New government wants Kiwibank big enough to take on its business within 6 years but doesn't provide detail on how state owned bank will get there

The incoming government's giving Kiwibank six years to grow to the point where it's capable of taking the role of government banker off Westpac.

This is one detail to emerge in the coalition agreement between Labour and NZ First. Something missing, however, is any suggestion of a banking inquiry probing the dominance of Australian owned banks in New Zealand, which was a NZ First policy during the election campaign.

Among its policy plans the Labour-NZ First agreement says; "Investigate growing Kiwibank’s capital base and capabilities so that it is positioned to become the Government’s Banker when that contract is next renewed."

Government banking contracts were tendered in 2015 for the first time since the late 1980s with Westpac retained as the Government's key transactional banker for eight years. Kiwibank by its own admission didn't have the scale to contest this business when it was on the table.

Labour and NZ First, however, want it to by 2023 when the government banking business is likely to go out to tender again. However, the coalition agreement provides no detail on how Kiwibank, which is now owned by NZ Post, the NZ Super Fund and the ACC, will grow to the necessary scale in the needed areas, nor whether taxpayers' money will be used to assist the bank in doing so.

Other key issues included in the Labour-NZ First agreement, see more here, for the banking and finance sector include; Examination of agricultural debt mediation as well as receivership fees and charges, review and reform of the Reserve Bank Act, strengthen the Overseas Investment Act and undertake a comprehensive register of foreign-owned land and housing, and establish a Housing Commission.

On immigration the two parties say they will pursue shared priorities to ensure work visas issued reflect genuine skills shortages and cut down on low quality international education courses. They also pledge to take serious action on migrant exploitation, particularly of international students.

Meanwhile, the confidence and supply agreement between Labour and the Greens sets out that all new legislation will have a climate impact assessment analysis. Additionally the Resource Management Act will be "better enforced."

The Labour-Greens deal also pledges to deliver innovative home ownership models within the state and broader community housing programme. Additionally a rent to own scheme, or similar progressive ownership models, will be developed as part of Labour’s Kiwibuild programme.