The following is from Councillor Peter Woods, President NSW LGA.
Australians today face a new and unexpected challenge. Like lemmings to the slaughter, without questioning or qualification, their central government politicians and bureaucrats have taken up the catch cry of international competitiveness and economic rationalism.
All too easily these politicians and bureaucrats have glossed over the unwanted by products of globalisation &endash; like loss of local access, elimination of local job opportunities, downgrading of local knowledge, and increased exposure to international crises &endash; and continue studiously to ignore such problems despite overwhelming ever increasing evidence.
In the face of monumental lethargy over the fate of financial services provision in this country, I am therefore all the more delighted that Local Government has shown itself to be both proactive and forward looking. Councils in a number of States are taking initiatives that reflect the strength of community feeling about the future of financial services.
For example, in Victoria I see several Councils successfully establishing community banking facilities in areas abandoned by the major institutions with scant regard for the loyalty or convenience of long established customers. The action of these Councils deserves both congratulation and support.
In my own State &endash; following outrage at the 1998 Local Government Association Conference &endash; a Banking and Financial Services Taskforce has been established on a statewide basis to investigate the role Local Government can play in the provision of banking and financial services.
The Taskforce &endash; sponsored by the Local Government and Shires Associations &endash; is analysing past and future banking and financial services trends and identifying the problems and concerns of Councils and communities. It will then identify and evaluate options for Council action to retain and restore banking services to communities.
Wide ranging submissions have been made to the Taskforce from a cross section of community interests. The Taskforce is particularly interested in hearing from Councils which have been involved in actions to retain or restore banking services to the community. Councils have also been encouraged to seek community input.
A broad range of options needs to be considered, including alliances with diverse financial service providers. To the extent that Local Government carries the responsibility for new services however, it is essential that the profits be returned to local communities through their Councils.
The irresponsible banking industry, held in increasing contempt by the community, would be happy for someone else to provide traditional services while ripping off high profit items themselves. Options considered by Local Government must include the big ticket items like superannuation, financial planning, corporate investment and Local Government borrowing and lending.
Our options could include a People’s Bank, focusing on the needs of those with mobility problems, the elderly, ethnic groups, the technologically disadvantaged and other identified groupings. Equally, we need to be aware of how changes in information technology and telecommunications are reshaping the delivery of financial services. Co delivery with other financially active and decentralised organisations like credit unions, building societies, cooperatives, pharmacists and estate agents, also has potential. Our Taskforce will bring down an interim report in April, and the future course of action for Local Government in NSW will then be determined.
It would be an understatement to say that there has been great public interest in Local Government’s capacity to act on this issue, both on the part of local citizens and through the media. This is not simply an opportunity for opinion makers to rail against the behaviour of fat cat bankers, however unacceptable.
Rather, it is time for local citizens to fight back against long standing and blatant disregard by the pillars of the banking fraternity. Even more important, it is time for Local Government to take decisive action to restore the well being of local economies.
