The Senate inquiry into bank closures in regional Australia is set to hear of the significant challenges faced by a Pilbara mining town since its last bank branch closed.
The remote town of Tom Price, more than 1,000 kilometres north of Perth, was rocked when its local Westpac branch closed its doors in 2022.
Community members have previously expressed the challenges they have faced since the branch closed, including having to travel hundreds of kilometres to access cash.
The Rural and Regional Affairs Committee, chaired by Queensland senator Matt Canavan, was initially scheduled to hand down its report in December last year.
However, following an extension, a report is expected to be tabled to the federal government in May.
Senator Canavan said the closure of Tom Price’s branch was surprising given the town’s circumstances.
“It shocks me that a region that produces so much for our nation doesn’t have a single bank branch,” he said.
He said the diminishing numbers of branches in regional Australia was “outrageous” and the way some bank closures had been orchestrated was “contemptible”.
Pain for businesses and community groups
Several businesses, representative groups, and community organisations are set to give evidence at the hearing, with limited access to banking services at the centre of their concerns.
As the nearest town to Karajini National Park — one of northern WA’s premiere tourist attractions — the lack of banking facilities and available cash in Tom Price has left locals and visitors frustrated.
Karijini Eco Retreat manager Drew Norrish said the bank’s closure meant they were forced to operate as a cashless venue.
Mr Norrish said the transition was not an easy one.
“It’s taken quite a few years to educate people,” he said.
“The reality is that the cash is still coming in, and we’re forced to take that cash all the way to Perth to deposit it.”
Mr Norrish said having to fly thousands of dollars to Perth is “a major frustration and unrealistic risk”.
He is set to speak on behalf of his own business as well as the representative bodies Australia’s North West, and the Pilbara Tourism Association.
He said while the industry favoured the move towards a cashless system, banking services were still essential while tourists continued to use physical currency.
The Senate committee will also hear testimony from local businesses affected by branch closures.
Sylvia Winkler, who is also CEO of Tom Price community organisation Nintirri, said the branch closure had major impacts on specific members of the community.
“We work with a lot of vulnerable people, who are certainly more disadvantaged due to the lack of a bank,” she said.
“One example is one of the community members in Wakathuni. He wanted to withdraw money at the pub where there are several ATMs.
“But because of his address, he couldn’t withdraw.”
Ms Winkler said she hoped the senators would acknowledge the specific challenges faced by the Pilbara community, and work to address them.
Bankwest to front hearing
The public hearing comes less than a week after Bankwest announced it would shut its remaining branches in WA citing a move towards digital banking as the reason behind the closures.
The announcement prompted committee members Matthew Canavan, Slade Brockman, and Richard Colbeck to invite Bankwest to testify at the hearing.
In a public release, Senator Canavan said he was disappointed at the announcement from Bankwest.
“These closures will impact all the communities that they operate in, reducing banking choice, and the ability to get an essential service,” he said.
Bankwest accepted the invitation and will be the last group to give evidence.