Ahead of a Senate estimates hearing on Thursday night, Paul Graham says its banking service is heading towards a loss and contracts need to be redrawn.
Australia Post CEO Paul Graham says banks are nationalising the costs of providing rural banking services to the post office, and its Bank@Post service – which lenders use as cover as they shut branches – is set to become an albatross around Australia Post’s neck if service contracts are not urgently renegotiated.
“As banks have closed hundreds of branches in regional towns, we have been left to fill that void. We are asking the banks to step up and pay a fair and reasonable return for us.”to boost funding for regional banking services, and ahead of his appearance before a Senate estimates committee on Thursday night.As Australia Post restructures to stem losses from its letter delivery business, Mr Graham said he did not want banking services to become a new burden for Australian taxpayers.
The financial stress on cash transit monopoly Armaguard, the rate of regional bank closures and the increase in services demanded by the banks are sufficient triggers for contractual reviews, he said. “The world has fundamentally changed since the agreement was put in place. We now need to work with the banks in partnership to look at all the aspects of providing the services, including security and the size of scale of facilities.
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