OLIVE BRANCH
RBS bosses bow to furious public outcry over closure plans and announce stay of execution for 10 of the most rural banks across Scotland
RBS finally listened to their customers yesterday and called off the closure of 10 rural branches.
But bosses warned the reprieve – for branches in the most remote areas – might only last until a review at the end of the year. The bank have come in for intense criticism over plans to shut down 62 sites
– a decision chief executive Les Matheson said was “final”.
The move to postpone 10 of the planned closures is a partial climbdown but falls well short of demands made by campaigners.
And the bank’s personal banking managing director Jane Howard, who announced the reprieve, issued a “use it or lose it” warning to customers.
Howard said: “Having listened to the concerns of customers, communities and elected representatives from all political parties, we have decided to keep 10 branches open until the end of 2018.
“During this period, we will monitor the level of transactions and new income at each branch .
“If there is a sustained and viable increase in both, then we will reconsider the closure of the relevant branch as part of a full independent review.”
The move was not enough to save RBS Group chief executive Ross McEwan a grilling by MPs who want him to explain their plans to axe the 62 branches.
McEwan had hoped to wriggle out of an appearance before the Commons Scottish Affairs committee.
But the partial climbdown did not satisfy the cross-party group of MPs.
After a meeting in private last night the committee, led by SNP veteran Pete Wishart, issued an uncompromising statement.
They announced: “Given that there is a still an active closure programme being pursued by RBS, we remain to be convinced that the threat of serious consequences for remote or deprived communities has been removed.”
“We will be calling Ross McEwan to give evidence to clarify the contents of their announcements and press him on the future of the other branches in the network.”
Unite the Union were also unconvinced and demanded answers on the fate of the other 52 branches of the bank, who are majority owned by the taxpayers.
Deputy Scottish secretary Mary Alexander said: “We should be clear about this – it is a stay of execution.
“We believe RBS were forced to offer concessions because of the campaign by Unite and by the communities.
“But if it’s good enough to make these concessions, what are the bank prepared to do about the other 52 facing the axe?
“We remain gravely concerned about the remaining closures and will be seeking an urgent meeting with top bank officials about this.”
Bank bosses yesterday issued a nine-point plan over the closures. And in a bold move, they even said they will open new branches where it makes “viable business sense”.
The U-turn means that at least some of the 158 Scottish jobs at risk will be saved.
The branches staying open were revealed as Biggar, Beauly, Castlebay on Barra, Comrie, Douglas, Gretna, Inveraray, Melrose, Kyle of Lochalsh and Tongue.
All the branches given a lifeline are in small communities where closure would have meant no high street bank left.
The plans to close the branches were part of a savage cut of 254 RBS and NatWest branches across the UK which would mean 680 job losses.
Some closures of RBS branches in Scotland are due in May with the rest following in June.
Andy Willox, of the Federation of Small Businesses, said last night: “Many businesses in the locality of these branches will be pleased that they’ve been granted a reprieve.
“But for those firms who use the other 52 branches slated for closure, today’s news will be of little comfort.”
SNP Westminster leader Ian Blackford said: “We should give credit to the people who signed petitions and spoke out and got RBS to consider.
“Because of the pressure and the leadership the SNP have given to this campaign, we now have this decision to save 10 branches to the end of 2018.
“We have to demonstrate that there is a business case for saving these branches. We need to make sure we are using these branches.”
As Westminster leader, Blackford raised the RBS closures three times since December at Prime Minister’s Questions and was in daily contact with branch executives about the closure programme.
If it’s good enough to make these concessions, what about the other branches? UNITE UNION