We need a Government Bank.
In Estimates I sought a commitment from the Government that they would ensure that banking services remain in the regions.
I got a wish washy answer, albeit the Minister did acknowledge the Government does have some sort of obligation to provide banking services.
The Government has three months to respond to the RRAT Senate Committee’s report calling for Government action on the closure of branches in the regions.
I will keep you posted.
Economics Legislation Committee
03/06/2024
Estimates
TREASURY PORTFOLIO
Department of the Treasury
Senator RENNICK: The RRAT Senate committee just handed down a report on the closure of banks in the regions. One of the recommendations was that the government work with both Australia Post and the RBA to create government owned facilities, I guess you’d say, to make sure that regional Australians and all Australians have access to banking facilities. I know the RBA is an independent authority, but ultimately the buck stops with the government, and I assume that Treasury would need to be involved in this in some way. Is the government prepared to look at ensuring that all Australians have access to banking services across Australia?
Senator Gallagher: I haven’t seen the report that RRAT’s handed down, but the government will respond to that in the normal way. I think, from our point of view, there are a couple of things. One is that we need to ensure that banking services are available to all Australians in the way that Australians choose to engage. Some people want to do it online; others don’t. I’ve certainly been aware of more concern, particularly around the availability of facilities. I think we need to make sure that the banks themselves provide a minimum level of service, particularly to rural and regional customers, that is commensurate to what they would get in the cities. On the Australia Post thing, that sounds like that was a recommendation. I think one of the challenges with that, and I’m sure RRAT probably had a look at it, is the capability of some of those outlets, particularly the small mum and dad owned Australia Post outlets, to essentially perform the function of a bank, with the security, training and all of those things. For many of those owners of those businesses, it’s not necessarily something they want to take on.
Dr Kennedy: From a Treasury perspective, the proposition that regional people could expect banking services, as the minister outlined, of similar or same quality is well accepted. How to solve that problem is an important issue. I haven’t had a chance to read the inquiry, but I’m broadly aware of the recommendations and will take a look at them.
