Small Towns And Big Banks
The Victorian Government is about to impose a city-centric banking model on country towns.
Under the State Purchasing Contract, all government entities such as local councils, schools, kindergartens and health facilities will be forced to bank with either the NAB, Westpac or the Commonwealth Bank.
The 5-year tender will come into effect on 1st October.
It is a move that is being strongly rejected by towns that rely on community banks.
Bev McArthur, Member for Western Victoria Region, has made those concerns clear in the Victorian Parliament – directly appealing to the State Treasurer for change.
“What will you do to stop this Melbourne-office, spreadsheet-driven policy hurting voluntary, local organisations at the heart of country Victorian towns?” Mrs McArthur asked.
“This will cause great damage to groups like the Avoca and Beaufort Community Banks, which to date, have retained the accounts of many local education and health providers.
“These aren’t billionaire bankers - but enterprises founded, run by, and supported by local people.
“In turn, they return funds to build and maintain local facilities and support voluntary groups.”
The change expands the current contract from Westpac, to include the NAB and Commonwealth.
In reality, many organisations continued with accounts at the Bendigo Bank because the 2018 Westpac tender was not strictly enforced.
“But the October mandate changes all that,” Mrs McArthur said.
“And with that change will go tens of thousands of dollars that have otherwise been re-invested into local communities under the Bendigo Bank community model.
“For example, transferring Government accounts away from the Bendigo, could result in community donations dropping from $100,000 to $60,000 in a year.
“That sort of money can achieve a lot in a little town. It’s meaningful – and represents survival for many volunteer organisations.
“The big banks abandoned country Victoria in recent years – the last thing we should be doing is rewarding them with guaranteed business. It’s only thanks to community banks like Avoca and Beaufort that some towns still have accessible banking services.”
“They need our support – and the Treasurer needs to act.”
12 September 2021
