Westpac is postponing the closure of eight regional branches, including Cloncurry, Ingham, Tully and Gatton, while it engages in a Senate inquiry into the impacts of closures of regional banks across the country.
The inquiry was established last week following a successful motion by LNP Senator Gerard Rennick, and the Rural and Regional Affairs and Transport Committee wrote to all banking providers, asking them to halt closures of regional banking to show they were approaching the inquiry in good faith.
That had the support of Liberal, Nationals, Labor and Greens senators.
Some 92 bank branches around Australia have either closed or been slated for closure since September 2022.
The Commonwealth Bank was the first to respond to the call, announcing at the start of the week that it would halt regional bank closures while the committee's inquiry was ongoing.
Longreach NAB customers hoping for a stay of execution for that bank's closure, on April 20, would have been disappointed by NAB retail executive Krissie Jones' statement on Wednesday that NAB, while professing to work constructively with the Senate inquiry, "would be continuing its branch reshaping process during the committee's deliberations in 2023, which will include closures, consolidations and new investments to meet our customers' needs".
A Westpac spokesperson has since said it looked forward to working with the Senate References Committee Inquiry into regional banking services.
"Westpac will postpone eight regional branch closures that were announced in February 2023," the spokesperson said.
"No further decisions on regional closures will be made while we engage with the inquiry.
"We will, however, be continuing with our publicly announced branch co-location program, where we bring two branches and customer service teams together under one roof.
"These co-located branches allow us to invest and stay in communities and have been well received by customers in more than 30 locations."
Westpac branch closures announced in 2022, including at Port Douglas and Katherine, NT are still going ahead, the former this Friday and the latter next Thursday.
The postponement decision benefits eight branches in regional Australia, including Cloncurry, Ingham and Tully in North Queensland, and Gatton in the Lockyer Valley.
Kennedy MP Bob Katter welcomed the decision, saying he had been speaking strongly against the financial "abandonment" of regional Australia.
"We're deeply appreciative that we, the KAP, have achieved a pause," he said. "Whilst this is a small battle in a big war, we thank Westpac for its concisions."
KAP state Member for Hill Shane Knuth cautiously welcomed Westpac's "temporary pause" in its decision to close regional branches.
"Many Tully residents have expressed their concern to me as a lot of the elderly don't have access to online banking," he said.
"Communities such as this rely on regional branches to provide a service and direct one-on-one contact and provides local jobs in the community.
"The reality is banks' standing within the community are at an all-time low as they rack in multi-billion dollar profits while cutting services."
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Liberal and Nationals MPs welcomed Westpac's commitment to pause some regional bank closures while the inquiry is ongoing.
"Westpac's announcement is welcome news but it is effectively just a stay of execution," Senator Matt Canavan, chair of the Senate Rural and Regional Affairs and Transport Committee said. "The banks need to now work with the Senate on practical solutions to maintain people's access to financial services. We can't just leave country towns high and dry."
He said the committee was following up with Westpac on the status of the closures of its branches at Port Douglas and elsewhere.
Senator Rennick said decisions to close rural and regional banks and branches widened the gap between the cities and the regions.
"Banks need to realise they have a social licence to ensure that essential services are provided to people in the bush, where much of the wealth in this nation comes from," he said.
"We've got a case of the Australian taxpayer stepping in to underwrite the banks during the GFC and the pandemic and now the banks are walking away from their customers in the regions.
"And it's not just the businesses that need access to cash and banking services, it's also your volunteer clubs like your local footy club on the weekend. The volunteers might need a couple of thousand dollars for the table when they're selling homemade pies and their patty cakes or their sausages."
Wright MP Scott Buchholz welcomed Westpac's decision, especially given the bullish nature of the Lockyer Valley, including the opening of a new Bunnings Warehouse, a new Aldi, a new Bridgestone Tyres, a second McDonalds, and the construction and completion of a new Catholic high school to deal with high growth.
"It beggars belief as to why a bank would be leaving an economy that is growing, and I hold great concerns for CBD branches and hope this measure is applied across the board," he said.
KAP deputy leader and Hinchinbrook MP Nick Dametto said it was good to see the backlash from Westpac customers in regional areas was enough to pressure the bank into postponing its regional branch closures.
"While it seems we have been a given a short reprieve here in Ingham, it is vitally important that regional Australia take this opportunity to be heard through this inquiry and I encourage every affected person to make a submission into the inquiry by March 31.
Sally Gall
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
