CORRECT: Westpac keeps core government transactions contract   5 Oct 2015

Article - BusinessDesk

CORRECT: Westpac keeps core government transactions contract, other banks get peripheral services

(Fixes govt savings in 4th graph)

By Paul McBeth

Oct. 5 (BusinessDesk) - The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals.

Finance Minister Bill English and Economic Development Minister Steven Joyce today announced Westpac was the winning bidder for the core contract, which accounts for $229 billion worth of credit and $219 billion of debit transactions each year. Westpac will continue to provide core transactional services, foreign exchange transactions, payment services and card services.

Other successful bids will see foreign exchange transactions provided by ANZ Bank New Zealand, ASB Bank, Bank of New Zealand and Citibank, payment services offered by ANZ, ASB, BNZ, and Kiwibank, and card services from ASB, BNZ, and Citibank, the ministers said in a joint statement.

Lower fees were negotiated and the all-of-government deal is expected to save about $120 million over the term of the contracts. Westpac's core contract will run for another eight years, while the foreign exchange transactions, payments services, and card services are all three-year deals with two rights of renewal for a further three and two years respectively.

"The new contracts will deliver cost savings for government agencies and all New Zealanders," English said. "They will ensure that banking services are fit for purpose and provide value for money."

The deal is in line with the Ministry of Business, Innovation and Employment's preferred option in a discussion paper preceding the tender for core transactional banking services currently under the master contract to be ring-fenced, along with up to seven other sub-categories, including school banking, trust accounts, international payments and credit/purchasing cards.

Government agencies have 93 Crown accounts, 78 departmental accounts and 175 trust accounts. The Treasury processes the biggest volume, with $245 billion of cash in and out each year. On a merchant services level, the public sector operates 170 merchant services with $718 million worth of transactions. The state has 7,811 cards on issue across the sector.

English first flagged plans to open up banking services to tender in 2010, amid a push by Joyce to seek all-of-government contracts for everything from legal services to advertising, travel costs, office consumables, computers and vehicles in an effort to wring out cost savings and urging from the Green Party, which felt Westpac had held the contract uncontested for too long.

The winning bidders committed to establishing a $10 million innovation fund to improve banking systems for the wider public benefit.

Westpac New Zealand chief executive David McLean said the government spelled out its digital aspirations, something he said his bank believes it can meet.

(BusinessDesk)

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more