Kiwibank as a NZ model for government owned businesses

Kiwibank - NZers should love it. It's profitable, has reduced banking margins in the market by several percent and is singlehandedly saving NZ Post from death by precipitous collapse of snail mail.

To me this represents a fantastic model for government to influence mature, margin-rich "incumbentopoly" markets for the benefit of consumers.

My next targets: the main spends for NZers. Groceries, power, phone, petrol, insurance.

Kiwipetrol

It already looks like petrol is being dealt to with the acquisition of Shell NZ by Infratil and the NZ Superannuation Fund.

Kiwiphone

Phone has been addressed with Telecom in a regulatory stranglehold.

Kiwipower

Power is already dominated by government owned companies. It actually needs divestment and a change of philosophy for whoever is left.

Kiwigrocer

To me the grocery market is the top candidate for intervention. The Warehouse, our largest retailer, had to abandon its foray into groceries after a ferocious double-team by Progressive and Foodstuffs. With two players there is little to prevent collusion, and between them they're certainly squeezing the life out of their suppliers.

Post the recession there are acres of vacant light industrial space that could be easily converted. Being shopping destinations in themselves, supermarkets don't have to pay over the odds for sought-after space in malls or high streets.

Kiwisurance

The bottom end of the insurance market is full of restrictive fine text and slothful claim processing times. A provider of basic, cheap, non-nonsense policies is needed. This could be an offshoot of NZ Post/Kiwibank.