Regions stifled by bank exit

GETTING large development plans off the ground and retaining banks are two problems Flinders Shire Council says regional Australia faces.

The issues were highlighted in the council’s submission to a Senate inquiry into Regional Inequality in Australia.

In his submission, chief executive officer Graham King said the Big Four banks had been progressively pulling their services out of the bush.

“We need to have access to smaller banks to cover the needs of financial viability of our business and private sectors,” he said.

Many banks have pulled their services from smaller towns throughout regional Queensland and the whole country. Suncorp closed its Fairfield Waters and Flinders St Mall branches in Townsville last month.

Besides the issue with banking services access, Mr King said state and federal governments needed to better support smaller councils in attracting large scale investment.

“Flinders Shire Council has been undertaking significant economic development projects, such as attracting a beef processing plant to its area and developing a high value irrigated agricultural project,” his submission said.

“Currently there is no government support either at the Commonwealth or state level to council for the preliminary costs that council has to incur before private investors can be attracted.”

Mr King identified health, communication and education as other areas regional Australia and the Flinders region were not equal in.

The Regional Institute Australia identified two regional development challenges for Australia – rural and remote development and developing Australia’s network of regional cities.

A report on the inquiry is due in June next year.