Labor Delivers on Regional Banking

Date: 27 March 2001

Labor's banking policy will help return much-needed services to rural and regional Australia, according to the Shadow Minister for Regional Services, Territories and Local Government, Senator Sue Mackay.

"Regional Australians will also be pleased to know that Labor will introduce, as part of the Social Charter with banks announced today, a protocol covering branch closures.

When a bank proposes closing a branch, it will be required to consult with communities over a six-month period to allow communities to find alternatives.

"Under the Social Charter, Labor also has a strategy for restoring banking services to communities. Labor will identify the areas most in need and then negotiate under the auspices of the Social Charter to have banks restore these services," Senator Mackay said.

"The Social Charter will be legally binding on the banks, and will be backed by a strong complaints resolution mechanism," she said.

The banking policy also supports an expanded role for Australia Post's network of 2500 regional outlets. It states that:
* Labor is committed to improving access to regional services - including banking and financial services - through Australia Post and other vehicles.
* Australia Post will play a central role under a Beazley Labor Government as a platform for the delivery of services, including
emerging digital data services, particularly to rural and regional Australia.

"On the other hand, Senator Ian Macdonald, the Minister for Regional Services, Territories and Local Government, has done almost nothing to help
restore banking services in the regions. That is what you would expect from a government only concerned with the big end of town.

"When questioned about this in a recent Senate estimates hearing, all he could say was that he had held a few meetings with banks," Senator Mackay said.

"And the Government's plan for restoring banking and other services to regional Australia - the Rural Transaction Centres program - is a failure.

Two years into the program only 19 transaction centres have been set up. The Government had promised to have 70 operational by last June and 500 over the five-year life of the program.

"Labor is not opposed to the Rural Transaction Centres program - regional Australia needs the services it is supposed to provide. But we did oppose the sale of the second tranche of Telstra, which funded the program. And we asked why the Government blocked Australia Post's tendering for Rural Transaction Centre contracts.

"It's now clear that this happened because Senator Macdonald and the Coalition have shown just how much they care about regional services with their bill to deregulate Australia Post, the Postal Services Legislation Amendment Bill 2000, which poses the serious threat of fewer services in the regions.

"Australia Post itself said, during the Senate inquiry last year into the deregulation bill, that it would lose $200 million a year in revenue, which might force it to charge more for some services in rural and remote Australia.

"Labor supports a robust Australia Post that serves rural and regional Australia with banking and other services."

For further information

Contact:	Jeannie Zakharov
Union:	Labor Council of NSW
Phone:	02 6277 3336
WWW:	http://workers.labor.net.au/

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