Michael Cullen tagged posts

Bank Guarantee Scheme Coming Sooner

October 24, 2008 New Zealand Finance  No comments

The government’s proposed bank deposit guarantee scheme is planned to be instituted before the November 8th election.

While previous government statements placed the timeline for the scheme as being before Christmas Day. This announcement seems to be a warning or an indication of intent so far, as there were a number of details omitted by Michael Cullen concerning the Bank Deposit Scheme. Predominantly the missing details are those surrounding the involvement and requirements from the Australian government and banks in regards. However, previous statements made by Michael Cullen indicate that there might be a requirement for participating Australian banks to float set amounts of their shares on the New Zealand Stock Exchange.

This quickening of pace is not thoroughly welcome by some key ...

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Wholesale Deposit Guarantee Likely

October 20, 2008 International FinanceNew Zealand Finance  No comments

According to statements from Finance Minister Michael Cullen made during a television interview on the 19th of October, the newly proposed bank guarantee scheme could soon be extended to wholesale deposits.

As it stands at this moment in time, the proposed retail-banking guarantee scheme does not extend to funds attained from international wholesale markets. According to Michael Cullen the government has been looking at the possibility of making this a reality, although since the New Zealand banking system was not undergoing any sort of crisis at the moment, they have to time to properly create and implement appropriate measures.

Concerns arise with the proposed scheme whereby it would seem that it would give virtual monetary guarantees to offshore stakeholders, effectively transferring ...

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Government to Instate Deposit Insurance

October 13, 2008 New Zealand Finance  No comments

In a bid to increase financial confidence, the New Zealand Government has instituted a bank deposit guarantee scheme.

The scheme was announced by Finance Minister Michael Cullen and was brought in under the Public Finance Act. While he went on to say that the government has total confidence in the New Zealand banking sector, the initiative was to ensure confidence from both banks and New Zealand investors. The move follows similar schemes adopted recently by Ireland and Australia.

The Deposit Insurance is currently is pegged at $150 million dollars, and is an optional opt-in scheme, and is planned initially for a two year time period. Currently registered banks and deposits by institutions like building societies and credit unions are eligible for the scheme.

At the time of publication AS...

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New Petrol Tax Likely

October 2, 2008 New Zealand Taxation  No comments

New petrol taxes are likely to be approved within the next two weeks according to Finance Minister Michael Cullen.

The new petrol taxes are specifically budget to pay for the electrification of Auckland’s rail network. Any surplus that might present itself will be budgeted for further road construction projects. The proposed taxing scale will see an extra 1c added to each liter of petrol on the 30th of June, 2009. A subsequent rise to 3c is scheduled to occur in the winter of 2009 and lastly a raise to 5c in 2011.

While the new petrol tax is not set in concrete yet, Finance Minister Michael Cullen appears confident in it reaching government approval within the fortnight. He went so far as to say that “The Government sees in effect the current electrification as a lock-down certainty...

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