Labour may still hand a lifeline to the Government's much-touted surcharge ban. 

The policy was announced with much fanfare last year - with Minister Scott Simpson promising it would be in force by May. 

But he now says the bill's on pause, after David Seymour confirmed ACT won't back it. 

National's now hoping for Labour's support for it to pass, with the Opposition keen to see amendments made so retailers don’t bear the costs of the payments themselves. 

Retail NZ's Carolyn Young says she think's it's unlikely the banks can be forced to absorb them. 

"If they can get the banks to absorb the fees, that would be a great outcome."

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