The Commerce Commission has received an application from the New Zealand Banking Association (NZBA) on behalf of its member banks and others, seeking authorisation to collectively negotiate over cash-in-transit (CIT) services with Evergreen International NZ, LLC (Evergreen, trading as Armourguard). Authorisation is sought for CIT customers to negotiate and subsequently enter a collective agreement for a period of up to eleven years.
CIT services include the transport, management and processing of bulk cash for banks, the public sector, financial institutions and retail customers, as well as the replenishment of ATMs and bulk cash storage and management.
CIT services are important for banks and retailers to manage their use of cash. In seeking authorisation, the NZBA asserts that the proposed collective negotiation will result in significant benefits, including improved sustainability of CIT services, reduced transaction costs, and enhanced financial inclusion and resilience. The NZBA also asserts that the proposed arrangement will not result in any public detriment.
The NZBA has also applied for interim authorisation of the proposed arrangement. This would allow participants in the proposed arrangement to collectively negotiate with Armourguard to extend current terms while the substantive application is under consideration, plan and prepare for collective negotiation, and commence negotiations (but not to enter any agreements).
