Footnotes

Executive Summary

[1]        Supplementary submission 117A p. 2.

Chapter 2 - Bank branch closures in rural, regional and remote Australia

[1]        The literature on this matter is extensive. See for example, ‘The dollars and sense of bank consolidation, bank mergers and the Trade Practices Act’, ACCC Journal No. 40, p. 14; Professor Evan Jones, ‘Rural Finance in Australia: A Troubled History’, Rural Society, vol. 12, no. 2, p. 160; Malcolm Edey and Brian Gray, The Evolving Structure of the Australian Financial System, Reserve Bank of Australia, 1996; Siobhan McDonnell and Neil Westbury, Giving Credit where it’s due: The delivery of banking and financial services to Indigenous Australians in rural and remote areas, CAEPR, Discussion Paper, No. 218/2001, June 2001.

[2]        Malcolm Edey and Brian Gray, The Evolving Structure of the Australian Financial System, Reserve Bank of Australia, 1996.

[3]        David Bell, Committee Hansard, 14 November 2002, p. 75, Professor Jon Altman, Committee Hansard, 14 November 2002, p. 79. See also Chris Connolly and Khaldoun Hajaj, Small Business Banking: Issues Paper, Financial Services Consumer Policy Centre, University of New South Wales, April 2002, p. 27.

[4]        Table 2.1. See also Reserve Bank of Australia, ‘Bank Branch Trends in Australia and Overseas’, Reserve Bank of Australia Bulletin, November 1996, p. 1; Submission by the Office of Regulation Review to the Prices Surveillance Authority’s Public Inquiry into Fees and Charges Imposed on Retail Transaction Accounts by Banks and Other Financial Institutions, March 1995, p. 8 and APRA, Points of Presence, Summary of Branches, 30 June 2001.

[5]        See also Reserve Bank of Australia, Bulletin, CO5 Points of Access to the Australian Payments System, November 2002, Table S22. See also Chris Connolly and Khaldoun Hajaj, Small Business Banking: Issues Paper, Financial Services Consumer Policy Centre, the University of New South Wales, April 2002, p. 27.

[6]        The table is based on statistics taken from Table 2.1, the House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services, Money too far away, March 1999; Reserve Bank of Australia, Bulletin, September 1999, table S29; and APRA, Points of Presence, Summary and changes from 2001 to 2002, http://www.apra.gov.au/satistics/pop/ARIABreakdowns and Movements.xls, 2003.

[7]        APRA figures show that the increase in the number of branches can be attributed to the expanding network of Bendigo Bank Ltd branches. The number of branches has grown from 180 in 2001, to 329 in 2002 to a further 353 by June 2003 (see Table 4.1, p. 47).

[8]        Although the fall in bank branch numbers seems to have been arrested, there was a decline in the overall number of building societies and credit union branches over the same period. This matter will be taken up in chapter 8

[9]        APRA, Points of Presence Database, as at December 2003, ARIA Breakdowns and Movements. The term ‘blank’ in the table means that institutions did not know where to classify the branch. See explanation given by Mr Earl Burgess, APRA, Committee Hansard, 25 February 2003, p. 185. The ARIA classification is a classification of postcodes in Australia.

[10]      Committee Hansard, 14 November 2002, p. 82. See chapter 11 for a more detailed discussion on Indigenous communities in remote Australia. Note also the findings of Mr Chris Sidoti, former Human Rights Commissioner, who stated that the Commission had heard that 45 shires across Western Australia have no direct access to a bank branch. The combined population of those shires is over 89,000 people. Chris Sidoti, ‘The human rights of older Australians in the bush’, Speech, Rural Ageing Seminar, Bungaree Station, 1 November 1999, p. 4 of 7 http://pandora.nla.gov.au/pan/13170/200010711/www.hreoc.gov.au/speeches/humanrights/hr_older_aus_bush.html (29 October 2002).

[11]      Christopher Kent and Guy Debelle, Trends in the Australian Banking System: Implications for Financial System Stability and Monetary Policy, Research Discussion Paper, Reserve Bank of Australia, March 1999, p. 2. See also Gary Banks, Chairman, Productivity Commission, ‘Meeting the challenge of change in regional Australia’, an address to Renaissance of the Regions, Institute of Public Administration Australia, Melbourne, 9 November 2000, p. 9.

[12]      Commonwealth of Australia, Financial System Inquiry Final Report, March 1997, p. 122 (The Wallis Report).

[13]      In 1997, the Wallis Report stated: ‘Australia has actively and irreversibly embraced globalisation...While globalisation of wholesale markets is already well advanced, most retail financial markets have scarcely been affected. It is clear, however, that the new technologies and techniques which will stimulate change are now imminent.’ Commonwealth of Australia, Financial System Inquiry Final Report, March 1997, pp. 6–7.

[14]      Submission 121, p. 3.

[15]      Leon A. Davis, Chairman, Westpac Banking Corporation, Deputy Chairman, Rio Tinto, ‘The Social Responsibilities of Corporations’, Address to the Menzies Research Centre, Melbourne, 18 May 2001. Mr Graeme Samuel, also referred to the old world of protected markets which ‘engendered feelings of comfort and certainty’. Graeme Samuel, ‘A Changing Australia: The Business and Social Imperatives’, a presentation to the Institute of Chartered Accountants in Australia, Business Forum 2001, 21 May 2001, p. 4. John Unkles also wrote of many people who still hold onto ‘a sense of nostalgia about the banks’ personal service in the “good old days” and their widespread presence in rural communities’. John Unkles, ‘Show me the money...and the old-fashioned service!’, Journal of Banking and Financial Services,  February 2001, p. 3.

[16]      Submission 117, p. 2. The ABA has consistently argued that ‘the decline in bank branch numbers is a consequence of competitive forces, demographic movements and changes in consumer demand that emerged in the 1980s and 1990s’. It submits branch closures have been part of the evolutionary process; that competition has driven the development of a wide range of alternative banking facilities and this level of innovation is likely to continue.

[17]      See for example, ‘Bank Fees in Australia’, Reserve Bank of Australia Bulletin, June 1999, p. 1. Carolyn Currie, The Wallis Inquiry: is there any empirical support?, http://afbc.banking.unsw.edu.auAFBC10/3/HTML/INDEX.HTM  p. 9, (23 December 2002).

[18]      Christopher Kent and Guy Debelle, Trends in the Australian Banking System: Implications for Financial System Stability and Monetary Policy, Research Discussion Paper, Reserve Bank of Australia, March 1999, p. 11.

[19]      Tom Valentine and Guy Ford. ‘Bank Mergers in the Australian Financial System—Should the Pillars be Pulled Down?’, Economic Papers, 1 December 2001, p. 49. Also under this regulated regime the practice of using interest margins to cross subsidise retail payment services was common place. The Reserve Bank explained that for much of Australia’s post-Second World War history ‘many banking services were provided free or at very low cost as they were cross-subsidised by the wide interest margins banks earned on their intermediation. This was most evident during the period in which bank interest rates were heavily regulated as such regulation ruled out competition via interest rates. The main avenue of competition left for banks was to provide payments and other services at low, or no, charge to customers in order to attract deposits’. ‘Bank fees in Australia’; Reserve Bank of Australia Bulletin, June 1999, pp. 1–2.

[20]      Reserve Bank of Australia, Payments System in Australia, prepared by the Reserve Bank of Australia and the Committee on Payment and Settlement Systems of the central banks of the Group of Ten countries, Basel, June 1999, p. 5.

[21]      Dr David Morgan, ‘Securing Australia’s Economic Potential’, Higgins Memorial Lecture, address by Dr David Morgan, Economic Society of Australia, Canberra, 10 February 1999, p. 3. Australian Bankers’ Association, Selected events in the Evolution of the Australian Financial System, http://www.bankers.asn.au/ABA/adminpages/AdminViewAnArticle.asp?ArticleID=101 (21 October 2003).

[22]      Leon A. Davis, Chairman, Westpac Banking Corporation, Deputy Chairman, Rio Tinto, ‘The Social Responsibilities of Corporations’, Address to the Menzies Research Centre, Melbourne, 18 May 2001.

[23]      Commonwealth of Australia, Financial System Inquiry Final Report, March 1997, pp. 201–12. The Report stated that it appears as though ‘Australian financial intermediaries have too many branches’, p. 210. 

[24]      See Table 2.1 and also Reserve Bank of Australia. C05 Points of Access to the Australian Payments System.

[25]      See KPMG, Small Business Banking in Australia, A Research Report, February 2002, p. 7.

[26]      John McFarlane, interview, ‘Business Sunday’, 8 November 1998.

[27]      Submission 121, p. 3.

[28]      ibid.

[29]      Christopher Kent and Guy Debelle, Trends in the Australian Banking System: Implications for Financial System Stability and Monetary Policy, Research Discussion Paper, Reserve Bank of Australia, March 1999, p. 16.

[30]      William Ferguson, ‘A Banker’s Perspective on the Future of the Financial System’ Reserve Bank of Australia, 1996, p. 199. Despite the high rate of technological progress during the early 1990s, the Wallis Inquiry in 1997 saw the necessity for financial markets to demonstrate commitment and vision to introduce electronic commerce. It suggested that technology driven innovation was profoundly reshaping the financial services industry and that ‘The development of networks and improved communications infrastructure is lowering the cost of financial services activities substantially increasing capabilities and choice. It is introducing a range of new participants...and challenging the role of traditional suppliers and intermediaries.’ Commonwealth of Australia, Financial System Inquiry Final Report, March 1997, p. 117. See also Carolyn Currie, The Wallis Inquiry: is there any empirical support?, University of Technology, Sydney, p. 7, http://afbc.banking.unsw.edu.au/AFBC10/3/HTML/index07.html (23 December 2002).

[31]      Ian R. Harper, Professorial Fellow, Melbourne Business School and Financial Services Consultant, Blake Dawson Waldron, Globalisation and the Australian Financial System, http://www.blakedawsonwaldron.com/areas/fsr/papers/globilisation.htm p. 3 of 5, (30 December 2002).

[32]      William Ferguson, ‘A Banker’s Perspective on the Future of the Financial System’, Reserve Bank of Australia, 1996, p. 195.

[33]      Submission 118, p. 15.

[34]      Submission 118, p. 2. See also National, Media Release, 4 April 2002, National to change its regional and rural network—4 April 2002, http://www.national.com.au/About_Us/0,,7812,00.html  (30 December 2002).

[35]      Submission 110, p. 8.

[36]      Submission 117, p. 4.

[37]      Robert Joss, ‘Developments in the Business of Banking’, Reserve Bank of Australia, 1996, pp. 190–191.

[38]      Robert Joss, ‘Developments in the Business of Banking’, Reserve Bank of Australia, 1996, pp. 190–191.

[39]      Submission 117, p. 2.

[40]      Submission 117, p. 13.

[41]      Submission 117, p. 6.

[42]      Submission 117, p. 2.

[43]      Year Book Australia 2002, population distribution, http://libas1.parl.net/abs/abs@nsf/Lookup/FE3FA39A5BF5AA5AC256B350010B  (3 January 2003).

[44]      According to an ABARE study ‘the number of people who migrated from inland and remote regions during 1991–96 exceeded those who migrated to these regions. In remote regions, net migration loss in the five years to 1996 represented 8 per cent of the population in these regions in 1991’. Jayne Garnaut, Peter Connell, Ray Lindsay and Veronica Rodriguez Country Australia; Influences on Employment and Population Growth, ABARE Research Report 01.1, 2001, p. 6.

[45]      Year Book Australia 2002, population distribution, http://libas1.parl.net/abs/abs@nsf/Lookup/FE3FA39A5BF5AA5AC256B350010B (3 January 2003). For example the populations of Jabiru and Tennant Creek declined between 1996 and 2001 by 4.4 % and Tennant 3.7 % per year respectively due to the closure of mines in the area. The significant losses in population of Coolgardie (down 1,400 people at an average rate of -5.3 % per year), Leonora (down 790 people or -6.3 % per year) and Dundas (down 410 people or -5.5 % per year) are also attributed to changes in employment conditions in the mining industry. ABS, Regional Population Growth, 1991 to 2001. Catalogue No. 3218.0, Canberra, July 2002, p. 33.

[46]      See for example, Paul Collits, ‘Small Town Decline and Survival: Trends, Success Factors and Policy Issues’, First National Conference on the Future of Australia’s Country Towns, The Regional Institute Ltd, http://www.regional.org.au/au/countrytowns/global/collits.htm (13 January 2003).

[47]      The Interim Report of the Steering Committee on the Summit on Regional Australia, Economic and Business Development in Regional Australia, April 2000, p. 3 of 6, http://www,dotrs.gov.au/regional/summit/outcomes/committee/report/development.htm  (29 October 2002).

[48]      Australian Bureau of Statistics, Regional Population Growth, Australia and New Zealand, Catalogue no. 3218.0, Canberra, 2002 http://www.abs.gov.au/ausstats/abs@.nsf’Lookup/NT0000B60E  (30 October 2002).

[49]      Bernard Salt, ‘Emerging Australian demographic trends’, On Line Opinion, 15 May 2001, http://www.onlineopinion.com.au/2001/May01/Salt.htm  (13 January 2003).

[50]      Australian Bureau of Statistics, Australian Social trends 2000, Population—Population Distribution: Regional populations: growth and decline, p. 4 of 8.

[51]      Australian Bureau of Statistics, Australian Social trends 2000, Population—Population Distribution: Regional populations: growth and decline. Year Book Australia 2002, population distribution, http://libas1.parl.net/abs/abs@nsf/Lookup/FE3FA39A5BF5AA5AC256B350010B  (3 January 2003).

[52]      The Productivity Commission observed this ‘sponge city’ phenomenon in its 1999 report, Productivity Commission, Impact of Competition Policy Reforms on Rural and Regional Australia,  Inquiry Report, Report No. 8, 8 September 1999, p. xxv.  Bernard Salt cited regional centres such as Dubbo and Wagga Wagga in NSW, Horsham in Victoria and Narrogin in Western Australia.

[53]      Bernard Salt, ‘People erosion hits small-town wheat lands’, the Australian, 25 February 2000. He also noted that ‘perhaps more importantly, the number of people added to Wagga over this period is spread across all age groups in a way that aligns with the average for Australia as a whole’. Similarly, he called Dubbo a de facto capital city whose population continues to grow while outlying towns such as Warren experience a drop in population. Bernard Salt, ‘Emerging Australian demographic trends’, On Line Opinion, 15 May 2001, http://www.onlineopinion.com.au/2001/May01/Salt.htm

[54]      Bernard Salt, ‘People erosion hits small-town wheat lands’, the Australian, 25 February 2000. He provided the following statistics—the Shire of Windouran near Hay in the Riverina lost 36 per cent of its population; the Shire of Buloke in the Victorian Wimmera lost 34 per cent; the Shire of Isisford in south-west Queensland lost 35 per cent; and the District Council of Peterborough in South Australia lost 31 per cent; all between 1976 and 1998.

[55]      ibid.

[56]      Submission 117, p. 4. In research for the Hawker Inquiry (1999) into regional banking services, the ABA commissioned work from KPMG that showed major demographic changes occurring in regional Australia, whereby small towns were getting smaller and larger regional towns and cities were getting larger. The research also showed a demographic shift to coastal areas.

[57]      Dr Gordon Forth, Director, Centre for Regional Development, Deakin University, Warrnambool Victoria, Following the Yellow Brick Road and the Future of Australia’s Declining Country Towns, p. 5 of 10,  http://www.regional.org.au/au/countrytowns/ideas/forth.htm  (11 February 2003).

[58]      Background Paper for the Parliamentary Inquiry into the Level of Banking and Financial Services in Rural and Remote Australia, October 2002, p. 29, Appendix B to Submission 117.

[59]      Submission 121, p. 5. See also, Australian Bureau of Statistics 2002 Year Book Australia, p. 84.

[60]      Australian Bureau of Agricultural and Resource Economics (ABARE), Australian Farm Surveys, Report 2001, Canberra, p. 37.

[61]      Submission 93, p. 2.

[62]      Submission 9, p. 2.

[63]      Submission 91, p. 2 and Councillor David Lykke, Committee Hansard, 13 March 2003, p. 419. See also evidence by Ms Kerry Yu, Municipal Association of Victoria, Committee Hansard, 26 February 2003, p. 284 who concluded, ‘It is not just out in Hindmarsh, in the backblocks where the population is declining and ageing that the banks are pulling out’.

[64]      Submission 116, p. 1.

[65]      Submission 116, p. 2.

[66]      Transcript, ‘Business Sunday’, 27 October 2002.

Chapter 3 - Impact of Bank branch closures on the Community

[1]        See for example, CPS Credit Union (South Australia) Ltd, Submission 59, p. 1; Shire of Victoria Plains, Submission 49, p. 3.

[2]        Leon A. Davis, Chairman, Westpac Banking Corporation, Deputy Chairman, Rio Tinto, ‘The Social Responsibilities of Corporations’, Address to the Menzies Research Centre, Melbourne, 18 May 2002.

[3]        David Bell, Committee Hansard, 14 November 2002, p. 60.

[4]        Committee Hansard, 14 November 2002, p. 61.

[5]        Submission 82, p. 1.

[6]        Submission 72, p. 1.

[7]        Submission 72, p. 1. It also stated that ‘Discussion regularly ensues at Council level with respect to the enticement of alternative banking services to Millmerran and has not discounted the option of forming a community bank, should existing services be discontinued’.

[8]        Submission 49, p. 3.

[9]        Submission 49, p. 2.

[10]      Also refer to the Human Rights and Equal Opportunity Commission, Bush Talks, Sydney, 1999, p. 1. After visiting numerous communities in country Australia, it noted that in almost every aspect of its work ‘people in rural and remote Australia generally come off second best. Distance, isolation, lower incomes and minority status all exacerbate the experience of discrimination, harassment, and lack of services and participation.’

[11]      Submission 87, p. 2.

[12]      Committee Hansard, 26 February 2003, p. 274.

[13]      See for example comments by the Murgon Shire Council, Submission 29, p. 1; the Victorian Farmers Federation, Submission 104, pp. 5–6.

[14]      See for example, the Macedon Ranges Shire Council, Submission 54, p. 1. See also, Mr Kevin Allery, Committee Hansard, 22 May 2003, p. 476.

[15]      For example the Australian Catholic Social Welfare Commission noted that rural and remote Australians have further distances to travel, greater amounts of time are required and higher fuel costs are involved. The Australian Catholic Social Welfare Commission, ‘A Litany of Disadvantage’, October 2000, http://www.centacare.com.au/publications/Discussion_Papers/Rural_Comunities.htm  p. 4 of 17, (20 October 2002). See also Submission 6, p. 2; Submission 64, p. 1.

[16]      Submission 41, p. 1. See also the Macedon Ranges Shire Council, Submission 54, p. 1 and the Crookwell Shire Council, Submission 57, p. 2.

[17]      Submission 84, pp. 5–6.

[18]      Submission 84, p. 12.

[19]      Submission 43, p. 2.

[20]      Submission 30, p. 2.

[21]      Submission 41, p. 1. See also the Macedon Ranges Shire Council, Submission 54, p. 1.

[22]      Submission 15, p. 2.

[23]      Submission 76, p. 2.

[24]      Chris Connolly and Khaldoun Hajaj, Financial Services and Social Exclusion, Financial Services Consumer Policy Centre, University of New South Wales, March 2001, p. 6.

[25]      ibid, p. 9.

[26]      ibid, p. 10.

[27]      Marianne Gizycki and Philip Lowe, The Australian Financial System in the 1990s, Reserve Bank of Australia, July 2000, pp. 1 and 6. They noted that ‘The increase in households’ holdings of market-linked investments, and the declining share of wealth held in deposits, has prompted banks to focus their growth strategies on funds management. In turn, this is leading to a further blurring of the distinction between different types of financial institutions, and pressure for consolidation focussed around the major banking groups. The increase in financial assets has also led to the development of markets in a wider range of debt securities, a proliferation of investment products, and a more important role for institutional investors’. They went further to state ‘Little more than a decade ago, the household sector’s major financial assets were direct claims on institutions, either in the form of bank deposits, or defined benefit pension schemes. Households held considerable institutional risk, but little market risk’.

[28]      Submission 9, p. 1.

[29]      Submission 23, p. 1.

[30]      Submission 93, p. 2.

[31]      Submission 104, p. 5.

[32]      KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 10.

[33]      KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 10.

[34]      Committee Hansard, 26 February 2003, p. 287.

[35]      Committee Hansard, 26 February 2003, p. 288.

[36]      Submission 85, p. [2].

[37]      Submission 30, p. 2.

[38]      Submission 27, pp. 1–2.

[39]      Geraldton, Western Australia, August 1998 in Human Rights and Equal Opportunity Commission, Bush Talks, 1999, p. 16.

[40]      Submission 30, p. 1.

[41]      The Country Women’s Association of NSW stated that one of the consequences of the withdrawal of banks from country towns has been the slow death of the community. It observed that because adequate banking services, such as seeking a loan, investing money, renegotiation of a loan, can be done only in regional centres, it is to these localities that those with transport go. Once there for their banking, they also do their shopping, both food and often petrol. Submission 86, pp. 4–5. The Municipal Association of Victoria submitted that ‘Reduction of banking facilities in small regional centres has an adverse effect on local business and viability and ultimately on employment on those localities. It produces a destructive downward spiral which is rarely regenerated even though long term growth may be envisaged for the area’. The Municipal Association of Victoria, Submission 114, p. 4. The Australian Catholic Social Welfare Commission supported the contention that with the closure of town banks a range of other basic services such as supermarkets, butchers and chemists follow suit, suggesting a spiral of decline. The Australian Catholic Social Welfare Commission, A Litany of Disadvantage, October 2000, http://www.centacare.com.au/publications/Discussion_Papers/Rural_Comunities.htm  p. 5 of 17, (20 October 2002). See also Murgon Shire Council, Submission 29, p. 2 and the Post Office Agents Association Ltd, Submission 77, p. 3.

[42]      Submission 16, p. 2 and Submission 25, pp. 1–2. See also District Council of Karoonda East Murray, Submission 6, p. 1 and Douglas Shire Council, Submission 45, p. 1.

[43]      Submission 77, p. 3.

[44]      The Guyra Shire Council, Submission 50, p. 3.

[45]      ibid. See also the Lockhart Shire Council, Submission 25, p. 2 and Submission 81, p. 1.

[46]      Committee Hansard, 22 May 2003, p. 482.

[47]      Chris Sidoti, ‘The human rights of older Australians in the bush’, Speech, Rural Ageing Seminar, Bungaree Station, 1 November 1999, p. 4 of 7 http://pandora.nla.gov.au/pan/13170/200010711/www.hreoc.gov.au/speeches/human_rights/hr_older_aus_bush.html  (29 October 2002). Mr Sidoti was Australia’s Human Rights Commissioner from 1995–2000.

[48]      Submission 81, p. 1.

[49]      Submission 84, p. 12.

[50]      KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 31.

[51]      KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 31.

[52]      The Interim Report of the Steering Committee on the Summit on Regional Australia, ‘Economic and Business Development in Regional Communities’, April 2000, p. 4 of 6, Economic and Business Development in Regional Communities http://www,dotrs.gov.au/regional/summit/outcomes/committee/report/development.htm  (29 October 2002).

[53]      Mayor Strohfeld, Committee Hansard, 22 May 2003, p. 457. He told the Committee ‘Most of the people who are in the offices in these smaller areas today have no decision-making power at all. It is all referred to the bigger regional city’. See also comments by Councillor Burgess, Committee Hansard, 13 March 2003, p. 433.

[54]      Committee Hansard, 13 March 2003, p. 442.

[55]      Submission 9, p. 2.

[56]      Submission 21, p. 2.

[57]      Submission 104, p. 5.

[58]      Walter Brooks, COSBOA, Committee Hansard, 26 February 2003, pp. 287, 289.

[59]      Committee Hansard, 26 February 2003, p. 289.

[60]      Committee Hansard, 13 March 2003, p. 434.

[61]      See for example the work of Chris Connolly and Khaldoun Hajaj, Small Business Banking: Issues Paper, Financial Services Consumer Policy Centre, University of New South Wales, April 2002, p. 27.

[62]      This sentiment was evident in many submissions from local councils. See Mayor Strohfeld, Committee Hansard, 22 May 2003, p. 452.

[63]      Submission 76, p. 2.

[64]      Submission 34, pp. 1–2.

[65]      See for example, the Rosalie Shire Council which observed ‘Money makes the world go round and when the primary money handling entity leaves a town there is an immediate and substantial loss of other businesses. What follows is a loss of government services and further facilities, to the extent that the town shrinks to a fraction of its size’ Submission 16A. There were many other submissions who maintained ‘that the loss of services and the associated employment have acted to further disintegrate rural communities by closing off important opportunities for social interaction and recreation’. The Australian Catholic Social Welfare Commission, ‘A Litany of Disadvantage’, October 2000, http://www.centacare.com.au/publications/Discussion_Papers/Rural_Comunities.htm  p. 4 of 17, (20 October 2002). See also the Manilla Shire Council, Submission 91.

[66]      Submission 104, p. 5.

Chapter 4 - Managing branch closures

[1]        Committee Hansard, 14 November 2002, p. 61.

[2]        See for example, David Morgan, ‘Securing Australia’s Economic Potential’, Higgins Memorial Lecture, address by Dr David Morgan, 10 February 1999, p. 12; David Morgan, CEDA Address, Committee for Economic Development of Australia, Sydney, 21 August 2000, pp. 6–7; statement by John McFarlane in ‘Agency closures a thorn in the side of bank reputations’, Financial Review, 13 April 2002 and Nicholas Way, ‘The price of bank bashing’, Business Review Weekly, 25 January 2001.

[3]        Transcript, ‘Business Sunday’, 27 October 2002.

[4]        Dr David Morgan, Chief Executive Officer, Westpac Banking Corporation, Committee for Economic Development of Australia, Sydney, 21 August 2000, pp. 7–8.

[5]        See for example comments by Mr Shaun McBride, Local Government Association of New South Wales, Committee Hansard, 25 February 2003, p. 152.

[6]        Graham Jennings, Committee Hansard, 25 February 2003, p. 105. It would seem that this undertaking was not necessarily to retain the level of service but as explained by Westpac some branches were converted to in-stores. It maintained that throughout the period from 1998 Westpac had actually increased the number of locations in regional Australia. Committee Hansard, 25 February 2003, p. 110.

[7]        Submission 121, p. 3.

[8]        Committee Hansard, 25 February 2003, pp. 124, 129.

[9]        Many submissions to this inquiry refer to the community’s apprehensions about branch closures. See for example Mr Shaun McBride, Local Government Association of New South Wales, Committee Hansard, 25 February 2003, p. 153.

[10]      Submission 21, p. 2.

[11]      Submission 27, p. 1. See also Submission 23, p. 1.

[12]      These figures are taken from ‘Banks: Channels offering a Branch Level of Service’; Building Societies: Channels offering a Branch Level of Service’; and Credit Unions: Channels offering a Branch Level of Service’, APRA Points of Presence Database, 2001, 2002 and 2003. Unfortunately the statistics do not provide a breakdown by region for the major banks. There is a breakdown for building societies and credit unions according to location presented in Table 8.1.

[13]      Australian Bankers’ Association, Media Release, ‘New Code of Banking Practice’, 12 August 2002 and Code of Banking Practice, Launch publication, August 2002.

[14]      Supplementary Submission 117, p. 12.

[15]      Australian Bankers’ Association, The Transaction Services and Branch Closure Protocol, http://www.bankers.asn.au/ABA/adminpages/AdminViewAnArticle.asp?ArticleID=139  (16 January 2003).

[16]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services: Money too far away, Recommendation 20, March 1999, p. 103.

[17]      Richard Viney, Review of the Code of Banking Practice, Issues paper, RTV Consulting Pty Ltd, Melbourne, February 2001, p. 35. The Department of Finance, Canada, proposed that federal deposit-taking institutions provide four months’ notice of branch closures to customers, but where there were no other financial institutions within a 10-kilometre radius they would be required to provide six months’ notice of closures. Reforming Canada’s Financial Services Sector: A Framework for the Future, June 1999, p. 51.

[18]      Submission 69, p. 2.

[19]      See for example, Mr Clinton Weber, Committee Hansard, 22 May 2003, p. 467, who pointed out that people need time to make different arrangements. Also, Mr Richard Brittain and Mrs Zerbst, Committee Hansard, 22 May 2003, pp. 484–5 who suggested 12 months notice in a one bank town. Mr Brittain stated that it takes between nine and twelve months to get a community bank up and running.

[20]      Committee Hansard, 14 November 2002, p. 66.

[21]      Australian Bankers’ Association to Committee, 20 December 2002.

[22]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services: Money too far away, Recommendation 20, March 1999, p. 103.

[23]      Submission 119, p. 13.

[24]      Submission 18, p. 3.

[25]      Michael Potter, Committee Hansard, 14 November 2002, p. 49.

[26]      Committee Hansard, 14 November 2002, p. 50.

[27]      Committee Hansard, 26 February 2003, p. 263.

[28]      Committee Hansard, 14 November 2002, p. 65.

[29]      Committee Hansard, 14 November 2002, p. 74.

[30]      Committee Hansard, 27 February 2003, p. 305.

[31]      Submission 110, p. 15.

[32]      Department of Finance, Canada, Reforming Canada’s Financial Services Sector: A framework for the Future, June 1999, p. 51. The legislation provides that after notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner [head of the Financial Consumer Agency of Canada] may, in prescribed situations, require the bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities.’ Consumer Provisions under FCAC Supervision, Banks/Foreign Banks (Schedule I & II) Authorized Foreign Bank Branches, June 2002.

[33]      Australian Bankers’ Association, The Transaction Services and Branch Closure Protocol, http://www.bankers.asn.au/ABA/adminpages?AdminViewAnArticle.asp?ArticleID=139  (16 January 2003).

[34]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services: Money too far away, Recommendation 20, March 1999, p. 103.

[35]      The recommendations are found on pp. 207–8 and 228.

[36]      Australian Bankers’ Association, The Transaction Services and Branch Closure Protocol, http://www.bankers.asn.au/ABA/adminpages/AdminViewAnArticle.asp?ArticleID=139  (16 January 2003).

[37]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services: Money too far away, Recommendation 20, March 1999, p. 103.

[38]      Committee Hansard, 14 November 2002, p. 49.

[39]      Committee Hansard, 14 November 2002, p. 74.

[40]      Committee Hansard, 14 November 2002, p. 49.

[41]      Submission 64, p. 1.

[42]      Committee Hansard, 13 March 2003, p. 412.

[43]      Mark Pearson, Committee Hansard, 27 February 2003, p. 325.

[44]      Brian Cassidy, Committee Hansard, 27 February 2003, p. 326.

[45]      House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services: Money too far away, Recommendation 20, March 1999, p. 103.

[46]      Commonwealth Government Response to the Recommendations of the House of Representatives Standing Committee on Economics, Finance and Public Administration (the Hawker Committee) Inquiry into Regional Banking Services, 28 June 2000, pp. 8–9.

[47]      Richard Viney, Review of the Code of Banking Practice, Issues paper, RTV Consulting Pty Ltd, Melbourne, February 2001, p. 36. Mr Viney went on to state, however, that it may be undesirable to attempt to give effect to the Hawker recommendation in the Code of Banking Practice ‘because any workable guidelines about waivers may well need to contain significant flexibility and thus not lend themselves to incorporation into a Code’.

[48]      Committee Hansard, 14 November 2002, pp. 66–7.

[49]      He stated further ‘the single biggest reason for people saying that they cannot shift from one bank to another is that the cost of stamp duty is going to be so large. There are account fees for new loans, but not for transactional accounts’; and ‘If my choice was to move across, stamp duty would be the biggest hindrance. I guess that is a matter for governments rather than for banks’, Committee Hansard, 27 February 2003, pp. 318–19. As well the RBA has raised a suggestion that State imposed Stamp Duties may result in an additional cost for switching providers if loans have to be re-financed. See KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 31.

[50]      Committee Hansard, 27 February 2003, p. 338.

[51]      Committee Hansard, 27 February 2003, p. 338.

[52]      Supplementary Submission, 117, p. 15.

[53]      Committee Hansard, 13 March 2003, p. 435.

[54]      Committee Hansard, 14 November 2002, p. 68.

[55]      Committee Hansard, 27 February 2003, pp. 318 and 319. and see footnote 47 above.

[56]      Gregory Gillett, Committee Hansard, 27 February 2003, p. 338.

[57]      KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 31.

[58]      See for example, Submission 64, p. 1.

[59]      Submission 91, p. 1.

[60]      Commonwealth Government Response to the Recommendations of the House of Representatives Standing Committee on Economics, Finance and Public Administration (the Hawker Committee) Inquiry into Regional Banking Services, 28 June 2000, p. 8.

[61]      Richard Viney, Review of the Code of Banking Practice, Issues paper, RTV Consulting Ltd, Melbourne, February 2001, p. 36. He noted that the obvious record is the account holder’s signature.

[62]      Committee Hansard, 13 March 2003, p. 438.

[63]      Submission 64, p. 1.

[64]      Submission 16, p. 1.

[65]      Submission 34 , p. [3].

[66]      Submission 69, p. 2.

[67]      Supplementary Submission 117, p. 18.

[68]      Samuel Smith, President Gladstone Community Development and Tourism Association and member of the Rocky River Community Bank Steering Committee, Committee Hansard, 13 March 2003, p. 428.

[69]      Committee Hansard, 13 March 2003, p. 432.

Chapter 5 - Competition in the banking industry - winners and losers

[1]        Commonwealth of Australia, Financial System Inquiry Final Report, March 1997, p. 177 (The Wallis Report).

[2]        Stan Wallis, ‘The Future of the Australian Financial System’, The Sydney Papers, Autumn, 1997, p. 113 and ‘Modernising our Markets; the Financial System Inquiry’, CEDA Bulletin, 1 July 1997.

[3]        Commonwealth of Australia, Financial System Inquiry Final Report, March 1997, p. 142.

[4]        Graeme Samuel, President, National Competition Council, conceded clearly that ‘while promoting competition will generally improve economic efficiency and community welfare, this may not be the case in specific instances where the benefits of reform would be outweighed by associated costs, or where market failure might warrant regulation.’ Graeme Samuel, President, National Competition Council, ‘A Changing Australia: The Business and Social Imperatives’, presentation to the Institute of Chartered Accountants in Australia, Business Forum 2001, Melbourne, 21 May 2001.

[5]        KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 49. In its assessment of the Colonial Ltd and Commonwealth Bank of Australia merger, the ACCC reported in May 2000 that agricultural lending requires a physical presence of some sort. In keeping with this observation, banks and other financial institutions generally have teams of specialist lenders travelling the countryside assessing and managing loan accounts. See Submission 105, p. 14.

[6]        Submission 118, p. 8.

[7]        Submission 118, p. 8.

[8]        Submission 118, p. 9.

[9]        Submission 118, p. 1.

[10]      Submission 124, p. 10.

[11]      Submission 110, p. 4.

[12]      Committee Hansard, 14 November 2002, p. 75.

[13]      Committee Hansard, 14 November 2002, p. 56.

[14]      Committee Hansard, 14 November 2002, pp. 56–7.

[15]      Committee Hansard, 14 November 2002, p. 57.

[16]      Committee Hansard, 12 November 2002, p. 4.

[17]      Bruce Brown, ‘Future rural finance trends’, paper included in vol. 2 of the proceedings of the National Outlook Conference, Outlook 2001: capturing growth opportunities, Canberra, 27 February–1 March 2001. See also Evan Jones, ‘Rural Finance in Australia: a Troubled History’, Rural Society, vol. 12, no. 2, p. 171.

[18]      Productivity Commission, Impact of Competition Policy Reforms on Rural and Regional Australia, Inquiry Report, no. 8, 8 September 1999, p. xxxvii.

[19]    The ACCC found in the case of the Commonwealth/Colonial merger that there was little evidence that suppliers of transactions accounts who had minimal branch, agency or ATM network infrastructure could provide a competitive constraint. Pure on-line banking had tended to target technologically sophisticated consumers but for most consumers, on-line banking offered few substitution possibilities.

In the deposits market, the Commission took the view that ‘the apparent lack of demand side substitutability between at call transactions accounts and longer term savings type products led to the conclusion that there was a separate market for deposits’. In the Commission’s view, ‘barriers to entry in this market were substantial. New entrants would need to develop a branch network and establish a trusted and identifiable brand name. Independent reports indicated that Internet-only banks had made little headway and that access to “bricks” rather than just “clicks” was important’. Ross Jones, Commissioner, Australian Competition and Consumer Commission, ‘The Dollars and Sense of Bank Consolidation, Bank Mergers and the Trade Practices Act ...’, Melbourne Business School Current Issues Conference, Melbourne, Friday, 12 April 2002, p. 12.

[20]      ibid. See also Forum, ACCC Journal No. 40. pp. 19, 20. and Tom Valentine and Guy Ford, ‘Bank Mergers in the Australian Financial System: Should the Pillars be Pulled Down?, Economic Papers, 1 December 2001, vol. 20, no. 4, pp. 45–6.

[21]      Chris Connolly and Khaldoun Hajaj, Small Business Banking: Issues Paper, Financial Services Consumer Policy, University of New South Wales, April 2002, p. 7.

[22]      Committee Hansard, 22 May 2003, p. 485.

[23]      Garry Goddard and Greg Walker, Bank Mergers in Australia: Competition Assessment of the Commonwealth Bank of Australia’s Acquisition of Colonial Limited,  Working Paper no. 2/01, April 2001, p. 26.

[24]      Submission 87, p. 1.

[25]      Committee Hansard, 26 February 2003, p. 237.

[26]      Committee Hansard, 26 February 2003, p. 239.

Chapter 6 - Access to banking services in Australia

[1]        Commonwealth of Australia, Financial System Inquiry Final Report, March 1997, pp. 468–9. (The Wallis Report)

[2]        Submission 117, p. 1.

[3]        Submission 117, p. 6. See also Committee Hansard, 14 November 2002, p. 61.

[4]        The numbers of EFTPOS outlets and ATMs in Australia have increased since Mr Bell gave evidence. See Table 11.1 (p. 171) which records 433,640 EFTPOS terminals and 21,603 ATMs as at June 2003.

[5]        Committee Hansard, 14 November 2002, p. 75.

[6]        Submission 117, p. 3.

[7]        Submission 117, Background Paper, p. 5.

[8]        Submission 117, Background Paper, pp. 3 and 5. The list on p. 3 of the paper did not include Australia Post Office Manual Bank Agency Locations.

[9]        Report from the House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services, Money too far away, March 1999, pp. 15‑16.

[10]      Commonwealth Government Response to the Recommendations of the House of Representatives Standing Committee on Economics, Finance and Public Administration Inquiry into Regional Banking Services, p. 6.

[11]      ibid., p. 7.

[12]      ibid.

[13]      Dr Darryl Roberts and Earl Burgess, APRA, Committee Hansard, 25 February 2003, pp. 183–185.

[14]      APRA, Points of Presence, Summary of branches, 30 June 2001.

[15]      Richard Brittain, Committee Hansard, 22 May 2003, p. 477.

[16]      Clinton Weber, CEO, Rosalie Shire Council, Committee Hansard, 22 May 2003, p. 465.

[17]      Committee Hansard, 25 February 2003, p. 185.

[18]      Submission 101, p. 8.

[19]      Brandon Khoo, Committee Hansard, 25 February 2003, p. 181.

[20]      Dr Darryl Roberts, APRA, Committee Hansard, 25 February 2003,  p. 183.

[21]      Attachment to Submission 117, p. 6.

[22]      Appendix B to Submission 117, p. 7.

[23]      ABA, Media Release, ‘ABA Maps Community’s Extensive Access to Financial Services’, Sydney, 27 March 2000, http://www.bankers.asn.au/ABA/adminpages/Admin/New.AnArticle.asp?ArticleID=331   (19 July 2002).

[24]      Committee Hansard, 25 February 2003, pp. 123–4.

[25]      ATMs similarly fail to meet the ‘branch’ criteria, but the ABA report acknowledges that they are less acceptable points of presence, and excludes them from some of its analysis. The ABA suggests that the presence or absence of ATMs in the analysis has a negligible effect, presumably because there are few locations where there are ATMs, but no other points of presence.

Chapter 7 - Shared banking facilities and mobile Banks

[1]        Report from the House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services: Money too far away, March 1999, p. 3.

[2]        See David Bell, Committee Hansard, 14 November 2002, p. 61.

[3]        Submission 104, p. 6.

[4]        Submission 104, pp. 6–7.

[5]        Submission 104, p. 7.

[6]        Committee Hansard, 26 February 2003, p. 278.

[7]        Submission 26, p. 1; Submission 41, p. 2; Submission 56, p. 1. See also the District Council of Karoonda East Murray located in the Murray Mallee in SA which supports the development of shared facilities. Submission 6, p. 1. The Yallaroi Shire Council accepted that it may not be possible for each bank to have a branch in the smaller centres. It suggested, however, that services would be enhanced if either a shared banking facility could be provided or at least one bank had a branch in centres of population with 800 residents. Submission 23, p. 1.

[8]        Committee Hansard, 14 November 2002, p. 62.

[9]        Submission 121, pp. 7–8.

[10]      Committee Hansard, 25 February 2003, p. 178.

[11]      Submission 14, p. 2.

[12]      See ANZ, Submission 121, p. 8; CUSCAL, Submission 109, p.3.

[13]      Submission 124, p. 4.

[14]      Committee Hansard, 14 November 2002, p. 62.

[15]      Submission 39, p. 2.

[16]      Brian Goodfellow, Committee Hansard, 12 March 2003, pp. 372–3.

[17]      Submission 124, p. 4.

[18]      Committee Hansard, 14 November 2002, p. 62.

[19]      Submission 124, pp. 4–5.

[20]      Submission 39, p. 3.

[21]      Correspondence Gina Cass-Gottlieb to Mr David Bell, Australian Bankers’ Association, 10 October 2002, Attachment to Submission 117.

[22]      ibid.

[23]      ibid.

[24]      ibid.

[25]      ibid.

[26]      ibid.

[27]      Additional Information from the Australian Competition and Consumer Commission, 6 May 2003.

[28]      Additional Information from the Australian Competition and Consumer Commission, 6 May 2003.

[29]      Committee Hansard, 27 February 2003, p. 330.

[30]      Correspondence Gina Cass-Gottlieb to Mr David Bell, Australian Bankers Association, Attachment to Submission 117.

[31]      Submission 124, p. 4.

[32]      Committee Hansard, 26 February 2003,  pp. 209–10.

[33]      Committee Hansard, 26 February 2003, p. 209.

[34]      Committee Hansard, 26 February 2003, p. 209.

[35]      Committee Hansard, 14 November 2002, p. 70.

[36]      Submission 14, p. 1.

[37]      Submission 28, p. 1.

[38]      Submission 51, p. 1.

[39]      Committee Hansard, 26 February 2003, p. 242.

[40]      Supplementary Submission 117, p. 37.

[41]      See Hugh Harley, Committee Hansard, 25 February 2003, p. 130.

[42]      Committee Hansard, 14 November 2002, p. 56.

[43]      Committee Hansard, 27 February 2003, p. 316.

[44]      Committee Hansard, 27 February 2003, p. 301. See also Committee Hansard, 27 February 2003, p. 314.

[45]      Committee Hansard, 25 February 2003, pp. 133–4.

[46]      Committee Hansard, 25 February 2003, p. 121.

Chapter 8- Credit Unions, Building Societies and Community Banks

[1]        Mr Joe Hockey, Minister for Financial Services and Regulations, House Hansard, 29 March 1999, p. 4623.

[2]        Jeffrey Carmichael, ‘APRA—the Way Forward’, speech, 22 November 2002.

[3]        APRA Insight, 3^rd Quarter 2001, p. 16.

[4]        APRA Insight, 3^rd Quarter 2001, p. 16.

[5]        APRA, Points of Presence, Summary of Branches, 30 June 2001 and 30 June 2002.

[6]        APRA, Points of Presence, Summary of changes from 2001 to 2002, ARIA Breakdowns and Movements, 2001 , 2002 and 2003 http://www.apra.gov.au/statistics/pop/ARIABreakdownsandMovements.xls, 2003. APRA in its Explanatory Notes states that ‘some postcodes do not have ARIA indexes, and for these the ARIA category is shown as a blank. This applies to postcodes for islands (other than Tasmania). Nonetheless, the number of Credit Union outlets offering other face-to-face services is given as 286 which appears extremely high for the category ‘blank’. APRA informed the Committee that of these 286 new channels, 177 belong to the TAB Credit Union. It should be noted that CUSCAL disputes APRA’s statistics. It informed the Committee the level of ‘branch level service’ outlets, according to APRA’s definition, is more accurately reported as 1,008. CUSCAL’s data shows that there has not been any significant variance in branch level services offered by credit unions in any particular area. Louise Petschler, CUSCAL, correspondence to the Committee, 22 December 2003.

[7]        International Credit Union Operating Principles, Appendix A, Submission 109.

[8]        Submission 109, pp. 4–5.

[9]        Submission 109, pp. 4–5.

[10]      Submission 109, p. 4.

[11]      Submission 109, p. 8.

[12]      Submission 109, p. 8.

[13]      Submission 109, p. 9.

[14]      Submission 39, p. 1.

[15]      Submission 109, p. 4.

[16]      Submission 109, p. 13.

[17]      http://www.aapbs.com.au/about.htm   (8 January 2003).

[18]      http://www.aapbs.com.au/about.htm  (8 January 2003).

[19]      Press Release, ‘Industry Criticism of KMPG “2001”: Financial Institutions Performance Survey’, 29 June 2001, http://www.aapbs.com.au/Press%20Release%20-%20KPMG%20 Survey%2029%20Ju...(8 January 2003).

[20]      Dr Gary Lewis, ‘Laughing All the Way to the Credit Union’: The CreditCare Experience in ‘No Bank’ Towns 1995–2000, ACCORD, University of Technology, Sydney, November 2001, pp. 34, 76.

[21]      See for example, Timothy White, CPS Credit Union (South Australia) Ltd, Committee Hansard, 12 March 2003, p. 375.

[22]      Committee Hansard, 25 February 2003, p. 173.

[23]      Submission 109, p. 15. See also Timothy White, CPS Credit Union (South Australia) Ltd, Committee Hansard, 12 March 2003, p. 377.

[24]      Submission 109, p, 16.

[25]      Dr Gary Lewis, ‘Laughing All the Way to the Credit Union’: The CreditCare Experience in ‘No Bank’ Towns 1995–2000, ACCORD, University of Technology, Sydney, November 2001, p. 35.

[26]      Dr Gary Lewis, ‘Laughing All the Way to the Credit Union’: The CreditCare Experience in ‘No Bank’ Towns 1995–2000, ACCORD, University of Technology, Sydney, November 2001, p. 39.

[27]      See Chapter 5, paragraphs, 5.3–5.

[28]      Submission 109, p. 16.

[29]      Submission 109, p. 16.

[30]      Committee Hansard, 22 May 2003, p. 482.

[31]      Committee Hansard, 22 May 2003, p. 480.

[32]      See Chapter 16, paragraphs 16.32–16.33.

[33]      Chapter 4, paragraphs 4.66–4.71.

[34]      See Chapter 4, paragraphs 4.52–4.71.

[35]      Committee Hansard, 25 February 2003, p. 166. Mr Lovney told the Committee ‘customers do need to do a fresh 100-point check every time they move institutions. They need to change their payroll arrangements. If they have direct debits for their invoices and bills, they need to move those as well. They also have to take into consideration credit cards and stamp duty.’ See p. 170.

[36]      Committee Hansard, 25 February 2003, p. 170.

[37]      Committee Hansard, 25 February 2003, p. 166.

[38]      Competition Commission, The supply of banking services by clearing banks to small and medium-sized enterprises, A report on the supply of banking services by clearing banks to small and medium-sized enterprises within the UK, presented to Parliament by the Secretary of State for Trade and Industry and the Chancellor of the Exchequer by Command of Her Majesty, March 2002, p. 3.

[39]      ibid., p. 29.

[40]      ibid., pp. 145–6. The report made 13 recommendations in all on this matter.

[41]      British Bankers’ Association, The Banking Code, January 2001, para 7.2, p. 11.

[42]      See for example, Submission 59, pp. 3–4.

[43]      Submission 39, p. 2.

[44]      Submission 80, p. 2.

[45]      Submission 80, p. 2.

[46]      Submission 80, p. 2.

[47]      Brandon Khoo, APRA, Committee Hansard, 25 February 2003, pp. 180–1.

[48]      Committee Hansard, 25 February 2003, p. 189.

[49]      Committee Hansard, 25 February 2003, pp. 188–9.

[50]      Committee Hansard, 25 February 2003, p. 189.

[51]      Committee Hansard, 25 February 2003, p. 189.

[52]      Submission 109, p. 17. See also submission 4 to the Inquiry into Corporations Amendments Regulations 2003, (No. 1), Statutory Rules 2003 No. 31. CUSCAL stated in this submission that ‘It is simply a fact that regulatory compliance is a heavier burden for smaller entities because they are less likely than their larger competitors to be able to devote full time resources to the function.’

[53]      Submission 2, p. 1 to the Parliamentary Joint Committee on Corporations and Financial Service’s inquiry into the regulations and policy statements under the Financial Services Reform Act.

[54]      According to some in the industry, the lower Tier 2 level was an ‘unnecessary and counter productive standard for what are simple, straightforward and capital assured deposit products’. CUSCAL was not alone in arguing that these training requirements placed a significant compliance burden on ADIs. It was critical of PS146 for not being clear and straightforward; for failing to recognise the unique status of ‘basic deposit products’ and related payment products in the Act; and for categorising deposit products that are not basic deposit products in Tier 1 instead of Tier 2. Bendigo Bank Ltd echoed these same sentiments and outlined the adverse effects that PS146 would have on the provision of banking services in regional, rural and remote Australia. Refer to submissions from the Australian Association of Permanent Building Societies, Bendigo Bank Ltd and CUSCAL, nos. 2, 8 and 9 respectively to the Parliamentary Joint Committee on Corporations and Financial Service’s inquiry into the regulations and policy statements under the Financial Services Reform Act.

[55]      Parliamentary Joint Committee on Corporations and Financial Services, Report on the Regulations and ASIC Policy Statements Made Under the Financial Services Reform Act 2001, October 2002, p, 26. It recommended that: ASIC urgently review the training requirements in PS146 so they take into account the special features of basic deposit products and related non-cash payment facilities. Also, that ASIC consider amending PS146, as far as possible—and without compromising consumer protection—to: provide a framework for more cost-effective reviews of ADIs’ current in-house training requirements; to ensure training costs—whether in-house or external—are more proportionate to envisaged consumer protection gains; and to cater for the training challenges presented by agencies and small branches, particularly in regional and remote areas. The Report by the Labour members of the Committee offered some support for the recommendations that ASIC review the training requirements in PS146 and that it consider amending PS146 in the manner recommended in the majority report subject not to compromising consumer protection. p. 82.

[56]      ASIC, Information Release, Wednesday, 22 January 2003. The amendment reads—‘Training courses covering advice on basic deposit products and related non-cash payment products (BDPs) are no longer required to be assessed by the licensee as meeting Tier 2 standard’.

[57]      Adrian Lovney, Committee Hansard, 25 February 2003, p. 168.

[58]      Committee Hansard, 25 February 2003, p. 169.

[59]      These include measures such as the uniform consumer credit code, the FSR in principle, the Centrelink code of practice and the electronic funds transfer code of conduct.

[60]      Committee Hansard, 25 February 2003, p. 165.

[61]      Submission 122, p. 3.

[62]      Committee Hansard, 21 July 2003, p. 527.

[63]      Submission 128, p. 7.

[64]      Dr Gary Lewis, ‘Laughing All the Way to the Credit Union’: The CreditCare Experience in ‘No Bank’ Towns 1995–2000, ACCORD, University of Technology, Sydney, November 2001, p. 95.

[65]      Report from the House of Representatives Standing Committee on Economics, Finance and Public Administration, Regional Banking Services: Money too far away, March 1999, p. 41.

[66]      Submission 109, p. 19.

[67]      Committee Hansard, 25 February 2003, p. 165.

[68]      Committee Hansard, 25 February 2003, p. 165.

[69]      Correspondence received as Additional Information, Legal Practice Board to Committee, 16 September 2003.

[70]      Greg Walker, Finance Industry Restructuring: Implications for Regional Australia, Paper presented to CAFI Workshop, Brisbane, 12 November 1998, p. 10; Tom Murphy, Director, Western Research Institute Ltd, ‘The Rise of Regional Financial Institutions’, in conference report and proceedings, ‘Efficient Equity and Credit Financing for the Rural Sector’, August 2001, p. 59; Siobhan McDonnell and Neil Westbury, Giving Credit where it’s due: The delivery of banking and financial services to Indigenous Australians in rural and remote areas, Centre for Aboriginal Economic Policy Research, Discussion Paper, No. 218/2001, June 2001, p. 17.

[71]      Committee Hansard, 23 May 2003, p. 499.

[72]      Fraser Read-Smith, Committee Hansard, 23 May 2003, p. 491.

[73]      See Garry West, ‘Heritage Building Society hits “inequitable levy system’”, Australian Financial Review, 19 October 2000.

[74]      Submission 122, pp. 3–4.

[75]      See Garry West, ‘Heritage Building Society hits “inequitable levy system’”, Australian Financial Review, 19 October 2000.

[76]      Press Release, 18 July 2001, http://www.aapbs.com.au/Press%20Release%20-%20Levies%2018%20 July%2001.htm  (8 January 2003).

[77]      Darryl Roberts, Committee Hansard, 25 February 2003, p. 182. Mr Brandon Khoo, APRA, explained the operation of the levy system—‘The legislation provides for levies to be calculated on a set percentage of assets per sector, subject to a dollar minimum and maximum per institution. The rate for credit unions and other ADIs is currently 0.01 per cent, down from 0.013 per cent in 1999–2000, with a minimum of $500 per institution and a maximum of $1.125 million, which is up from $1 million in 1999–2000’. Committee Hansard, 25 February 2003, p. 181.

[78]      Committee Hansard, 25 February 2003,  p. 181.

[79]      See for example, the Shire of Kellerberrin which stated that ‘Community banks in Western Australia namely the Bendigo Bank have started to mushroom and those communities are now seeing the immense benefits delivered from a bank located within the community,’ Submission 52, p. 1. See also Submission 100, p. 2.

[80]      Submission 52, p. 1.

[81]      Submission 81, p. 2.

[82]      ibid.

[83]      Submission 107.

[84]      Bendigo Bank web site, News, September 2003, ‘Locals join National Community Bank Conference, http//www.communitybank.com.au/public/media_file/news.htm 

[85]      Bendigo Bank web site, News, September 2003, ‘Locals join National Community Bank Conference, http//www.communitybank.com.au/public/media_file/news.htm 

[86]      Submission 109, p. 14.

[87]      Submission 109, p. 14.

[88]      Submission 107.

[89]      KPMG Consulting, Small Business Banking in Australia, A Research Report, February 2002, p. 26.

[90]      Howard Littleton in Heritage Building Society, Information for Communities Considering Community Banking with Heritage Building Society.

[91]      Fraser Read-Smith, Committee Hansard, 23 May 2003, p. 490.

[92]      Submission 10, p. 1. See also ‘Start your own Bank’, Choice¸ June 2002, p. 18.

[93]      Committee Hansard, 27 February 2003, p. 334.

[94]      See comments by Wendy Zerbst, ‘Start your own Bank’, Choice¸ June 2002, p. 18. The community company has 164 members who each pledged between $200 and $5,000, making a total of $160,000. Their stated intention was not to make money but rather to get the service ‘up and running’. The members are not shareholders but members who will receive interest on their money. According to a spokesperson for the Nanango Progressive Society, ‘the rest of the profits will go to a trust fund to be distributed to community projects’.

[95]      Committee Hansard, 22 May 2003, p. 478.

[96]      Submission 25, p. 2.

[97]      Committee Hansard, 27 February 2003, p. 334.

[98]      Committee Hansard, 27 February 2003,  p. 335.

[99]      Committee Hansard, 27 February 2003, pp. 339–340.

[100]    Committee Hansard, 13 March 2003, p. 428.

[101]    Submission 132.

[102]    Submission 107.

[103]    Committee Hansard, 22 May 2003, p. 479.

[104]    Committee Hansard, 23 May 2003, p. 493.

[105]    Ivor Ries, ‘Small town bank’, Bulletin with NewsWeek, vol. 120 (6340), 3 September 2002, pp. 56–7.

[106]    Ivor Ries, ‘Small town bank’, Bulletin with NewsWeek, vol. 120 (6340), 3 September 2002, pp. 56–7.

[107]    Submission 43, p. [4].

[108]   Submission 75, p. 3.

[109]    Committee Hansard, 13 March 2003, pp. 428–9. Mr Smith explained that the increase from $250,000 to $450,000 was to do with the three different outlets and the costs of setting them up—the buildings, signage, carpets etc. Committee Hansard, 13 March 2003, pp. 445–6.

[110]    Committee Hansard, 22 May 2003, p. 472.

[111]    Heritage Building Society, Information for Communities Considering Community Banking with Heritage Building Society, p. 8.

[112]    Committee Hansard, 23 May 2003, p. 494.

[113]    Submission 107, p. 5.

[114]    Submission 25, p. 3.

[115]    Submission 36, p. 2. The Country Women’s Association of Western Australia also mentioned the possibility of community banks being ‘swallowed up by the more established banks where they demonstrate substantial competition...’ Submission 100, p. 2.

[116]    Based on notes taken during Committee’s site inspection of the Crows Nest community bank, 22 May 2003.

[117]    APRA, Points of Presence , Raw data, 2002.

[118]    Paul Syvret, ‘At your service’, the Bulletin with Newsweek, 19 November 2002, vol. 120, no. 6351, pp. 54–5.

[119]    Bank of Queensland, Media Release, 7 May 2003.

Chapter 9 - Agencies and Post Offices

[1]        Dr David Morgan, CEO, Westpac Banking Corporation, CEDA Address, Sydney 21 August 2000, p. 10.

[2]        See for example, Committee Hansard, 14 November 2002, p. 61.

[3]        Reserve Bank of Australia, C05 Points of Access to the Australian Payments System, updated 9 July 2003, http://www.rba.gov.au/Statistics/Bulletin/index.html#table_C   (11 August 2003).

[4]        APRA’s explanatory notes warn the reader that he or she ‘should bear in mind that the detail of movements from 2002 and 2003 may reflect changes in the accuracy of respondents in reporting according to a particular definition. In general, subcategory numbers can be expected to be less robust than category totals, because of the possibility of classification errors’.

[5]        APRA Points of Presence, Breakdown and Movements, 2001, 2002 and 2003. See also footnote 6, Chapter 8, p. 103.

[6]        See for example, Patricia Howard, ‘Withdrawal Symptoms’, Australian CPA, vol. 71, no. 6, July 2001.

[7]        Westpac, Submission 110, p. 7.

[8]        Description given in APRA, Points of Presence, 2001.

[9]        Submission 110, p. 7.

[10]      Submission 121, pp. 3, 5.

[11]      APRA, Points of Presence, Raw Data.

[12]      Submission 124, p. 7. See also APRA, Points of Presence, Raw Data.

[13]      Submission 124, pp. 8, 9.

[14]      Submission 112, p. 1.

[15]      Submission 131, p. 1.

[16]      APRA, Points of Presence.

[17]      Submission 131, p. 2.

[18]      APRA, Points of Presence.

[19]      APRA, Points of Presence.

[20]      APRA, Points of Presence.

[21]      Submission 29, p. 1.

[22]      It stated further that rural residents in the Manilla Shire Council’s area of responsibility who do not have access to a local bank manager (who would have knowledge of local prevailing circumstances) for professional advice and assistance experience mental anxiety. Submission 91, pp. 1–2.

[23]      Submission 49, p. 1.

[24]      Submission 50, p. 2 and Submission 92, p. 1.

[25]      Submission 43, p. [2].

[26]      Submission 43, p. [2].

[27]      Submission 73, p. 1.

[28]      Submission 75, p. 4.

[29]      Committee Hansard, 22 May 2003, p. 481.

[30]      Submission 43, p. [2].

[31]      Submission 87, p. 2.

[32]      Dr David Morgan, Committee for Economic Development of Australia, Address, Sydney, 21 August 2000, p. 10.

[33]      Submission 121, p. 5.

[34]      Submission 106, p.1.

[35]      Committee Hansard, 12 March 2003, p. 382.

[36]      Australia Post, Submission 106, p. 2. The figures produced at the public hearing differed a little from the submission. At the hearing the Committee was informed that giroPost now provides services for the customers of 10 banks, one building society, one mortgage originator and 60 credit unions—some 72 financial institutions in all. The evidence also indicated that the number of online retail outlets in the Australia Post network had grown to 2,972. Committee Hansard, 12 March 2003, p. 382.

[37]      Australia Post, Submission 106, p. 3. See also Committee Hansard, 12 March 2003, p. 382.

[38]      Committee Hansard, 12 March 2003, p. 391.

[39]      Marie McGrath-Kerr, Committee Hansard, 27 February 2003, p. 355.

[40]      Submission 106, p. 3.

[41]      KPMG, Small Business Banking in Australia, A Research Report, February 2002, p. 25.

[42]      Australia Post, Submission 106, p. 2.

[43]      Committee Hansard, 12 March 2003, p. 383.

[44]      Australia Post, Submission 106, p. 3. See also for more recent developments, Committee Hansard, 12 March 2003, p. 383.

[45]      Committee Hansard, 13 March 2003, p. 425.

[46]      Committee Hansard, 13 March 2003, p. 441.

[47]      Submission 91, p. 1.

[48]      Committee Hansard, 23 May 2003, p. 509.

[49]      Committee Hansard, 12 March 2003, p. 390.

[50]      Committee Hansard, 27 February 2003, p. 352.

[51]      Committee Hansard, 13 March 2003, p. 440.

[52]      Committee Hansard, 26 February 2003, p. 287.

[53]      Committee Hansard, 27 February 2003, p. 354.

[54]      Committee Hansard, 12 March 2003, p. 384.

[55]      Committee Hansard, 12 March 2003, p. 386.

[56]      Supplementary Submission  117, p. 9.

[57]      Frank Cicutto, ‘Banking in a Competitive Environment’, Journal of Banking and Financial Services, vol. 116. no. 2, April 2002, p. 8. See also Submission 118, p. 3.

[58]      Submission 118, p. 3.

[59]      Submission 118, p. 3.

[60]      Submission 28, p. 1.

[61]      Submission 90, p. 1.

[62]      Submission 77, pp. 2, 13.

[63]      Committee Hansard, 12 March 2003, p. 385.

[64]      Committee Hansard, 12 March 2003, p. 385. Australia Post is also conducting market research to determine what further services might be provided under its banking services banner.  Serious attention is being given to: account transfer functionality; credit/debit card pick up from Australia Post outlets; and credit/debit card activation at Australia Post outlets.

          Australia Post is confident that it will continue to extend and develop its banking services as more financial institutions join giroPost, as its on-line network grows and as it expands its product range. See Submission 106, p. 5.

[65]      Submission 38, p. 11.

[66]      Robert Adam, Committee Hansard, 13 March 2003, p. 425.

Chapter 10 - Rural transaction centres

[1]        Press Release, Minister for Primary Industries and Energy, Mr John Anderson, 13 May 1997 and Press Release, Minister for Primary Industries and Energy, Mr John Anderson, 11 November 1997.

[2]        Press Release, Minister for Primary Industries and Energy, Mr John Anderson, 13 May 1997.

[3]        Submission 109, p. 9. See also Dr Gary Lewis, ‘Laughing All the Way to the Credit Union’: the CreditCare Experience in ‘No Bank’ Towns 1995–2000, ACCORD, University of Technology, Sydney, November 2001, p. 72.

[4]        Submission 109, p. 9. See also Dr Gary Lewis, ‘Laughing All the Way to the Credit Union’: the CreditCare Experience in ‘No Bank’ Towns 1995–2000, ACCORD, University of Technology, Sydney, November 2001, p. 72.

[5]        Notes taken during the Committee’s site inspection of the Crows Nest Community Bank, 21 May 2003.

[6]        Submission 109, p. 23.

[7]        Gary Lewis, ‘Laughing All the Way to the Credit Union’ The CreditCare Experience in ‘No Bank’ Towns 1995–2000’, ACCORD, University of Technology, Sydney, November 2001, p. 10.

[8]        Committee Hansard, 25 February 2003, p. 167.

[9]        Submission 109, p. 23.

[10]      Submission 109, p. 25.

[11]      Department of Transport and Regional Services, Submission 127, p. 4.

[12]      Joint Media Release, John Anderson, Minister for Transport and Regional Services and Senator Ian Macdonald, Minister for Regional Services, Territories and Local Government, ‘$70 million kickstart for Rural Services’, 11 March 1999, No. A29/99.

[13]      Press Release, Senator the Hon Ian Macdonald, Minister for Regional Services, Territories and Local Government, ‘Launch of the first Rural Transaction Centre, Eugowra NSW’, 28 October 1999: address, MS27/99.

[14]      Department of Transport and Regional Services, Submission 127, p. 4.

[15]      Department of Transport and Regional Services, Submission 127, p. 4.

[16]      Submission 106, p. 3.

[17]      Rural Transaction Centres, ‘Licensed Post Offices; http://www.dotars.gov.au/rtc/epos/index.htm  (7 April 2003).

[18]      Committee Hansard, 12 March 2003, p. 393. The annual technology fee is in the vicinity of $1,500.

[19]      Committee Hansard, 27 February 2003, p. 358.

[20]      Submission 59, p. 1.

[21]      CUSCAL, Submission 109, p. 26. See also The Gunning Shire Council, Submission 56, p. 1.

[22]      Committee Hansard, 12 March 2003, p. 374.

[23]      Information gathered during the Committee’s inspection of the RTC at Port Broughton, 13 March 2003.

[24]      Information gathered during the Committee’s inspection of the RTC at Blackbutt, 21 May 2003.

[25]      See also the Manangatang Improvement Group Inc, Submission 90, p. 1.

[26]      Submission 8, pp. 1–2.

[27]      Press Release, Narrandera Shire Council.

[28]      Submission 36, p. 1.

[29]      Submission 116, p. [5].

[30]      The Summerland Credit Union Limited, Submission 116, p. [6].

[31]      Submission 10, p. 1.

[32]      The Summerland Credit Union Limited, Submission 116, p. [6].

[33]      Submission 121, p. 8.

[34]      Submission 121, p. 8.

[35]      Submission 121, p. 4.

[36]      Submission 110, p. 10.

[37]      Submission 69, p. 2.

[38]      Submission 116, p. [6].

[39]      Department of Transport and Regional Services, Submission 127, p. 1.

[40]      Committee Hansard, 25 February 2003, p. 158.

[41]      The Summerland Credit Union Limited, Submission 116, p. [6]. See also evidence by the TCU, Committee Hansard, 21 July 2003, p. 527.

[42]      The Summerland Credit Union Limited, Submission 116, p. [6].

[43]      Submission 109, p. 26.

[44]      Submission 109, p. 27.

[45]      Fraser Read-Smith, Committee Hansard, 23 May 2003, pp. 492–3.

[46]      Committee Hansard, 23 May 2003, p. 494.

[47]      Committee Hansard, 25 February 2003, p. 167. See also Submission 109, p. 27.

[48]      Submission 109, p. 27.

[49]      Department of Transport and Regional Services, Submission 127, p. 1.

[50]      Submission 109, p. 27.

[51]      Submission 56, p. 1.

[52]      Submission 80, p. 2.

[53]      See Chapter 3, para. 3.51.

[54]      Submission 109, p. 26.

[55]      Committee Hansard, 22 May 2003, p. 455. He stated further ‘Rosalie has 13 individual small communities, and the program was aimed more at areas where there was a larger population in a more confined area...we had difficulty getting understanding in Canberra as to the number of townships that are outlined here—that some of them were only three or four kilometres away, with 200 or 300 people in each town, but that, when you get to the local politics, they are distinctly local, distinctly two different towns. That, as well as the understanding of the very decentralised nature of the place, was difficult to get across.’

[56]      Correspondence received as additional information, Nyirranggulung Mardrulk Ngadberre Regional Council to Committee, 11 September 2003. This correspondence follows a submission by the Gulin Gulin & Weemol Community Aboriginal Council. Gulin Gulin is a member community for this region.

[57]      Department of Transport and Regional Services, Submission 127, p. 10.

[58]      Committee Hansard, 25 February 2003, p. 169.

[59]      Committee Hansard, 25 February 2003, p. 158.

[60]      Submission 31, p. 1.

[61]      The East Gippsland Shire Council recommended that the Federal Government provide through the RTC Program incentives to rural Councils to enter into agency arrangements with banks Submission 75, pp. 3, 5.

[62]      The Summerland Credit Union Limited, Submission 116, p. [6].

[63]      Submission 16, p. 1.

[64]      Committee Hansard, 22 May 2003, p. 481.

[65]      Committee Hansard, 22 May 2003, p. 473.

[66]      Committee Hansard, 26 February 2003, p. 246.

Chapter 11 - Automatic teller machines and electronic funds transfer at point of sale terminal

[1]        Reserve Bank of Australia, C05 Points of Access to the Australian Payments System, http://www.rba.gov.au/Statistics/Bulletin/index.html#table_C  (updated version, 9 July 2003); Australian Payments Clearing Association Limited, Number of ATMs and EFTPOS terminals, http://www.apca.com.au/Public/apca01_live.nsf/All/B59D1DB6DBB94A256DB... (9 October 2003)

[2]        Reserve Bank of Australia, ‘The Changing Australian Retail Payments Landscape’, Reserve Bank of Australia Bulletin, July 2003, p. 4.

[3]        APCA, Payments Monitor, Fourth Quarter 2001.

[4]        APCA, Payments Monitor, Fourth Quarter 2001.

[5]        The growing popularity of ATMs and EFTPOS was discussed in chapter 2 under the headings, ‘Technological developments’ and ‘Changes in consumer preferences’, paragraphs 2.24– 2.39.

[6]        APRA, Form ARF 396.0: Points of Presence.

[7]        See for example, Report of the Human Rights and Equal Opportunity Commission on a reference from the Attorney-General, Accessibility of electronic commerce and new service and information technologies for older Australians and people with a disability, 31 March 2000, p. 9 of 35,  http://www.hreoc.gov.au/disability_rights/inquiries/ecom/ecomrep.htm  (31 October 2002).

[8]        Submission 8, p. 1. APRA, Form ARF 396.0: Points of Presence, also describes similar means of payments—Electronic Funds Transfer at Point of Banking (EFTPOB) and Credit Authorised Transfer (CAT)/CAT with Merchant Data CAPture (CAT/CAP).

[9]        Submission 5, p. 2.

[10]      Submission 3, p. 2.

[11]      Submission 34, p. 2.

[12]      See for example Christopher Kent and Guy Debelle, Trends in the Australian Banking System: Implications for Financial System Stability and Monetary Policy, Research Discussion Paper, Reserve Bank of Australia, March 1999, p. 9. Notes on Bank Fees in Australia, prepared for the information of members of the House of Representatives Standing Committee on Economics, Finance and Public Administration, May 2000.

[13]      See also Tim Noonan, Accessible E-Commerce in Australia, A Discussion Paper about the Effects of Electronic Commerce Developments on People with Disabilities, p. 30 of 91 http://www.softspeak.community.au/ecrep10.htm  (30 October 2002).

[14]      The Table is a compilation of figures taken from Reserve Bank of Australia Bulletin, June 1999, p. 3; July 2001, p. 3; and April 2003, p. 3. There is a discrepancy in the figure given for 2001 for fees on cheques with the 2001 figures recording a fee of $1.00. 

[15]      Submission 25, p. 2.

[16]      Submission 8, p. 2.

[17]      Submission 5, p. 2.

[18]      Committee Hansard, 22 May 2003, p. 465.

[19]      Committee Hansard, 25 February 2003, p. 130.

[20]      Submission 13, p. 2.

[21]      Submission 35, p. 1. The Swan Hill Rural City Council also suggested that there was merit in considering ‘some form of assistance to business in the smaller communities to install and utilise EFTPos facilities within their establishment.’ Submission 13 , p. 2.

[22]      Submission 28, p. 1.

[23]      Submission 64, p. 1.

[24]      Submission 77, p. 8.

[25]      See Australian Bankers’ Association, Media Release, ‘Launch of Industry Standards—important steps to help overcome the digital divide for people with disabilities and older Australians, 15 April 2002 and ‘Credit where credit is due HREOC welcomes banking standards’, Australian Bankers’ Association, 15 April 2002, Association Article, www.bankers.asn.au See also Australian Bankers’ Association, Australian Bankers’ Association Industry Standard, for ATMs, Australian Bankers’ Association Industry Standard, for EFTPOS. Paul Budde Communication Pty Ltd., Telecommunications and Information Highways, Australia—EFTPOS, ATMs. doc, 2003.

[26]      Australian Bankers’ Association, Australian Bankers’ Association Industry Standard, for ATMs, April 2002, p. 44.

[27]      Australian Bankers’ Association, Media Release, ‘Credit where credit is due HREOC welcomes banking standards’, 15 April 2002.

[28]      Australian Human Rights and Equal Opportunity Commission, Media Release ‘Credit where credit is due HREOC welcomes banking standards’, 15 April 2002, http://www.hreoc.gov.au/media_releases/2002/18_02html  (26 April 2003.)

[29]      ATM Industry Steering Group, Discussion Paper Direct Charging for ‘Foreign’ Automatic Teller Machine (ATM) Transactions in Australia, 4 March 2003, p. 3 of 24.

[30]      New data collected by the Reserve Bank of Australia shows that ‘foreign ATM transactions have increased significantly to more than 40 per cent of ATM cash withdrawals in 2002, up from around 30 per cent in 1999’. Reserve Bank of Australia, ‘The Changing Australian Retail Payments Landscape; Reserve Bank of Australia Bulletin, July 2003, p. 7.

[31]      Submission 104, p. 8.

[32]      ATM Industry Steering Group, Discussion Paper Direct Charging for ‘Foreign’ Automatic Teller Machine (ATM) Transactions in Australia, 4 March 2003, p. 16 of 24.

Chapter 12 - Telephone and Internet banking

[1]        Christopher Kent and Guy Debelle, Trends in the Australian Banking System: Implications for Financial System Stability and Monetary Policy, Research Discussion Paper, Reserve Bank of Australia, March 1999. Financial System Inquiry, Final Report, March 1997, pp. 99–109.

[2]        Definition given in Gary Madden and Grant Coble-Neal, ‘Internet Economics and Policy: An Australian Perspective’, The Economic Record, vol. 78, no. 242, September 2002, pp. 343–357.

[3]        See Gary Madden and Grant Coble-Neal, ‘Internet Economics and Policy: An Australian Perspective’, The Economic Record, vol. 78, no. 242, September 2002, p. 345.

[4]        John Simon and Sharon Wardrop, ‘Australian Use of Information Technology and its Contribution to Growth’, Research Discussion Paper, 2002–02, January 2002, pp. 1–3;  Australian Bureau of Statistics, Household Use of Information Technology, Catalogue No. 8146.0, Commonwealth of Australia, Canberra, May 2001, p. 3.

[5]        Dr Jennifer Curtin, ‘A Digital Divide in Rural and Regional Australia,’ Current Issues Brief 1, 2001–02, Department of the Parliamentary Library, 7 August 2001, p. 1.

[6]        Australian Bureau of Statistics, Household Use of Information Technology, 2001–02, Catalogue No. 8146.0, Canberra, September 2003, p. 5.

[7]        Statistics taken from Australian Bureau of Statistics, Household Use of Information Technology, 2001–02, Catalogue No. 8146.0, Canberra, September 2003, Table 2.1, p. 8. These figures differ slightly from statistics recorded in earlier series. For example the percentage figures given in the earlier series published in 2001 for the total proportion of all households with access to a home computer was 45 per cent for 1998 and 48 per cent for 1999.

[8]        Statistics taken from Australian Bureau of Statistics, Household Use of Information Technology, Catalogue No. 8146.0, Canberra, May 2001, p. 5.

[9]        Australian Bureau of Statistics, Household Use of Information Technology, Catalogue No. 8146.0, Canberra, May 2001.

[10]      Statistics taken from Australian Bureau of Statistics, Household Use of Information Technology, 2001–02, Catalogue No. 8146.0, Canberra, September 2003, Table 2.2, p. 9.

[11]      Dr Bruce Swanson, ‘Information Technology and Under-Served Communities’, http://www.telehealth.org/au/discussion_papers/info_tech.html  (29 October 2002).

[12]      Submission 41, p. 1.

[13]      Statistics taken from Australian Bureau of Statistics, Household Use of Information Technology, Catalogue No. 8146.0, Canberra, 6 June 2000, p. 18; 8 May 2001, p. 19; and 10 September 2003, pp. 38 and 39.

[14]      Australian Bureau of Statistics, Household Use of Information Technology, Catalogue No. 8146.0, Canberra, May 1999, p. 8.

[15]      Table compiled from two sources—Australian Bureau of Statistics, Household Use of Information Technology, Catalogue No. 8146.6, Canberra, June 2000, p. 18 and 8 May 2001, p.19.

[16]      ANZ Survey of Adult Financial Literacy in Australia, Stage 2: Telephone Survey Report, April 2003, Prepared by Roy Morgan Research, Melbourne, pp. 51, 68 and 74 and ANZ Survey of Adult Financial Literacy in Australia, Final Report, May 2003, prepared by Roy Morgan, Melbourne, p. 30.

[17]      Malcolm Rodgers, E-finance: trends and regulatory responses, Monetary Authority of Singapore Capital Markets Seminar, ASIC, May 2002, p. 4.

[18]      Submission 117, p. 4. See also Tim O’Leary, National Australia Bank, Committee Hansard, February 2003, p. 317.

[19]      Submission 117, p. 5.

[20]      Submission 31, p. 1.

[21]      Submission 5, p. 1.

[22]      Catherine O’Connor, ‘How your town can use the Internet’, The Regional Institute Ltd, First National Conference on the Future of Australia’s Country Towns, p. 1 and 2 of 4. http://www.regional.org.au/au/countrytowns/ideas/oconnor.htm   (1 October 2002); http://pandora.nla.gov.au/pan/13170/200010711/www.hreoc.gov.au/speeches/humanrights/hr_older_aus_bush.html  (29 October 2002,)

[23]      Submission 25, p. 2.

[24]      Submission 117, p. 5.

[25]      The Online Access Centre Association of Tasmania submission to the Regional Telecommunications Inquiry.

[26]      Submission 109, p. 22.

[27]      Submission 93, p. 3.

[28]      Committee Hansard, 14 November 2002, p. 45.

[29]      See for example, Robert Parker and Franco Papandrea, The Rural and Regional Guide to E-Commerce, the Rural Industries Research and Development Corporation, Canberra, May 2002, p. xiii and Catherine O’Connor, ‘How your town can use the Internet’, First National Conference on the Future of Australia’s Country Towns, http://www.regional.org.au/au/countrytowns/ideas/oconnor.htm  p. 1, (11 February 2003).

[30]      See Redland Shire Council, Submission 89, p. 2 and footnote 31 and 34 below.

[31]      For example, the Department of Agriculture, Fisheries and Forestry, recognised that critical limitations to the efficient uptake of new methods of service delivery include inadequate levels of infrastructure in some areas of non-urban Australia that affect the supply of technology-based services; attitudinal and cultural prejudices against change and an unwillingness to adopt new ways of conducting banking and financial service transactions. Submission 105, p. 17. The Goulburn Shire Council stated that electronic options are not always available or reliable. Submission 41, p. 1.

[32]      Department of Communications, Information Technology and the Arts, Connecting regional Australia; The Report of the Regional Telecommunications Inquiry, Canberra, November 2002, p. 1.

[33]      See for example the Western Division Group of the Shires Association of NSW which stated that ‘communities have some way to go yet in remote areas to be comparable with metropolitan Australia’ and the Warren-Blackwood Economic Alliance which stated succinctly: ‘Any improvement of service has been partial which renders the rural and regional communities continuing to lag behind the cities re performance and quality of service’. See also the following submissions to the Regional Telecommunications Inquiry: the Northern Regional Development Board, the Online Access Centre Association of Tasmania, the Outback Areas Community Development Trust and the South West Development Commission.

[34]      See for example, the Local Government Association of Tasmania which submitted, ‘Many businesses reliant on Internet services report very slow speeds for data retrieval and often services drop out altogether. Many farmers throughout the State are significant users of the Internet for their business operations. Indeed as a sector of industry, they are one of the highest users. However, reliability is cited as a constant frustration and while broadband services are not their key requirement ‘broader’ band offering greater reliability and speed certainly is’. The Local Government Association of Tasmania submission to the Regional Telecommunications Inquiry. The Western Australian Farmers Federation maintained that ‘the timely installation, repair and reliability of basic telephone services in regional, rural and remote Australia is still perceived to be below an acceptable standard by the people in these areas’. Moreover that ‘reliable access to the Internet is just not happening’.

[35]      Department of Communications, Information Technology and the Arts, Connecting regional Australia; The report of the Regional Telecommunications Inquiry, Canberra, November 2002, p. 3.

[36]      See for example, Brian Goodfellow, Elders Rural Bank, Committee Hansard, 12 March 2003, p. 369. He identified line speed as a particular problem which he claimed was ‘driven by the sheer geographical locations. If you look at Western Australia, in the south west, that is not necessarily an issue, but if you look into the far-reaching areas of the Northern Territory and Western Australia, reception availability does vary considerably.’

[37]      See the Swan Hill Rural City Council, Submission 13, p. 1. The Post Office Agents Association Ltd agreed that, ‘There is yet to be universal access of sufficient quality to Internet services in rural and remote locations’, Submission 77, p. 8.

[38]      Committee Hansard, 26 February 2003, p. 275.

[39]      Submission 125, p. 1.

[40]      Submission 33, pp. 1, 2.

[41]      Submission 4, p. 1; Submission 10, p. 1; Submission 104, p. 6; Submission 56. p. 2 and Submission 8, p. 2.

[42]      Submission 116, p. 6.

[43]      Broadband Advisory Group, Australia’s Broadband Connectivity, The Broadband Advisory Group’s Report to Government, National Office for the Information Economy, Commonwealth of Australia, Canberra, 2003, p. 12.

[44]      Broadband Advisory Group, Australia’s Broadband Connectivity, The Broadband Advisory Group’s Report to Government, National Office for the Information Economy, Commonwealth of Australia, Canberra, 2003, p. 12. It cited data from the ACCC that shows there was ‘a 162 per cent increase in broadband take-up in Australia between 31 July 2001 and 30 September 2002. Over the same period the number of business customers increased by 333 per cent (now 71,500) and the number of residential customers increased by 97 per cent (now 204,900). Significantly, there was a 23 per cent increase in take-up in the June to September 2002 quarter.’

[45]      Wheatbelt Development Commission submission to the Regional Telecommunications Inquiry. It stated: ‘these old lines do not allow for ‘normal’ data speed with most being below 28.8kps (and possibly closer to 14.4kps). Most of these farms are outside the range of ADSL or ISDN and therefore the option being suggested to them by service providers is to use satellite technology. There is no doubt that this technology is available and allows high band wide for data community. However, the cost of satellite technology places its viability beyond the reach of most farmers that require greater bandwidth. There needs to be more options made available to farmers that are cost effective and deliver high bandwidth’. The Local Government of Tasmania expressed similar views. It stated: ‘Telstra advertises the benefits of their national broadband services, however, it is only available to many of Tasmania’s regional areas via satellite (ie residents/businesses must install their own satellite dish). Given the excessive costs associated with not only the set up in addition to the download costs, it is extremely doubtful that the local businesses or industries within these municipalities could effectively utilize the service.

[46]      Regional Australia Summit: Final Report of the Regional Australia Summit Steering Committee, December 2000, p. 23.

[47]      Regional Australia Summit: Final Report of the Regional Australia Summit Steering Committee, December 2000, p. 23.

[48]      Submission 75, p. 4.

[49]      Submission 27, p. 2. It noted further that a recent scheme had provided satellite Internet service at excellent subsidies to some properties with radio-telephony. This facility, however, was not made available across the board to everyone restricted by DRCS/HCRC radio telephone connections. It stated there is no way that people with this level of connection can have any sort of reasonable Internet connection for financial services. See also Mayor Strohfeld, Committee Hansard, 22 May 2003, p. 470; Mr Richard Brittain, Committee Hansard, 22 May 2003, p. 474.

[50]      Submission 24, p. 1.

[51]      See for example, the Local Government Association of South Australia submission to the Regional Telecommunications Inquiry.

[52]      Committee Hansard, 14 November 2002, p. 45.

[53]      Broadband Advisory Group, Australia’s Broadband Connectivity, The Broadband Advisory Group’s Report to Government, National Office for the Information Economy, Commonwealth of Australia Canberra, 2003, p. 23.

[54]      ibid., p. 23.

[55]      Department of Communications, Information Technology and the Arts, Connecting regional Australia; The report of the Regional Telecommunications Inquiry, Canberra, November 2002, p. 30.

[56]      ibid., pp. 249–50. The Inquiry recommended that the Government should provide funding for future service improvements in regional, rural and remote Australia, rather than imposing financial obligations on industry.

[57]      The Local Government Association of South Australia identified problems applying specifically to country areas that included: the lack of broadband availability—no small scale installation packages (ADSL); price and the lack of entry level product packaging; last mile infrastructure limitations; and a lack of incentive for the industry to develop broadband delivery solutions for low or non-profit situations. See the Local Government Association of South Australia submission to the Regional Telecommunications Inquiry and also submissions from the Local Government Association of Tasmania, Northern Regional Development Board; Online Access Centre Association of Tasmania; OutBack Areas Community Development Trust; South west Development Commission; The Warren-Blackwood Economic Alliance; the Western Australian Farmers Federation and the National Farmers Federation.

[58]      Submission 54, p. 2.

[59]      Submission 87, p. 2.

[60]      Submission 104, p. 6.

[61]      The Catholic Women’s League Tasmania submitted that the benefits of banking via the Internet ‘will only service relatively few that enjoy access to personal computers and even this will be available at a cost’. Submission 28, p. 1. See also Human Rights and Equal Opportunity Commission, Accessibility of electronic commerce and new service and information technologies for older Australians and people with a disability, p. 3 of 17, http://www.hreoc.gov.au/disability_rights/inquiries/ecom/ecomrep..htm  (31 March 2000).

[62]      Human Rights and Equal Opportunity Commission, Accessibility of electronic commerce and new service and information technologies for older Australians and people with a disability, 31 March 2000, p. 15 of 35, http://www.hreoc.gov.au/disability_rights/inquiries/ecom/ecomrep.htm  (31 October 2002).

[63]      ABS, Household Use of Information Technology,  2001-02, Catalogue No. 8146.0, Commonwealth of Australia, Canberra, 2003, p. 17.

[64]      See Human Rights and Equal Opportunity Commission, Building bridges over the digital divide, http://www.hreoc.gov.au/disability_rights/inquiries/ecom/bridges.htm  (30 October 2002). See also the District Council of Robe which mentioned the cost of the Internet for people who do not want a computer and Internet access for work or pleasure (hardware and ongoing costs), Submission 30, p. 2.

[65]      Submission 14, p. 1.

[66]      Submission 70, p. 2.

[67]      Submission 94, p. 2.

[68]      Submission 50, p, 4.

[69]      Submission 77, p. 8.

[70]      See for example the views of CUSCAL, Submission 109, p. 13.

Chapte 13 - The potential of electronic banking

[1]        Robert Parker and Franco Papandrea, The Rural Industries Research and Development Corporation, The Rural and Regional Guide to E-Commerce, Canberra, May 2002, p. xiii.

[2]        Illustration taken from Robert Parker and Franco Papandrea, The Rural and Regional Guide to E-Commerce, the Rural Industries Research and Development Corporation, Canberra, 2002, and reproduced with the kind permission of the Rural Industries Research and Development Corporation.

[3]        Clinton Weber, Committee Hansard, 22 May 2003, p. 463.

[4]        Clinton Weber, Committee Hansard, 22 May 2003, p. 453.

[5]        Submission 37, p. 2.

[6]        Submission 37, p. 2.

[7]        Submission 56, p. 2.

[8]        Submission 84, p. 6.

[9]        Submission 125, pp. 2–3.

[10]      Submission 125, p. 2.

[11]      David Morgan, ‘Banks and the Bigger Picture’, Business and Financial Services, December 2000, p. 9.

[12]      Submission 74, p. 2.

[13]      Australian Bankers’ Association, Industry Standard: Automated Telephone Banking, para. 11.4.4

[14]      Finance Sector Union of Australia, Submission 69, p. 9.

[15]      Submission 69, p. 11.

[16]      ANZ, ANZ Survey of Adult Literacy in Australia: Final Report, prepared by Roy Morgan for the ANZ Banking Group, May 2003.

[17]      ANZ, Media Release, ‘ÁNZ releases Australia’s first financial literacy survey’, 2 May 2003.

[18]      ANZ, ANZ Survey of Adult Literacy in Australia: Final Report, prepared by Roy Morgan for the ANZ Banking Group, May 2003, pp. 15 and 17.

[19]      Submission 113, p. 1.

[20]      Submission 113, p. 3.

[21]      Submission 50, p. 2.

[22]      Submission 49, p. 2.

[23]      Committee Hansard, 22 May 2003, p. 478.

[24]      Submission 55, p. 1.

Chapter 14 - Older Australians

[1]        Australian Bureau of Statistics, Australian Social Trends 2002, Catalogue No. 4102.0, Commonwealth of Australia, Canberra, 2002, p. 7.

[2]        Australian Bureau of Statistics, Australian Social Trends 2002, Catalogue No. 4102.0, Commonwealth of Australia, Canberra, 2002, p. 9.

[3]        The Australian Bureau of Statistics found that average income falls markedly with age. See Australian Bureau of Statistics, Older People, Australia: A Social Report, 1999,  Catalogue No. 4109.0, Commonwealth of Australia, Canberra, 15 December 1999, p. 2.

[4]        Chris Sidoti, The human rights of older Australians in the bush, Speech, Rural Ageing Seminar, Bungaree Station, 1 November 1999, p. 4 of 7 http://pandora.nla.gov.au/pan/13170/200010711/www.hreoc.gov.au/speeches/human_rights/hr_older_aus_bush.html  (29 October 2002).

[5]        Committee Hansard, 23 May 2003, p. 504.

[6]        Chris Sidoti, The human rights of older Australians in the bush, Speech, Rural Ageing Seminar, Bungaree Station, 1 November 1999, p. 4 of 7 http://pandora.nla.gov.au/pan/13170/200010711/www.hreoc.gov.au/speeches/human_rights/hr_older_aus_bush.html  (29 October 2002).

[7]        ANZ Banking Group, ANZ Survey of Adult Financial Literacy in Australia, Stage 2: Telephone Survey Report, April 2003, prepared for ANZ Banking Group, by Roy Morgan Research, Melbourne, 2003, pp. 52, 55, 68 and 74.

[8]        This table is a compilation of data taken from four different tables nos. 11, 13, 20 and 23 in ANZ, ANZ Survey of Adult Literacy in Australia, Stage 2: Telephone Survey Report, prepared by Roy Morgan for ANZ Banking Group, April 2003, pp. 52, 55, 68 and 74. The original tables did not include figures for the 45–59 age group but the pattern established by the statistics is consistent.

[9]        ABS, Household Use of Information Technology: 2001–02, Catalogue no. 8146.0, September 2003, Commonwealth of Australia, Canberra, p. 37.

[10]      Australian Bureau of Statistics, Household Use of Information Technology, Australia, Catalogue No. 8146.0, Commonwealth of Australia, Canberra, 2003, p. 37.

[11]      Mayor Strohfeld, Committee Hansard, 22 May 2003, p. 452; Councillor Robert Smith, Boonah Shire Council, Committee Hansard, 23 May 2003, p. 501.

[12]      Submission 27, p. 1.

[13]      Submission 36, p. 1. The Shire of Nannup informed the Committee that its district is classified as a low socio-economic district with wage levels well below average and with a high level of unemployment. This coupled with a high proportion of the population being retirees creates a high demand for ‘in person’ banking services relative to the population base. Submission 42, p. 1. The Edenhope and District Community Bank Steering Committee stated that ‘Our population is ageing and many older people in the community are not receptive too much of the new electronic media for carrying out their business’. See Submission 81, p. 1.

[14]      Submission 91, p. 3.

[15]      Submission 100.

[16]      Submission 86, p. 3.

[17]      Submission 30, p. 2.

[18]      Submission 18, p. 3.

[19]      Submission 14. p. 2; Submission 31, p. [5]; Submission 40, p. 2.

[20]      Submission 38, p. 10.

[21]      See for example, Councillor Robert Smith, Boonah Shire Council, Committee Hansard, 23 May 2003, p. 501.

[22]      Committee Hansard, 26 February 2003, p. 276.

[23]      Committee Hansard, 13 March 2003, p. 422.

[24]      Committee Hansard, 26 February 2003, p. 277.

[25]      Chris Sidoti, The human rights of older Australians in the bush, Speech, Rural Ageing Seminar, Bungaree Station, 1 November 1999, p. 5 of 7 http://pandora.nla.gov.au/pan/13170/200010711/www.hreoc.gov.au/speeches/human_rights/hr_older_aus_bush.html  (29 October 2002).

[26]      Dr David Morgan, CEDA Address, Committee for Economic Development of Australia, Sydney, 21 August 2001, p. 8.

[27]      Crookwell Shire Council, Submission 57, p. 2 and footnotes 28–32 below.

[28]      Submission 125, p. 2. See also Lockhart Shire Council, Submission 25, p. 2; Barossa Council, Submission 15, p. 2; Country Women’s Association of Australia, Submission 73, p. 1.

[29]      Submission 75, pp. 3–4.

[30]      See for example District Council of Robe, Submission 30, p. 2.

[31]      Committee Hansard, 14 November 2002, p. 46.

[32]      Committee Hansard, 14 November 2002, p. 47.

[33]      Submission 16, p. 1; Submission 38, p. 10; Submission 55, p. 1; and Submission 75, p. 4.

[34]      Committee Hansard, 22 May 2003, p. 463.

[35]      Submission 26, p. 1.

[36]      Submission 38, p. 10.

[37]      Committee Hansard, 13 March 2003, pp. 432–33. See also the Country Women’s Association of Western Australia, Submission 100, p. 1. It also noted the importance of having ‘hands on instruction in the use of electronic services’.

[38]      Submission 70, p. 3.

[39]      Committee Hansard, 22 May 2003, p. 475.

[40]      Committee Hansard, 26 February 2003, p. 276.

[41]      Clinton Weber, Committee Hansard, 22 May 2003, p. 463.

[42]      Australian Bankers’ Association, Code of Banking Practice, August 2002, para 6.

[43]      See Human Rights and Equal Opportunity Commission, Building bridges over the digital divide, http://www.Hreoc.gov.au/disability_rights/inquiries/ecom/bridges.htm  (30 October 2002).

Chapter 15 - Indigenous Australians

[1]        At 30 June 2001, the estimated resident Indigenous population of Australia was 460,140, or 2.4% of the total estimated resident population of Australia. Australian Bureau of Statistics, Population Distribution Aboriginal and Torres Strait Islander Australians, 2001, p. 1. See also Australian Bureau of Statistics, Australian Social Trends 2002, Catalogue No. 4102.0, Commonwealth of Australia, Canberra, 2002, p. 55.

[2]        The Aboriginal & Torres Strait Islander Commission, New Solutions to Old Problems: Remote Indigenous Communications as Community Economic Development, Canberra, September 2002 quotes figures of 108,000 people living in 1,216 Discrete Indigenous Communities of which 24 are located in major cities or inner regional areas. According to the ABS a total of 1,216 discrete Indigenous communities were enumerated in the 2001 CHINS. Of these, 1,030 (85%) were located in Very Remote regions of Australia, with only five communities being located in major cities. The total number of communities enumerated in the 2001 CHINS was 75 less than in the 1999 survey, predominantly as a result of communities that had a small population in 1999 being found to be unoccupied at the time of the 2001 CHINS enumeration and not expected to be reoccupied within the 12 months following the survey.

[3]        Australian Bureau of Statistics, Housing and Infrastructure in Aboriginal and Torres Strait Islander Communities, Australia 2001, Catalogue No. 4710.0, Commonwealth of Australia,  Canberra, 2002, p. 13. These figures change over time, a recent ABS publication recorded that 55% of remote Aboriginal and Torres Strait Islander communities were located in the Northern Territory, 24% in Western Australia and 12% in Queensland. Australian Bureau of Statistics, Australian Social Trends 2002, Catalogue No. 4102.0, Commonwealth of Australia, Canberra, 2002, p. 56.

[4]        Australian Bureau of Statistics, Housing and Infrastructure in Aboriginal and Torres Strait Islander Communities, Australia 2001, Catalogue No. 4710.0, Commonwealth of Australia,  Canberra, 2002, p. 12. These figures fluctuate over time. More recent figures record 1,139 remote Indigenous communities across Australia in 2001. Australian Bureau of Statistics, Australian Social Trends 2002, Catalogue No. 4102.0, Commonwealth of Australia, Canberra, 2002, p. 55.

[5]        Australian Bureau of Statistics, Housing and Infrastructure in Aboriginal and Torres Strait Islander Communities, Australia 2001, Catalogue No. 4710.0, Commonwealth of Australia,  Canberra, 2002, p. 13.

[6]        See also Aboriginal & Torres Strait Islander Commission, New Solutions to Old Problems: Remote Indigenous Communications as Community Economic Development, Canberra, September 2002, Introduction, p. 2.

[7]        See also Generating finance for Indigenous development: economic realities and innovative options, a paper for the Reconciliation Australia Ltd Workshop ‘Banking and Financial Services for Indigenous Australians’, Sydney, 8–9 May 2002, p. 4.

[8]        See for example, Australian Bureau of Statistics, Australian Social Trends 2002, Education­Participation in Education: Education of Aboriginal and Torres Strait Islander Peoples. In outlining the general socioeconomic and geographic circumstances of Indigenous Australia, Mr Stephen Oxley, Assistant Secretary, Office of Aboriginal and Torres Strait Islander Affairs, cited the very high unemployment rate, the low median individual weekly income which is even lower in the rural and remote areas of Australia, the greater proportion of single parent indigenous families, the larger family size and poorer levels of English literacy and numeracy. He provided the following statistics to the Committee: in February 2000—the unemployment rate was 17.6 per cent for Indigenous people and 7.3 per cent for non-Indigenous people...in 2001, the median individual weekly income for Indigenous people was $231 compared with a non-Indigenous median of $387. Committee Hansard, 12 November 2002, p. 14. See also Human Rights and Equal Opportunity Commission, Emerging Themes, National Inquiry into Rural and Remote Education, March 2000, pp. 57–67 and ABS, Australian Social Trends 2000, Population—Population Characteristics: Socio-economic disadvantage across urban, rural and remote areas, http://libas1.parl.net/abs/abs@.nsf/5e3ac7411e37881aca2568b0007afd16/b454091b9b  (3 January 2003).

[9]        Submission 120, p. 8.

[10]      See also Siobhan Mc Donnell, Committee Hansard, 1 November 2002, p. 93.

[11]      Committee Hansard, 14 November 2002, pp. 86 and 87.

[12]      Committee Hansard, 14 November 2002, p. 93.

[13]      Submission 8, pp. 1–2; Submission 47, p. 5.

[14]      Committee Hansard, 21 July 2003, p. 528.

[15]      Committee Hansard, 21 July 2003, p. 529.

[16]      Australian Bureau of Statistics, Housing and Infrastructure in Aboriginal and Torres Strait Islander Communities, Australia 2001, Catalogue No. 4710.0, Commonwealth of Australia,  Canberra, 2002, p. 24.

[17]      See evidence Committee Hansard, 21 July 2003, p. 518. See in particular the evidence of Mrs Carol Perry, Perrys on the Daly River Pty Ltd, who has a satellite dish but not the power to run it. Committee Hansard, 21 July 2003, pp. 561–2.

[18]      Department of Communications, Information Technology and the Arts, Connecting Regional Australia: the report of the Regional Telecommunications Inquiry, Canberra, November 2002, p. 9. It stated: ‘the Government has put in place a strategic and accepted framework to resolve the difficulties faced by remote Indigenous communities in accessing appropriate and affordable telecommunications services. The direction of the Telecommunications Action Plan for Remote Indigenous Community is supported as providing a holistic and well-targeted way forward. Significant funds are currently being applied to meet the needs of remote Indigenous communities, but fully meeting the needs of these communities presents a long-term challenge, and further funding will be required in the future.’

[19]      Aboriginal & Torres Strait Islander Commission, New Solutions to Old Problems: Remote Indigenous Communications as Community Economic Development, Canberra, September 2002, executive summary, p. d [4]. See also A. E. Daly, Implications of development in telecommunications for Indigenous people in remote and rural Australia, Centre for Aboriginal Economic Policy, Research, Paper 291/2001, the Australian National University, 2001.

[20]      Committee Hansard, 21 July 2003, p. 533.

[21]      Australian Bureau of Statistics, Housing and Infrastructure in Aboriginal and Torres Strait Islander Communities, Australia 2001, Catalogue No. 4710.0, Commonwealth of Australia, Canberra, 2002, p. 26. The survey also showed that no organised electricity supply was reported for 7% of communities in the 2001 Community Housing and Infrastructure Needs Survey. The 80 communities this represents all had a reported usual population of less than 100 persons with the majority (85%) reporting a usual population of 20 or less. A total of 681 (0.6%) people were reported to be living in communities without an organised source of electricity. A further 68 (6%) communities with permanent dwellings reported having an electricity supply, but with one or more permanent dwellings which were not connected. See pp. 19–20.

[22]      Australian Bureau of Statistics, Australian Social Trends, Catalogue No. 4102.0, Canberra, 2003, p. 59.

[23]      Aboriginal & Torres Strait Islander Commission, New Solutions to Old Problems: Remote Indigenous Communications as Community Economic Development, Canberra, September 2002, p.d [ 4] and Professor Altman, Committee Hansard, 14 November 2002, p. 86.

[24]      Through $8.3 million Telecommunications Action Plan for Remote Indigenous Communities (TAPRIC) program, the Government will offer community phones to remote indigenous communities currently without access to telecommunications services.

[25]      The Government’s response to the recommendations of the Regional Telecommunications Inquiry, http://www.dcita.gov.au/Printer_Friendly/0,,0_1-2_3-4_115483-LIVE_1,00html  (1 July 2003)  See also appendix 7.

[26]      Joseph Elu, Committee Hansard, 14 November 2002, p. 101. Mr Elu told the Committee that ‘computer outlets on those islands [Torres Strait Islands] or in those communities are basically non-existent.’

[27]      Department of Communications, Information Technology and the Arts, Connecting regional Australia; the report of the Regional Telecommunications Inquiry, Canberra, November 2002, p. 3.

[28]      Submission 5, pp. 1–2.

[29]      Submission 8, p. 2.

[30]      S. McDonnell, Chasing the money story, An evaluation of the Tangentyere Bank Pilot Project and its relevance to Indigenous communities in central Australia, Centre for Aboriginal Economic Policy Research, The Australian National University, Canberra, 2003, p. 3.

[31]      Barry Smith, Committee Hansard, 12 November 2002, p. 36.

[32]      Committee Hansard, 21 July 2003, p. 553.

[33]      Committee Hansard, 22 July 2003, p. 589. See also Committee Hansard, 22 July 2003, p. 581, where Mr McDonald stated that people depending on their welfare payment ‘might be expecting it on a certain day and might swipe regularly, waiting for it to come in. They might swipe their cards 10 times in a morning, waiting for it to come in’.

[34]      Committee Hansard, 21 July 2003, p. 563.

[35]      Committee Hansard, 14 November 2002, p. 94. Professor Altman echoed the same concern: ‘Often, when Indigenous people do the shopping and swipe their card for EFTPOS, they are told they have not got the money to pay for what is there. This is where you end up with people either booking up or else returning things to the shelf until they are in a position to actually afford to pay for things with the credit that is on their card. One should not get too emotive about this—sometimes it is embarrassing and sometimes people just see it as their modus operandi—but it seems to me that we must have better ways to assist people to access their cash incomes than having them go through those sorts of processes’. Committee Hansard, 14 November 2002, p. 85.

[36]      Australian Bankers’ Association, Chairman, Media Release, 23 May 2001.

[37]      Australian Bankers’ Association, Code of Banking Practice, August 2002, para 14, p. 8.

[38]      Australian Bankers’ Association, News Conference Speech, 28 March 2001. The benchmarks were—no account keeping fees; six free non-deposit transactions per month including three over the counter withdrawals; unlimited free deposits; and no requirement for a minimum balance.

[39]      Australian Bankers’ Association, Media Release ‘ACCC’s Rejection of Basic Bank Account Disadvantages Bank Customers’, 16 December 2001. The ABA asserted that the basic bank account standards were designed ‘to create a floor or safety net of minimum standards to which all of the ten applicant banks would adhere’. The banks were to offer minimum features to holders of a health card, senior’s card and/or pensioner card and included:

•        No account keeping fees;

•        No minimum monthly or opening balances;

•        An unlimited number of fee-free deposits; and

•        Six fee-free non deposit transaction (which includes up to three over-the-counter withdrawals).

[40]      Australian Competition and Consumer Commission, Press Release, ‘ACCC Rejects Basic Bank Account Agreement Proposal: Does Not Go Far Enough’, 16 December  2002.

[41]      Louise Petschler, ‘Banks to basics’, Consuming Interest, Winter 2001, p. 10. Louise Petschler stated further that the account ‘offered no major improvement on existing accounts, no promises on fee levels once consumers are over their six transactions, and no commitment to fee restraint generally’.

[42]      Supplementary Submission 117, p. 21.

[43]      Gordon Renouf, “Book Up’ Some Consumer Problems, A Report prepared for the Australian Securities and Investments Commission, March 2002, p. 49. ASIC described book up as a term used for store credit which is common in regional and remote Australia. ‘Book up’ (or ‘book down’) involves a trader offering small amounts of short-term credit to individuals. Typical traders are stores, taxi drivers, hawkers and regional airlines’. ASIC, ‘Book up’ Some Consumer Problems, A report prepared for the Australian Securities and Investments Commission by Gordon Renouf, March 2002, p. 1.

[44]      Submission 128, p. 5.

[45]      Committee Hansard, 14 November 2002, p. 85.

[46]      Committee Hansard, 21 July 2003, p. 531.

[47]      Committee Hansard, 22 July 2003, p. 586. Mr Acfield drew from his experiences in Western Australia ‘I worked for another remote community organisation in Western Australia and there is a lot of evidence of Aboriginal people being ripped off by storekeepers and so on in the transaction process’. Committee Hansard, 22 July 2003, p. 586.

[48]      Committee Hansard, 14 November 2002, p, 99.

[49]      Committee Hansard, 21 July 2003, p. 548.

[50]      Committee Hansard, 21 July 2003, p. 548.

[51]      Committee Hansard, 21 July 2003, p. 549.

[52]      Committee Hansard, 21 July 2003, p. 549.

[53]      Committee Hansard, 21 July 2003, p. 532.

[54]      Submission 5, p. 2.

[55]      Committee Hansard, 14 November 2002, p. 98.

[56]      Committee Hansard, 21 July 2003, pp. 541–2.

[57]      Australian Bureau of Statistics, Australian Social Trends 2002, Education—Participation in Education: Education of Aboriginal and Torres Strait Islander Peoples.

[58]      Committee Hansard, 22 July 2003, p. 582. See also Human Rights and Equal Opportunity Commission, Emerging Themes, National Inquiry into Rural and Remote Education, March 2000, pp. 57–67. The Commission found that in many parts of Australia Indigenous people—adults and children alike—have become alienated from the school system’, p. 57.

[59]      The Bank of Montreal provides practical examples of how it went about encouraging Aboriginal communities to embrace electronic banking. The focus was on drawing on people from within the community to provide personal assistance to members of the community. In one case the bank hired a respected aboriginal man in the community to be the ‘elder adviser on operation of the ATM’. Ron Jamieson, Bank of Montreal, Indigenous Banking dinner speech.

[60]      Committee Hansard, 22 July 2003, p. 578.

[61]      Committee Hansard, 22 July 2003, p. 578.

[62]      Committee Hansard, 21 July 2003, p. 517.

[63]      Committee Hansard, 21 July 2003, p. 520.

Chapter 16 - The cultural environment

[1]        Professor Jon Altman, Committee Hansard, 14 November 2002, p. 83.

[2]        Committee Hansard, 12 November 2002, p. 36.

[3]        Committee Hansard, 14 November 2992, p. 102.

[4]        Committee Hansard, 14 November 2002, p. 84.

[5]        Mr Barry Smith, Committee Hansard, 12 November 2002, p. 37.

[6]        Tracie Nightingale, Committee Hansard, 22 July 2003, p. 584.

[7]        Committee Hansard, 22 July 2003, p. 583.

[8]        Submission 47, pp 3–4.

[9]        Talkin’ Money Business, Proceeds of the Workshop on ‘Improving Banking and Financial Services for Indigenous Australians’, Sydney, May 2002, p. 7.

[10]      Submission 120, Executive Summary.

[11]      Talkin’ Money Business, Proceeds of the Workshop on ‘Improving Banking and Financial Services for Indigenous Australians’, Sydney, May 2002, p. 6.

[12]      William Tilmouth, Tangentyere Bank Pilot Project—a possible best practice model in the delivery of banking and financial services to Indigenous people, p. 1. Neil Westbury, ‘Feast, Famine or Fraud’, Address given at ‘Indigenous Issues in Remote and Regional Australia: A national Workshop’, 22–23 April 2002, p. 3. It should be noted that all the major banks are represented in Alice Springs through bank branches or agencies. Neil Westbury pointed out, however, that: ‘The barriers in Alice Springs primarily relate to Indigenous people’s confidence and capacity to access mainstream services and master new technology, and the flexibility of the banks to respond in addressing these issues’.

[13]      Talkin’ Money Business, Proceeds of the Workshop on ‘Improving Banking and Financial Services for Indigenous Australians’, Sydney, May 2002, p. 6.

[14]      William Tilmouth, Tangentyere Bank Pilot Project—a possible best practice model in the delivery of banking and financial services to Indigenous people, p. 2.

[15]      Talkin’ Money Business, Proceeds of the Workshop on ‘Improving Banking and Financial Services for Indigenous Australians’, Sydney, May 2002, p. 7.

[16]      Talkin’ Money Business, Proceeds of the Workshop on ‘Improving Banking and Financial Services for Indigenous Australians’, Sydney, May 2002, p. 7.

[17]      William Tilmouth, Tangentyere Bank Pilot Project—a possible best practice model in the delivery of banking and financial services to Indigenous people, p. 2.

[18]      William Tilmouth, Tangentyere Bank Pilot Project—a possible best practice model in the delivery of banking and financial services to Indigenous people, p. 2.

[19]      William Tilmouth, Tangentyere Bank Pilot Project—a possible best practice model in the delivery of banking and financial services to Indigenous people, p. 3. He explained, ‘Under the new system, clients elect to have a portion of their entitlement paid by Centrelink into a trust account operated by Tangentyere Council. When they want a food voucher, a cheque made payable to the local supermarket is drawn from the trust account. Thus under the new system people are using their own money to buy food vouchers rather than going into debt’.

[20]      William Tilmouth, Tangentyere Bank Pilot Project—a possible best practice model in the delivery of banking and financial services to Indigenous people, p. 4.

[21]      Committee Hansard, 22 July 2003, p. 578.

[22]      William Tilmouth, Tangentyere Bank Pilot Project—a possible best practice model in the delivery of banking and financial services to Indigenous people, p. 4.

[23]      Committee Hansard, 21 July 2003, p. 543.

[24]      Patrick McDonald, Committee Hansard, 22 July 2003, p. 575.

[25]      Bev McMillan, Traditional Credit Union—Access to Financial Services.

[26]      Talkin’ Money Business, Proceeds of the Workshop on ‘Improving Banking and Financial Services for Indigenous Australians’, Sydney, May 2002, p. 7.

[27]      Committee Hansard, 21 July 2003, p. 559.

[28]      Supplementary Submission 58B.

[29]      Bev McMillan, TCU, Traditional Credit Union—Access to Financial Services, pp. [3]–[4].

[30]      Committee Hansard, 21 July 2003, p. 525.

[31]      Submission 128, pp. 6–7.

[32]      Submission 128, p. 7.

[33]      Barry Smith, Committee Hansard, 12 November 2002, p. 35.

[34]      Barbara Bradshaw, General Manager of the TCU and Camille Damaso, Director, TCU, Traditional Credit Union Limited: A case study highlighting innovative approaches to the delivery of banking and financial services in Australia, p. 7.

[35]      Submission 58A, p. 1.

[36]      Committee Hansard, 21 July 2003, p. 524.

[37]      Media Release, Prime Minister, ‘Family Income Management Projects for Indigenous Communities’, 6 August 2003.

[38]      Transcript, ‘Indigenous Community Finances’, ‘Business Sunday’, 15 September 2003.

[39]      Submission 47, p.163.

[40]      Transcript, ‘Indigenous Community Finances’‘Business Sunday’, 15 September 2003

[41]      Transcript, ‘Indigenous Community Finances’, ‘Business Sunday’, 15 September 2003.

[42]      Committee Hansard, 21 July 2003, p. 526.

[43]      Supplementary submission 117, pp. 1–2.

[44]      Additional information supplied by the Department of Transport and Regional Services, 3 September 2003.

[45]      Committee Hansard, 21 July 2003, p. 543. See also comments in N. Westbury, ‘Feast, Famine or Fraud’, Address given at ‘Indigenous Consumer Issues in Remote and Regional Australia: A National Workshop, 22–23 April 2002, p. 7. The Gulin Gulin & Weemol Community Council Aboriginal Corporation maintained that the only practical solution is for people to have access to an agency or branch, and this is only likely to be provided by a combination of a credit union and the RTC program.

[46]      Committee Hansard, 22 July 2003, p. 588.

[47]      Committee Hansard, 21 July 2003, p. 527.

[48]      Correspondence received as additional information, Nyirranggulung Mardrulk Ngadberre Regional Council to Committee, 11 September 2003. This correspondence follows a submission by the Gulin Gulin & Weemol Community Aboriginal Council. Gulin Gulin is a member community for this region.

[49]      Correspondence received as additional information, Nyirranggulung Mardrulk Ngadberre Regional Council to Committee, 11 September 2003.

[50]      Committee Hansard, 14 November 2002, p. 88.

[51]      Committee Hansard, 14 November 2002, p. 88.

[52]      See also comments in N. Westbury, ‘Feast, Famine or Fraud’, Address given at ‘Indigenous Consumer Issues in Remote and Regional Australia: A National Workshop, 22–23 April 2002, p. 7

[53]      Committee Hansard, 14 November 2002, p. 79.

[54]      Peter Yu, Anthony Abraham and Danny Gilbert, Indigenous Banking and Financial Services Workshop, Sydney, 8–9 May 2002, Gilbert & Tobin, 2002, p. 2.

[55]      Peter Yu, Anthony Abraham and Danny Gilbert, Indigenous Banking and Financial Services Workshop, Sydney, 8–9 May 2002, Gilbert & Tobin, 2002, p. 3.

[56]      Submission 128, p. 3.

[57]      See the Cape York Community Financial Project Ltd, Submission 47, p. 6.

[58]      Committee Hansard, 14 November 2002, p. 91.

[59]      Submission 5, p. 2.

[60]      See for example, Generating finance for Indigenous development: economic realities and innovative options, a paper for the Reconciliation Australia Ltd Workshop ‘Banking and Financial Services for Indigenous Australians’, Sydney, 8–9 May 2002, p. 4.

[61]      Submission 128, p. 6. Attached to the term ‘Aboriginal Land’ in this quotation is a footnote which reads ’Land acquired through claim under the Aboriginal Land Rights (Northern Territory) Act 1976, held as inalienable freehold title by a designated Land Trust.’

[62]      Committee Hansard, 12 November 2002, p. 15.

Chapter 17 - Community service obligations

[1]        ‘President’s comment’ in Local Government Focus, February 2000, http:www.loc-gov-focus.aus.net/2000/February/presgr.htm   (23 December 2002).

[2]        Submission 76, p. 2. Swan Hill Rural City Council submitted that due to the protected environment in which Australian banks operate, they need ‘to recognise and take practical steps to implement socially responsible policies for their customers and staff’. Submission 13, p. 1.

[3]        Submission 114, p. 4.

[4]        Dr David Morgan, Chief Executive Officer, Westpac Banking Corporation, Committee for Economic Development of Australia, Sydney, 21 August 2000, p. 7. Mr Leon A. Davis also commented on the community’s high expectations of banks. He stated ‘bankers are conscious of their social responsibility. At Westpac it is an integral part of the way we do business and we do know that we need to focus on the needs of Australians in regional Australia. We at Westpac believe that unless financial institutions expand their view of what constitutes socially responsible behaviour they will soon lag global best practice for their industry. We do not intend to lag best practice, if only because to do so invites re-regulation with its associated costs and inefficiencies.’ Mr Leon A. Davis, Chairman, Westpac Banking Corporation, Deputy Chairman, Rio Tinto, ‘The Social Responsibilities of Corporations, Address to the Menzies Research Centre, Melbourne, 18 May 2001.

[5]        Frank Cicutto, Managing Director & Chief Executive Officer, National Australia Bank, Communitylink Speech Notes, Melbourne, 24 October 2000.

[6]        Submission 121, p. 3; See also CPS Credit Union, Submission 59, p. 3.

[7]        Comments on this matter can be found in many sources including newspaper reports and academic and professional journals. The Lockhart Shire Council submitted that ‘Banks appear to be driven solely by bottom line issues and have no regard for the social structure or stability of towns or suburbs, Submission 25, p. 2. Mr Graeme Samuel also referred to the perception in many rural communities ‘that banks don’t care about them, and that new services were only offered under pressure.’ Graeme Samuel, President, National Competition Council, ‘A Changing Australia: The Business and Social Imperatives’, presentation to the Institute of Chartered Accountants in Australia, Business Forum 2001, Melbourne, 21 May 2001, p. 9. See also Australian Bureau of Agricultural and Resources Economics (ABARE), Australian Farm Surveys, Report 2001, May 2001, p. 39, which found that farmers perceived that banking services had worsened since 1990. William Phillips, former banker, wrote that there is a strong perception the Australian banks have put shareholders first. Journal of Banking and Financial Services, August 2002, p. 10.

[8]        Submission 84, p. 14.

[9]        Committee Hansard, 26 February 2003, p 267.

[10]      Committee Hansard, 13 March 2003, p. 431.

[11]      The East Gippsland Shire Council was one of the many submissions that regarded banking and financial services as an important part of the totality of services to rural communities, Submission 75, p. 2. The Crookwell Shire Council and the Goulburn Shire Council maintained that banking services are considered to be an important base service for communities, Submission 57 and Submission 41, p. 1. The Local Government Association of Tasmania asserted that it is imperative that a minimum standard of financial service is provided to Tasmania’s communities, Submission 43, p. 1. The Gunning Shire Council echoed these words, Submission  56, p. 1 and see also  Submission 75, p. 5.

[12]      Submission 18, p. 3.

[13]      Committee Hansard, 26 February 2003, p. 270.

[14]      Chris Connolly and Khaldoun Hajaj, Financial Services and Social Exclusion, Financial Services Consumer Policy Centre, University of New South Wales, March 2001, p. 4. The Municipal Association of Victoria maintained that banking Institutions should be required to provide at least a reasonable coverage of community requirements so that no branch should be closed without ensuring that there are alternatives available which provide for after hours depositing of money, ready cashing facilities for cheques, cash withdrawal facilities with easy access. The Municipal Association of Victoria, Submission 114, p. 4.

[15]      Submission 44, p. [5].

[16]      Submission 13, p. 1.

[17]      Submission 75, p. 5 and Submission 23, p. 1.

[18]      For example, the Winton Shire Council believed that there is ‘a need for traditional banking services at present and for the foreseeable future, while infrastructure needs are addressed, and to allow generational adaptation to significant technology change’. It recommended that some sort of community service obligation for the banking sector, with a requirement across the sector to ensure that traditional banking service needs are met. Submission 27, p. 2.

[19]      Submission 76, p. 2.

[20]      Submission 76, p. 2.

[21]      Submission 18, p. 2.

[22]      Submission 91, pp. 2–3.

[23]      ibid.

[24]      Submission 76, p. 2; Submission 36, p. 1; Submission 25, p. 2.

[25]      Councillor Peter Woods, President Local Government Association of NSW, Focus, February 2000, http://www.loc-govfocus.aus.net/2000/february/presgr.htm  (23 December 2002).

[26]      Submission 69, p. 11.

[27]      Committee Hansard, 26 February 2003, p. 269.

[28]      Submission 18, p. 3; Submission 54, p. 2; Submission 85, p. [2] and Submission 93, p. 3.

[29]      Submission 84, p. 14.

[30]      Submission 84, p. 14.

[31]      Submission 52, p. 2.

[32]      Robin Borton, Submission 46, p. 2.

[33]      The Australian Banking Industry Ombudsman, Jurisdiction,  http://www.abio.org.au/ABIOWeb/ABIOWebSite.nsf/Level1Docs/B8092D217D3432 ...  (12 September 2003) and the Australian Banking Industry Ombudsman, Personal information about third parties to disputes   http://www.abio.org.au  (12 September 2003).  

[34]      Australian Bankers’ Association, Code of Banking Practice, para 5.3. August 2002.

[35]      Submission 76, p. 2.

[36]      Submission 80, p. 1.

[37]      See for example, Chapter 3, paragraphs 3.42–3.51 and Chapter 16, paragraphs 16.62–16.70.

[38]      Chapter 16, paragraphs 16.62–16.70.

[39]      Submission 80, p. 2.

[40]      The Interim Report of the Steering Committee on the Summit on Regional Australia, p. 3 of 6, http://www,dotrs.gov.au/regional/summit/outcomes/committee/report/development.htm   (29 October 2002).

[41]      Submission 76, p. 2.

[42]      The Committee notes that government grants were made to assist in the establishment of the Newcastle Stock Exchange and the Bendigo Stock Exchange which opened their doors for trading in 2000.

[43]      The Interim Report of the Steering Committee on the Summit on Regional Australia, p. 5 of 6, Economic and Business Development in Regional Communities http://www,dotrs.gov.au/regional/summit/outcomes/committee/report/development.htm   (29 October 2002).

[44]      Productivity Commission, Impact of Competition Policy Reforms on Rural and Regional Australia,  Inquiry Report, no. 8, 8 September 1999, p. xl.

[45]      Submission 80, p. 4.

[46]      Submission 80, p. 4. See also Evan Jones, ‘Rural Finance in Australia: a Troubled History’, Rural Society, vol. 12, no. 2, p. 171. Bernard Salt also considered that rural Australia is disadvantaged by the way in which social and economic data is collected. He argued that ‘until a single, reliable set of data is established, the plight of service provision in rural Australia will remain little more than anecdotal.’ ‘People erosion hits small-town wheat lands’, the Australian, 25 February 2000.

[47]      Regional Development: the Role of Governments, ACCI Review, November 2002, vol. 93, p. 3.

[48]      UK Social Invest Forum, Community Development Finance Institutions: a new financial instrument for social, economic and physical renewal, London, 2002.

[49]      Social Investment Task Force, Enterprising Communities: Wealth Beyond Welfare, London, October 2000, p. 23.

[50]      Social Investment Task Force, Enterprising Communities: Wealth Beyond Welfare, London, October 2000, p. 30.

[51]      See for example Business Link, SBS Small Firms Loan Guarantee, http://wwwbusinessadviceonline.org/cgi-bin/bv1/details.jsp?POID=1073755656&pc   (29 April 2003).

[52]      Social Investment Task Force, Enterprising Communities: Wealth Beyond Welfare  A Report to the Chancellor of the Exchequer, Executive Summary, Recommendation 3, October 2000.

[53]      ibid., Executive Summary, Recommendation 3. An update dated July 2002 stated that ‘The British Bankers’ Association intends to publish information on bank lending in deprived areas this year. Data will be presented by post-code, building on the information published by the Bank of England. They would welcome views on how the data might be used by stakeholders involved in the local regeneration agenda, so that they can refine the exercise in subsequent years.

[54]      Social Task Force, Enterprising Communities: Wealth Beyond Welfare, Progress Report, July 2001, December 2001 and July 2002.

[55]      US Code Collection, Chapter 30—Community Reinvestment, http://www4.law.cornell.edu/uscode/12/ch30.html  (25 March 2003).

[56]      This performance rating scheme is not without its critics. See Allen J. Fishbein, ‘What’s next for CRA?’, Journal of Housing and Community Development, Washington, vol. 60, issue 4, July/August 2003; Reynold F. Nesiba, and Nathan Golz, ‘Sioux Falls, Citibank, and CRA: Do US credit banks deserve their “outstanding” community reinvestment performance evaluations?’, Journal of Economic Issues,  vol. 36, issue, 2, Lincoln, June 2002.

[57]      ibid.

[58]      K Moy and A. Okagaki, Changing Capital Markets and Their Implication for Community Development Finance, prepared for the SURDNA Foundation, The Brookings Institution, 2001, p. 5.

[59]      K Moy and A. Okagaki, Changing Capital Markets and Their Implication for Community Development Finance, prepared for the SURDNA Foundation, The Brookings Institution, 2001, p. 8.

[60]      K Moy and A. Okagaki, Changing Capital Markets and Their Implication for Community Development Finance, prepared for the SURDNA Foundation, The Brookings Institution, 2001, p. 17.

[61]      G. Alperovitz, Broadening Ownership of Productive Assets: Time for a Major Collaborative Transformative Effort, http://www.capitalownership.net/lib/alperovitzConferencePaper.htm   (14 July 2003).

[62]      National Council of Welfare, Canada, Banking and Poor People: Talk is Cheap, Summer 1998, available at http://www.ncwcnbes.net/htmdocument/report%20Banking/reportbanking.htm

[63]      ibid., p 3.

[64]      Financial Consumer Agency of Canada Act, 2001 C9, available at http://laws.justice.gc.ca/en/f-11.1/57856.html  The other objects of the Agency are to:

[65]      Department of Finance, Canada, Reforming Canada’s Financial Services Sector—A Framework for the Future, http://www.fin.gc.ca/finserv/docs/finservpa_e.html  (30 April 2003).

[66]      Department of Finance, Canada, Reforming Canada’s Financial Services Sector: A Framework for the Future, June 1999, p. 62.

[67]      Professor Jon Altman, Committee Hansard, 14 November 2002, p. 86.

[68]      Professor Jon Altman, Committee Hansard, 14 November 2002, p. 86.

[69]      Professor Jon Altman, Committee Hansard, 14 November 2002, pp. 83, 86–87.

[70]      Supplementary submission 117A, p. 2.

[71]      Transcript, ‘Interviews: Westpac’s Persona’, ‘Business Sunday’, 14 September 2003.

[72]      Councillor Peter Woods, President’s comment, Focus, February 2000, http://www.lgfocus.com.au/2000/february/presgr.htm   (23 December 2003).

[73]      Submission 49, p. 2.

[74]      Committee Hansard, 26 February 2003, p. 274.

[75]      Committee Hansard 26 February 2003, p. 276.

[76]      Committee Hansard, 23 May 2003, p. 510.

[77]      Committee Hansard, 26 February 2003, p. 284.

Additional comments by Labor Members

[1]        Money Matters in the Bush, Executive Summary, p. xxvii.

[2]        ibid.

[3]        See Parliamentary Joint Committee on Corporations and Financial Services, Report on the ATM Fee Structure, January 2004, p. 23.

Appendix 4 - Points of presence by State and service channel (June 2001)

[1]        APRA, Points of Presence, 30 June 2001.