Senate Inquiry Delivers Excellent Report & Recommendations.

For those of you following the push for a publicly owned people's bank here in Australia, you will be aware of the recommendations by the Senate committee's inquiry into regional bank branch closures. If not, then I would recommend that your read through their recommendations. These recommendations are certainly "on the money" and give us hope that a people's bank is now quite possible.

I will summarise the top three of the eight recommendations, but before I do, I have to bring your attention to an issue with Australia Post that could undermine the viability of using the post office outlets as full public bank branches. The Australia Post CEO has indicated that he is closing 271 post office outlets to get the number of branches down to the legislative minimum of 4,000. And he also indicated that they are lobbying the government to end the regulatory obligation to maintain 4,000 postal outlets. For more information about this issue see this release from the Citizens Party website.

So on to the recommendations:

  1. Essential service - the Committee recommends access to financial services should be designated an essential service, specifying there must be a guarantee of reasonable access to cash and financial services for all Australians.
  2. Public bank - “The committee recommends that the Australian Government commission an expert panel to investigate the feasibility of establishing a publicly owned bank. In investigating this, the panel should examine options including, but not limited to a stand-alone public bank or one associated with, and using the branch network of Australia Post.”
  3. Mandatory Code of Conduct - no more self-regulation. The Committee calls for the government to “urgently” develop a mandatory Banking Code which requires proper consultation with communities before any branches are closed, and requires the regulator to assess compliance with the code and approve any closures.

Senate Inquiry Regional Bank Closures Please read the Citizens Party media release about the Senate report handed down at the end of May. They inform us about how the inquiry got going, what the report means and acknowledges the great work of other key individuals.

There are a couple of videos by the Citizens Party that will give you more info and maybe even more hope. These are episodes of their weekly show so there will be other topics discussed.

So wherever possible please spread the word about the public bank idea and get everyone to contact their MPs and senators to let them know there is a ground swell of support for a peoples bank. Also contact your local post offices and businesses nearby to let them know the people want this idea.

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