Commerce gets lowest ministerial ranking

There is concern that a low ranking for the new Commerce Minister may signal an unwillingness from the Government to take the financial services sector seriously.

Tuesday, October 7th 2014, 6:00AM

by Susan Edmunds

National's Epsom candidate Paul Goldsmith will take over from Craig Foss from Wednesday.

But he is the lowest-ranked minister, and is outside Cabinet.

Claire Matthews, of Massey University, said that had prompted real concern.

“I saw a tweet that said the Cabinet list was out and I went to have a look. I went through the list and thought maybe they hadn’t got one, then I realised he’s the last on the list. He’s the most junior of the lot. That concerns me.”

She said it was a significant portfolio with the potential to have a big impact on New Zealanders. “To have the most junior minister, and outside cabinet says a lot about how the governing party sees business. I’m stunned. He has responsibility for the Financial Markets Authority, Retirement Commission, Consumer Affairs, there’s really major portfolios within that. And he’s the most junior of the ministers.”

She said there were serious things for Goldsmith to attend to, such as the Financial Advisers Act review next year. “We need to know what he’s planning to do. I’d want him to make sure the Financial Advisers Act is done properly, not half-heartedly.”

The low ranking of the Commerce Minister might indicate that the Government saw it as less important and not likely to get the time and resources the portfolio needed, she said.

IFA chief executive Fred Dodds said his organisation would look to have a meeting with Goldsmith before long, to update him on the situation for advisers, and the important aspects of the Financial Advisers Act. “It’s an important time to be Minister of Commerce with the review of the Act coming up.”

Bruce Tichbon, who represents investors who lost money in Ross Asset Management, said Foss’ demotion should be interpreted as paying the price for botching the financial markets.

He said Goldsmith had much to do to restore NZ to being a country where investors could save for their retirement without being exposed to undue risk caused by poor governance by the authorities. “The new Minister must get investor confidence to more than 90%, and quickly, if we as a nation are to have a decent and secure future.”

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