banking Alliance," McIntyre says.
