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Govt Won't Meet Finsec's Job Protection Demands, English Says

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, May 5 NZPA - The Government isn't going to protect bank jobs by putting conditions in its deposit guarantee scheme, Finance Minister Bill English said today.

Bank workers' union Finsec intended presenting a petition to Parliament today asking the Government to step in and protect jobs.

Workers wanted the guarantee scheme changed to cover job security.

Since late last year the Government has been guaranteeing bank deposits and the foreign loans they draw on, to help the sector get through the recession.

Mr English said the Government was as keen as Finsec to protect jobs.

"But I think making it a condition of the guarantee is a bit heavy handed," he told reporters.

"Removing a guarantee from one of our major banks could have quite significant economic effects on thousands of jobs and I don't think Finsec would want that. Removal of the guarantee is probably too strong a measure to take."

Mr English said the Finsec petition would be considered.

"We'll see if we can take it anywhere but I think it would be fair to tell them now that there's no prospect the Government would remove the bank guarantee because of a loss of bank jobs."

NZPA PAR pw kn

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