NZ First introduces bill to end ‘woke ideology’ in banking

Monday, 10 February 2025

New Zealand First leader Winston Peters said the draft bill, if passed into law, would ensure fairness and prevent ESG standards from “perpetuating woke ideology in the banking sector being driven by unelected, globalist, climate radicals”.

NZ First has carried through on its promise to introduce a private members’ bill to prevent banks from debanking the likes of petrol stations, coal miners and farmers for environmental or social reasons.

Last week, Resources Minister Shane Jones said it was not the business of banks to impose a “moral order on New Zealand”.

Jones said New Zealand First would draft a private members’ bill to ban banks from discriminating against businesses because of the sector they were involved in when deciding whether to give them a loan.

The party said on Monday it had introduced a members’ bill aimed at preventing banks from refusing their services to businesses for environmental, social, and governance (ESG) reasons on pain of a $500,000 fine.

The bill was a response to revelations that BNZ had told a coal mining company in the West Coast town of Reefton that it no longer wished to bank it.

However, earlier media reports had focused on petrol stations threatened with losing their access to lending accounts, and banks demands that farmers in New Zealand reduce their climate emissions to levels below those of Australian farmers.

The mining industry is calling out banks for what it sees as ‘moral judgments’ over climate policies. With NZ First drafting a law to stop industry-based discrimination, the debate over financial ethics and fossil fuels is heating up.

New Zealand First leader Winston Peters said: “This Bill ensures fairness and prevents ESG standards from perpetuating woke ideology in the banking sector being driven by unelected, globalist, climate radicals.”

The Financial Markets (Conduct of Institutions) Amendment (Duty to Provide) Amendment Bill, if passed into law, would mean no New Zealand business could be denied banking services unless the decision is grounded in law.

“By amending the Act, it will mean decisions must be based on lawful or commercial grounds, and stop banks imposing woke-riddled, expensive, deadweight costs on our productive sector,” Peters said.

The general policy statement of the draft bill reads: “This amendment is intended to prevent registered banks ‘debanking’ or withdrawing banking services from New Zealanders, body corporates or companies, whose political views or outlook may not align with the sensibilities of that institution.

Resource Minister Shane Jones visiting OceanaGold’s Waihi mine in early February.

“This includes the withdrawal or refusal to provide banking facilities and services from businesses on murky ‘environmental, social or governance’ moralising. The New Zealand economy needs everyone and every business to play its part to maintain our status as a first world country. Access to banking services and facilities is fundamental.”

It goes on to say: “This Bill removes moralising from banking and leaves decision-making where it ought to be, based on law or for valid and verifiable commercial grounds. This means it is not open slather for persons or companies with poor financial records.”

However, it said it would stop “good people and companies losing fundamental services because of how they think and what they do”.

Jones conceded last week that such a law would also cover other legal activities that some banks are not keen to be involved with, and in some cases decide not to lend on for moral reasons, including companies involved in sectors like alcohol, prostitution, higher interest lending, tobacco and gambling, which was important for the horse-racing industry.

He also acknowledged the decision by BNZ to stop banking the exclusive Gloriavale Christian community.