By Mike Bain ; The Daily Examiner.

New Zealand First has introduced a Member’s Bill aimed at preventing banks from refusing their services to businesses because of the current “Environmental, Social, and Governance (ESG) Framework”.

NZ First MP Andy Foster has introduced a bill to the member’s ballot to stop banks from withdrawing services from clients for “woke” reasons like trying to reduce their exposure to polluting industries.

If enacted, it would mean banks would no longer be able to withdraw services from customers on environmental or social grounds. Any withdrawal of services would need to be made on a purely commercial basis. Banks found to breach the new rules could be liable to fines of up to $500,000.

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

The ‘Financial Markets (Conduct of Institutions) Amendment (Duty to Provide) Amendment Bill’ will mean that no New Zealand business can be denied banking services unless the decision is grounded in law.

This Bill amends the Financial Markets Act 2022 to remove the ESG Framework’s stranglehold on corporations.

“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.

Reaction to the proposed Bill would mean consultation from within the industry to provide a view through the parliamentary consultation process.

New Zealand Banking Association chief executive Roger Beaumont said banks made “lending decisions on a case-by-case basis taking into account their credit policies and risk appetite, which will vary from bank to bank”.

“Banks must also comply with many regulatory obligations. If a bank can lend within its credit risk policy and regulatory obligations, it likely will. That is the business of banking.