A Big Win For ANZ/ING Investors
ACT New Zealand Economic Development Spokesman John Boscawen today welcomed the announcement by the Australia and New Zealand Banking Group (ANZ) that it had reached a record $45 million settlement with the Commerce Commission over losses suffered by investors in ING’s Regular Income Fund (RIF) and Diversified Yield Fund (DYF).
"This settlement follows a two year investigation by the Commission into ING’s alleged breaches of the Fair Trading Act. On average it represents a further seven cents in the dollar on top of earlier payouts of either 60c or 62c per dollar for each of the funds’ investors," Mr Boscawen said.
"While many investors will feel that a more substantial settlement should have been given, I feel happy for those ING investors who will receive additional compensation.
"The consistency of investors’ stories was impressive and I repeatedly heard from those that suffered losses that they had acted on the advice of ANZ, who said that investment in ING’s funds was as safe as a bank. Since being elected to Parliament I have fought for the rights of those investors who suffered losses from this bad advice.
"I congratulate the Commission on its investigation and the result it achieved. I particularly pay tribute to those members from the Frozen Funds Group who campaigned up and down the country for proper compensation from ANZ/ING.
"I doubt if such a substantial settlement would have been achieved, let alone such a thorough investigation completed, if it has not been for the publicity the Frozen Funds Group managed to generate," Mr Boscawen said.
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NZ/ING Review Delayed
Investors awaiting the outcome of the Commerce Commission’s investigation into the failed ANZ/ING funds will be now forced to wait even longer following Chairman Mark Berry’s admission today that the review has been delayed until mid April, ACT New Zealand Commerce Spokesman John Boscawen said today.
“Thousands of people have lost money in this collapse and all were expecting an answer next week. If it weren’t for my question to Mr Berry today, investors would not have been aware of the delay. This is not acceptable,” Mr Boscawen said.
“Investors’ funds were frozen in March 2008 and the case has dragged on ever since. Investors have been left in limbo – with some passing away without ever seeing the outcome.
“I urge the Commerce Commission to give this issue priority to ensure there are no further delays. Investors have waited long enough,” Mr Boscawen said.
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Inquiry Step In Right Direction
ACT New Zealand Finance Company Spokesman John Boscawen today welcomed the Commerce Select Committee’s decision to conduct an inquiry into the failing finance company sector that has ruined so many Kiwis’ lives.
"Since February I have been calling for an inquiry into the reasons why so many finance companies have collapsed - leaving a trail of devastation in their wake – and I feel it’s a personal victory that the Committee has finally agreed with me and I am grateful for their support," Mr Boscawen said.
"The Committee will look at what changes need to be made to the law – if any – to prevent such losses happening in the future.
"Billions of dollars have been lost – with some investors having been driven to suicide. Many other investors have lost their homes, their life-savings and will now struggle to survive in their retirement years.
"With thousands of people – many of whom are elderly and vulnerable – being affected, I urge anyone with strong views on this situation to make a submission. The terms of reference can be found at www.parliament.nz.
"I am strongly urging investors to have their say so that this situation can be resolved and future investors are protected from the tragedy and heartache that we have witnessed to date," Mr Boscawen said.
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ANZ’s Reputation At Stake
ACT New Zealand Finance Company Spokesman John Boscawen today urged ANZ to give investors more time to lodge complaints around ANZ/ING's Diversified Yield Fund and Regular Income Fund following Banking Ombudsman Liz Brown’s appearance before the Commerce Select Committee.
"According to Ms Brown, many ANZ/ING investors have delayed lodging a complaint because they are ashamed of the situation they have found themselves in," Mr Boscawen said.
"In fact, some of these investors are only now informing their families that they have lost this money – so great is their embarrassment and humiliation in losing, what is for some, their life savings.
"But should ANZ extend its complaints deadline from July 31 to September 30 these investors may have some chance of recovering more of their money, with Ms Brown stating that if investors' complaints are upheld, they will receive $1 for every dollar invested plus interest – potentially doubling the 60-62 cents in every dollar invested that ANZ/ING has agreed to refund.
"Given that ANZ has already been found to have misled more than two thirds of complainants adjudicated to date, it is highly likely that other complaints will be upheld.
"If ANZ is to have a hope of recapturing the trust of its customers and the wider public, it must show itself to be responsible and accountable. ANZ should extend the complaints deadline – its reputation depends on it," Mr Boscawen said.
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ACT Welcomes Labour Support on ING/ANZ
It is heartening to see that Commerce Select Committee Chair Lianne Dalziel has joined me in my campaign to ensure that New Zealanders who have lost money through the ING/ANZ Diversified Yield or Regular Income Funds are able to recover their losses should the Commerce Commission find that ING/ANZ misled investors, ACT New Zealand Finance Company Spokesman John Boscawen today.
"Just days ago, Ms Dalziel announced that she will submit a Private Member's Bill to protect the rights of the 14,000 investors that have lost money through these funds should ING/ANZ be found culpable," Mr Boscawen said.
"Of those investors, 2,800 invested through ANZ and to date approximately 450 have lodged a complaint with the Banking Ombudsman. The Ombudsman has upheld two thirds of the complaints received.
"ANZ investors who have accepted today's offer will now have only until July 31 to lodge a complaint with the Banking Ombudsman. Investors who miss that deadline will be deemed as having waived their right to recourse. In addition complainants who settle with ING/ANZ today will lose their right to further reimbursement should the Commerce Commission rule against ING/ANZ.
"This is completely unfair, and I have been working to protect the rights and interests of those who invested with ING/ANZ in good faith. I have been trying for some months to get the Commerce Committee to hear from investors who have lost money over the past two years from failed investments, with no success.
"With Ms Dalziel's support, however, this should change. I have today written to her, and other Select Committee members, urging that this be added to the agenda for our meeting scheduled July 23.
"Notwithstanding that Ms Dalziel may not have completed drafting her proposed Bill or that it is yet to be drawn from the Ballot - there is no reason why the Commerce Committee cannot hear evidence on the proposed Bill and the issues that relate to it or from investors at our next meeting on July 23.
"The Commerce Select Committee cannot ignore this issue any longer," Mr Boscawen said.
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Airport Decision Bad For New Zealand
ACT Leader Rodney Hide today said that every New Zealander would end up paying for the Labour-led Government’s botched handling of the sale of Auckland International Airport as investors - both here and abroad - will now look twice before investing in our country.
"Investors want certainty of the rules, but Labour keeps chopping and changing them - even showing its willingness to change the rules halfway through the process," Mr Hide said.
"So far the cost has been to existing investors, as wealth has been diminished, and to the would-be investors who have spent millions going through due diligence on the deal. But the long-term cost will be borne by every New Zealander as all investors will now think twice about investing their money in New Zealand.
"It’s no wonder that the Labour-led Government has more than halved our productivity growth, dropped our performance down to the level of the dark old Muldoon days, and that we continue to slip further behind Australia and countries further afield," Mr Hide said.
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Telecom Regulation "Big Step Backwards" For Free Enterprise
Today's announcement from the Government that Telecom's local loop will be unbundled has been slammed by ACT Leader Rodney Hide as a big step backwards for free markets and private enterprise.
"This decision is not about allowing competition, it's about government forcing a private company to open their network to competitors", Mr Hide said.
"Labour has absolutely no respect for private property rights.
"Instead of creating an alternative network, a group of companies have pressured Ministers to let them leech off Telecom's lines.
"As well as Telecom, the losers from this evening's announcement will be those companies which have built their own networks, including TelstraClear, Citylink, Woosh, Wired Country, Enternet and Airnet.
"This sends a chilling message to any company wishing to invest in infrastructure - Government will regulate and control you, unless you do what politicians say.
"Labour has shown its true colours - and a socialist desire to interfere elbow-deep in private enterprise.
"Telecom is one of New Zealand's most successful companies. Politicians should stick to their role of governance, and let businesspeople run their businesses.
"Who knows which company Labour will whack next.
"Government's forced unbundling of the local loop is a big step backwards for private enterprise and free markets", Mr Hide said.
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ACT Leader Calls for Rugby World Cup Inquiry
ACT leader Rodney Hide said today he was concerned that not enough was being done by government to ensure Auckland has the infrastructure needed to host a successful Rugby World Cup in 2011.
"The fact is that Auckland's infrastructure has been run-down by successive governments and is insufficient to meet Auckland's needs on an ordinary business day - let alone to handle the demands of the Rugby World Cup.
"I have therefore written to the Commerce Committee asking them to inquire into the adequacy of the government's planning and funding of Auckland's infrastructure needs.
"I have suggested to the Committee that they invite the Minister for Auckland Issues, Hon Judith Tizard, and Minister of Sport Trevor Mallard, as well as Auckland's regional and city councils, the Mayor of Auckland, Transit New Zealand, and business groups to make submissions for their inquiry.
"It's crucial that Parliament and the public be assured that the government is making adequate plans now to ensure a success in 2011. The Commerce Committee is well-placed to undertake just such an inquiry," said Rodney Hide.
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National Party sells out small business
ACT Leader Rodney Hide said today that he was disappointed that National is set to swing in behind Labour’s cynical vote–buying policy of four weeks’ annual leave.
“ACT is the only party standing up for small business which has been whacked by Labour for five long years and now National is putting the boot in,” Mr Hide said.
“There has been a litany of anti-business measures foisted on small business. Labour has driven through employment laws that work against employers; imposed over 30 new taxes; health and safety regulations have been ratcheted up; no tax relief has been offered; and there’s now talk of compulsory unionism.
“We have a very greedy government, mostly made up of MPs who have never run a business and don’t understand that New Zealand is driven by small business. Instead, small business is being taken for a ride.
“National is increasingly looking like Labour in drag. It has signed up to the costly Cullen Super Fund, it agrees with Jim Anderton on the corporate tax rate, and Helen Clark’s 39-cent envy tax on success.
“Now in a desperate attempt to win some middle ground, National has reversed its opposition to Labour’s ill-conceived four weeks’ annual leave policy. ACT believes holiday arrangements are best organised by employers and employees.
“ACT’s values are the values of small business. We remain committed to ensuring the little guy gets a fair go, improving profit margins, cutting red tape and taxes.
“National is only interested in votes. ACT is only interested in who really counts – small business and hardworking New Zealanders,” Mr Hide said.
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Rodney Hide MP
rodney.hide@parliament.govt.nz
Phone: 04 470 6630 / 021 772 385
Fax: 04 473 3532
Cameron Brewer, Senior Communications Advisor
cameron.brewer@parliament.govt.nz
Phone: 04 470 6648 / 021 828 016
Business Roundtable Wake-Up Call Welcomed
ACT Finance Spokesman Rodney Hide said today that the New Zealand Business Roundtable’s wake-up call to Prime Minister Helen Clark’s government was welcome.
“Helen Clark spent her first three years trying to “Close the Gaps”. She failed so miserably she even banned her Ministers from ever referring to the goal.
“She has now declared her prime goal to be to boost economic growth. But virtually every action her government has taken has been anti-growth and has made it tougher for New Zealanders to work and produce.
“Business Roundtable Chairman Rob McLeod is to be congratulated for challenging Prime Minister Helen Clark to produce an economic strategy based on the economic lodestar of freedom that will achieve the ambitious growth targets that her government has mouthed but not actioned,” concluded Rodney Hide.
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