H0211 ROBERT JOHN (BOB) SIMPSON

Interviewer: Jenny Campbell

Abstracter: Judith Christie

Interview: 11 July 2014

TRACK ONE

00.00 Born 1947 in Invercargill.

01.20 Knew about the SOUTHLAND SAVINGS BANK as an Invercargill resident. Bank started in 1864, and was an early savings bank along with a bank in OTAGO. Became a member of the LABOUR PARTY in Auckland in 1973 or 1974. Campaigned for J B MUNRO (INVERCARGILL MP) and AUBREY BEGG (AWARUA MP) and was aware that the government appointed Trustees of TRUST BANK SOUTHLAND (the bank had changed its name in 1962).

02.50 Self was appointed in 1986 as a TRUSTEE of TRUST BANK SOUTHLAND and was aware of discussions between LABOUR GOVERNMENT and the ASSOCIATION OF TRUST BANKS to change the structure. Government provided a guarantee on all deposits. Only bank in the world to offer INTEREST on CHEQUE ACCOUNTS.

03.45 Discussions re exit of Government from GUARANTEE SYSTEM. Bank trustees ran the bank and made modest donations to the community. Government converted each trust bank to LIMITED LIABILITY COMPANY. In 1988 SELF APPOINTED CHAIRPERSON of TRUST BANK SOUTHLAND COMMUNITY TRUST. Twelve trustees, representing SOUTHLAND PROVINCE, QUEENSTOWN and TAPANUI. Three of the Trust members including self also became DIRECTORS of TRUST BANK SOUTHLAND LTD.

06.00 Feeling around the country was that having several small banks was risky, and so capital value of $39million required to operate. Only qualifying banks were AUCKLAND SAVINGS BANK and TRUST BANK CANTERBURY. TRUST BANK SOUTHLAND and TRUST BANK OTAGO had around $20million. Encouragement therefore to amalgamate the banks. Chairs of the Community Trusts met often in 1988 to try to agree. Tricky because some people didn’t have a great understanding of the way things worked.

08.30 DON BRASH was a director of a company called TRUST BANK HOLDINGS LTD and assisted the trusts to come up with a shareholders agreement and explain the package to the trustees and work out values of different banks. Decided that a bank be set up called TRUST BANK NEW ZEALAND.

09.30 TARANAKI SAVINGS BANK did not become involved. WEST COAST BANK reluctant to join and joined AUCKLAND SAVINGS BANK instead. Describes.

11.10 ASB did not want to be controlled by smaller banks. Wellington bank was relatively small. Negotiations eventuated in the ASB pulling out. Their MANAGING DIRECTOR DENNIS FERRIER and Chairman TERRY HOWES disagreed with Don Brash, described in Brash’s recent book.

13.00 All banks with exception of Auckland, Westland and Taranaki swapped their shares For shares in TRUST BANK NEW ZEALAND. In September 1988 SOUTHLAND’S SHARE was 13.9%, OTAGO 13.5%, CANTERBURY was 32%. Challenge was that TRUST BANK didn’t have trust representation in Westland or Taranaki or Auckland. DAVID MCLISTER appointed as Managing Director of TRUST BANK AUCKLAND LTD.

End of Track One

TRACK TWO

00.00 Majority of Directors appointed by the COMMUNITY TRUST and self was appointed to TRUST BANK NEW ZEALAND LTD. Encouraging the banks to work co-operatively was challenging. Describes. 27 BRANCHES built over the following years – cost kept the dividends down.

01.30 TRUST BANK SOUTHLAND COMMUNITY TRUST felt that having shares in a nationwide bank was a relatively safe thing to do. Reasonable representation in RURAL BANK but little in COMMERCIAL BANKING. Southland formed a commercial branch which gave an additional focus to the bank. DIVIDEND FLOW modest from 1988 – 1994. COMMUNITY TRUST in OTAGO wanted to self half of its shares to diversify. In 1994 there was a float of TRUST BANK SHARES. SOUTHLAND TRUST purchased more shares. Describes.

04.00 DON BRASH Managing Director of TRUST BANK New Zealand. Left in 1990 to become the GOVERNER OF THE RESERVE BANK. FRANK DIXON, who was MANAGING DIRECTOR TRUST BANK CANTERBURY became Managing Director of TRUST BANK NEW ZEALAND. STEPHEN FRANKS from CHAPMAN TRIPP became involved – later an ACT MP.

05.10 TRUST BANK SOUTHLAND had the HIGHEST PERCENTAGE OF SHARES per head of population. Otago slightly smaller with twice the population. When the bank was floated, decided that a smaller number of directors be used.

End of Track Two

TRACK THREE

00.0 DON BRASH became GOVERNOR OF RESERVE BANK in 1988. Had a valuable role in getting the Community Trust together. Knew everyone’s names.

01.10 Many years in competition with the SOUTHLAND BUILDING SOCIETY helped in making TRUST BANK Southland strong. INVERCARGILL LAWYERS were not as involved in MORTGAGES as much as in Dunedin. VINCE PETRIE, MANAGING DIRECTOR was enterprising person who spent money on buildings and the image of the bank.

02.10 GRAHAM PRENDERGAST took over from DON BRASH, and then FRANK DIXON from TRUST BANK CANTERBURY.

02.50 Change of government and self not reappointed once the bank was floated, but remained for a time on an advisory board in Invercargill. Different attitudes from various people. Continued pressure after the float for further diversification. TRUST BANK NEW ZEALAND almost sold to TRUST BANK AUSTRALIA. POST OFFICE bank became ANZ.

End of Track Three

TRACK FOUR

00.00 NATIONAL BANK made an offer, then Directors put the bank up for sale and it was purchased by WESTPAC. COMMUNITY TRUST OF SOUTHLAND was paid out $158 million so dividend stream has grown dramatically. Describes

02.40 Mentions VINCE PETRIE, COLIN BALLANTYNE, COLIN HAMILTON and MICHAEL GOODCHILD.

3.20 Self was employed as an ARCHITECT to purchase a building in DON STREET and alter it.

04.10 Self is now a Trustee of the DAN DAVIN LITERARY FOUNDATION, which started as self was leaving the Community Trust in 1994. TONY STONE had written the MAYOR TIM SHADBOLT, and the DAN DAVIN TRUST was set up. Describes.

05.00 STEVE MULQUEEN helped to set up the Dan Davin Trust. Community Trust purchased a DAN DAVIN BUST and self helped to organize funding.

05.50 Recent 25th ANNIVERSARY of the Trust. COLIN BALLANTYNE and self cut the cake. Has a photograph of WAYNE HARPUR, ALISON BROAD, TRACY HICKS and ROBIN CAMPBELL, all CHAIRS.

06.45 Community Trust provided money and self chaired Committee to PRODUCE A BOOK on Southland.

07.45 Discussions between SOUTHLAND BUILDING SOCIETY and TRUST BANK SOUTHLAND re possible amalgamation. Describes

08.30 Self has some concerns about the skills that organisations have in WRITING UP PROPOSALS FOR FUNDING. Describes

10.00 Self believes that Community Trust should have invested more in OWNING PROPERTY. Describes

10.50 Trustees appointed for between one and four years. All chairs appointed for two years, then reappointed by the LABOUR GOVERNMENT until six years expired. Self left in 1994. Describes.

12.00 Challenge in obtaining the right balance on Trusts, including experience, skills, geography, gender, race etc. Southland Community Trust first to ask for NOMINATIONS FROM THE COMMUNITY. Formal process is that the GOVERNOR GENERAL makes recommendations describes process. Some Trustees have served twelve years.

End of Track Four

TRACK FIVE

00.00 COLIN BALLANTYNE appointed chair when self left, and boards were given responsibility to choose their own Chairs. Describes. Mentions VICKI BUCK, CHAIR of CHRISTCHURCH TRUST. Mentions JOHN PALMER, who was involved in Kiwifruit and Air New Zealand.

2.00 Most important thing was the calibre of the people. Enjoyed the company of GABRIEL FARRY, former MAYOR OF GORE. Describes. Mentions GORE CLOCK TOWER.

04.20 COLIN BALLANTYNE and self were on opposites of the political fence but have a mutual respect for each other. Describes.

05.00 Higher level of expertise available on Community Trust, which has benefited Southland.

05.45 Self present at events when funds given. Surprised that TAPANUI and MOSSBURN achieved the provision of significant public buildings. Describes.

08.00 Concerned that SPORTING ORGANISATIONS are better than the ARTS COMMUNITY at applying for FUNDING.

08.30 EASTERN SOUTHLAND GALLERY funding was a success. GABRIEL FARRY and JIM GEDDES involved in funding. Describes. Mentions RALPH HOTERE and JOHN MONEY COLLECTIONS.

11.15 Changing number of left leaning and right leaning members on Trusts. CAM MCCULLOCH won against self to be Chair of TRUST BANK NZ, then self was appointed as an outside Director. NEVILLE LAMBERT put up a case to vote again, which reversed vote.

13.40 Self wore several hats on various organisations. Describes.

14.40 Believes that people are constrained by not having the information to do the job correctly.

End of Track Five

TRACK SIX

00.00 Challenges at TRUST BANK NZ because most of Directors were also Directors of local boards.

00.45 Being involved in nominating people for positions of responsibility is challenging. Self knew ROGER DOUGLAS and RICHARD PREBBLE through Labour Party involvement. Not many options of university educated people to stand up for places on boards. Concerned that people with the right skills are not encouraged to be leaders in the community. This leads to people remaining too long in their positions.

03.30 Policy to balance gender, geography, etc. which was a challenge for the government. Describes.

05.20 Giving away money well is a difficult thing to do. Discussion regarding ongoing structure of RUGBY PARK. Self believes that too much money is paid to professional sportspeople, SPORTS SOUTHLAND and the STADIUM.

07.15 Annual appointments made by Minister, every four years. Tracy Hicks has returned to the Trust for another two years.

08.00 Self is frustrated that the Community Trust has paid the rent for COMMUNITY TRUST HOUSE, rather than purchasing it. Describes.

10.30 As chair, self encouraged the Community Trust to make a donation to the INVERCARGILL CITY COUNCIL when it was considering a pool on the site of the old COLDSTREAM POOL. Trust donated $25,000 to look at other options. Council then decided to shift the Pool to a site on the GREEN BELT. Not permitted to build there, so now on its current site. Observed that City Council does not have a long term plan for any of its facilities. Describes.

12.50 DOUGAL SOPER stood for mayoralty after MAYOR EVE POOLE’S death, with self’s assistance. Describes.

13.30 Self knew EVE POOLE, who was a trustees of the Community Trust. Self was a fellow prefect with son CLIVE POOLE at SOUTHLAND BOYS HIGH SCHOOL. Self challenged Eve Pool for the Mayoralty in 1989. Describes.

End of Track Six

TRACK SEVEN

00.00 Further describes MAYORAL CAMPAIGN. Financial matters and what self was paid described.

01.50 New LANGE LABOUR GOVERNMENT was a lot younger than the previous National Government. Many people not happy with the changes that Labour made. Recently read HUGH TEMPLETON’S BOOK HONOURABLE MEN. Describes.

03.30 Self motivated to become healthier, after seeing other people become unwell because of their lifestyles. Mentions NORMAN KIRK, DAVID LANGE and DOUG THOMPSON, all of whom died young. Describes. Mentions GEOFF PIERCY, a CITY COUNCILLOR.

07.00 Changing the position of the SWIMMING POOL was a major achievement by self. Also having the capital sum because of the wisdom and fortitude to exchange local shares at the time of change – discouraged to do this by ACTON SMITH.

08.30 NORTH SOUTH MAGAZINE article pointed out the TARANAKI SAVINGS BANK survived and is now doing quite well, but for a long time it didn’t distribute much money. In an area of oil development and a stronger growth area. Describes.

11.20 Self believes that the INVERCARGILL LICENSING TRUST may fade.

12.10 Little professional staff employed during the time that self served on the Board.

13.30 INVEST SOUTH set up as a combined effort by the SOUTHLAND BUILDING SOCIETY and SOUTHLAND COMMUNITY TRUST to provide investment funding. Mixed success and Invest South now totally owned by the Trust. Describes.

End of Track Seven

TRACK EIGHT

00.00 COLIN BALLANTYNE, CAM MCCULLOCH, VINCE PETRIE, LEN PAYNE mentioned. MURRAY HEADS (?), MANAGER OF WESTPAC mentioned, ROY GOODMAN (?) now involved in share broking business in DUNEDIN.

02.00 20TH REUNION held, and photograph of ALISON [BROAD], WAYNE [HARPUR], COLIN [BALLANTYNE] and self taken.

03.00 Rivalry with INVERCARGILL LICENSING TRUST which is an interesting and challenging subject.

End of Track Eight.