Stuart Smith, chairman of Parliament's Finance and Expenditure Committee, dropped in favour of National Party insider Cameron Brewer

The National Party has demoted the Chairman of the Finance and Expenditure Committee (FEC), Stuart Smith, and given his role to Cameron Brewer — a former Auckland councillor and spin doctor.

Smith had led the key committee since the Coalition formed in 2023 and was chairing the high profile parliamentary banking inquiry. But when hearings resumed this week, he was out. Brewer was chairing the session, despite not even being a committee member.

The change was not announced publicly and no clear reason has been given. The banking inquiry will continue, but the report will now be guided by a chairman who has not heard the bulk of submissions.

The committee has seen other changes. Catherine Wedd left to chair the Environment Committee and was replaced by former economist Dan Bidois, leaving Nancy Lu, a former accountant, as the only woman on the Government side.

Along with MPs from the FEC, the banking probe also features those from the Primary Production Committee.

Barbara Edmonds, Labour's finance spokeswoman and the most senior opposition MP on the committee, said she didn’t understand why Smith had been demoted as he had been a “good and fair” chairman. 

Edmonds was also surprised Lu had been passed over for the promotion, as she had a financial background and had been a “team player” for the Government.

The Prime Minister’s office did not respond to a request for comment, but Smith told the NZ Herald Christopher Luxon wanted to give newer MPs a “chance to develop”. 

Chairing the FEC is often seen as a training ground for future ministers. Edmonds, for example, chaired the committee before becoming Minister of Revenue and Economic Development in 2023.

It may be that Luxon sees Brewer—who has a long history with the National Party—as a better candidate for a future ministerial post than Smith, who has an independent streak and won his Kaikōura seat by challenging a sitting National MP.

Smith was a vineyard owner and South Island farmer. Brewer, the MP for Upper Harbour since 2023, was previously Chief Executive of the Newmarket Business Association, did two terms as an Auckland Councillor, and was press secretary to Auckland Mayor John Banks.

In the banking inquiry's first public hearing last October Smith asked ANZ NZ CEO Antonia Watson her views on the potential for a tax on big banks' profits, as exists in Britain and Australia.

Finance Minister Nicola Willis has repeatedly spoken about wanting better banking competition. Luxon, meanwhile, has said he wants to see increased foreign investment across a range of sectors including banking and fintech.

Populist posturing

The change may risk undermining the banking inquiry, which is already viewed by some as unserious political theatre. 

Martien Lubberink, an associate professor at Victoria University with an extensive background in bank capital and regulation, said his impression was the committee members were “very ordinary politicians asking populist questions”. 

National and its coalition partners were considering relaxing the Reserve Bank’s capital requirements—raising the risk of financial crises—just to “get the farmers off their backs.”

Shortly after we spoke with Lubberink, NZ First MP and senior minister Shane Jones announced in a speech he would introduce a Members Bill forcing banks to lend to all sectors. 

He said big banks were “in thrall to climate group-think” and were “inflicting their luxury beliefs” on the farming industry, while “actively de-banking mineral firms”. 

NZ First would propose a law which would allow regulators to deregister banks who signed up to international climate cooperation agreements.

“We cannot let them hold our economic development to ransom to suit the privileged cabal employed on environmental, social and inclusion matters,” Jones said. 

While he holds an associate finance portfolio, Jones has no responsibility for banking regulation and other political parties may not support the Private Members Bill.

Jones also said he wanted to "acknowledge the work of ACT MP Mark Cameron on this issue so far," describing Cameron as "a champion for the farming sector." Cameron chairs the Primary Production Committee.