Alternative means of providing banking and like services in regional Australia
Media Releases

Media release, 1 April 1998

HOW IS LOCAL GOVERNMENT WORKING TO SAVE RURAL FINANCIAL SERVICES?

How Local Government responds when the local bank closes will be in the spotlight at a public hearing tomorrow. Local Government representatives will be appearing before the powerful House of Representatives Standing Committee on Financial Institutions as part of its wide ranging inquiry into alternative banking for regional Australia.

David Hawker MP, Chairman of the Committee, said "Local governments are at the coal face of this issue and are often the driving force behind efforts to maintain financial services in their communities. We are interested in exploring further the ways many local councils have surmounted the difficulties of having bank branches close and what future strategies are available".

At the public hearing, the Australian Local Government Association (ALGA), which represents about 710 Local Government Councils throughout Australia, will discuss its concerns about the continuing erosion of the range of services available to Australians in rural locations and highlight the impact that bank closures have had on rural local councils and the communities they represent. ALGA will also raise a number of proposals aimed at ensuring rural communities retain basic financial services.

"The Committee is aware of a number of examples where local councils are working closely with local communities, state governments and agencies such as CreditCare to establish financial services in towns where bank branches have closed. Herberton is one example. Such cooperative arrangements between organisations have great potential to solve the problems brought about by the rationalisation of bank branches. We want to find out more about local governments' role in these arrangements".

"One interesting proposal received by the Committee from a council in rural WA suggests that local councils establish their own bank. The Committee is interested in exploring this proposal with ALGA particularly in light of moves by other non-bank institutions, such as retailers and the Pharmacy Guild, towards entering the financial services market."

"Many of the submissions that we have received have come from individual Councils. The Committee is interested in finding out what ALGA is doing at the national level to support and promote the efforts of individual councils".

Release ends //1 April 1998

Further information:
David Hawker MP (Chairman) 02 - 6277 4837
Janet Connaughton (Inquiry Secretary) 02 - 6277 2375
e-mail: EFPA.Reps@aph.gov.au

PUBLIC HEARINGS PROGRAM - CANBERRA
2 April 1998

House of Representatives
Committee Room 2R2
Parliament House
CANBERRA

Thursday2 April 1998

10.15am - 11.15am - Australian Local Government Association

• Mr John Campbell, President
• Mr Chris Bell, Policy Manager, Finance and Microeconomic Reform
• Mr John Pritchard, Policy Manager, People and Community
• Ms Jane O'Dwyer, Media Officer

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