The Australian Citizens Party (ACP) applauds the Senate’s recommendation from the regional bank closures inquiry to explore the creation of a public bank, which could include a post office bank.
However, the ACP expresses concerns that Australia Post CEO Paul Graham’s plans to optimise the post office network might inadvertently impact the potential rollout of a post office bank.
ACP Research Director Robert Barwick said today: “A post office bank won’t work without post offices—it’s as simple as that.
“An Aussie post office People’s Bank would be a powerful addition to the banking system in Australia, as it would be able to serve all communities through Australia Post’s network of 4,271 post offices, which is more than all private bank branches combined.
“It would give all Australians the option of banking with a public bank for benefits they don’t get from the Big Four: guaranteed deposits; guaranteed face-to-face customer service; guaranteed cash withdrawals and deposits; and low-cost business and personal loans for investment in their communities.
“But the government is allowing Australia Post to sabotage that potential by closing hundreds of post offices, and even more if it can get away with it.”
An Australian post office People’s Bank would significantly enrich the country’s banking landscape, leveraging Australia Post’s extensive network of 4,271 post offices—surpassing all private bank branches combined. This initiative aims to offer Australians unique advantages such as guaranteed deposits, personalised face-to-face customer service, secure cash transactions, and affordable business and personal loans that benefit local communities.
In a 24 October 2023 Senate Estimates hearing, Senator Henderson asked Paul Graham, “It sounds like part of your plan is to close a lot of post offices. How many do you plan to close? What is your plan?”
Graham replied, “As I said, we have a regulatory obligation to maintain 4,000 post offices. We will maintain that obligation, and 2½ thousand will be in regional and rural Australia. We have no plans other than to maintain the regulatory obligations that we have. We have 271 post offices above that regulation today.”
While recent discussions have included proposals to acquire 274 Licensed Post Offices (LPOs), the aim is to ensure a sustainable post office network while adhering to regulatory standards. Australia Post continues constructive dialogue with the government to optimise operations and maintain essential services across all communities.
He further revealed that Australia Post is continuing to lobby the government to end the regulatory obligation to maintain 4,000 postal outlets so he can withdraw postal services from hundreds or even thousands more communities.
Although the Albanese government’s recent Australia Post Modernisation Review rejected Paul Graham’s request to scrap the regulatory minimum of 4,000 postal outlets, it also rejected a call to define the 4,000 as “manned” postal outlets, which leaves open the possibility that Graham could count automated postal lockers as outlets to drastically reduce the post office network.
Barwick said: “Paul Graham’s plan is outrageous—postal services are essential services. These communities depend on their post offices, and many, many people would be severely disrupted if they lost them.
“It’s also unnecessary,” he added. “A post office People’s Bank would generate sufficient revenue to fund the existing postal network and keep it commercially viable.
“It’s a beautiful, win-win solution to save both essential services—postal and banking.”
Looking ahead, proponents like Barwick emphasize the potential benefits of a People’s Bank and caution against parallels with past challenges faced abroad.
“To save post offices, support a People’s Bank,” he said.