Abandoned by RBS, the islanders who have to catch a ferry to find a bank
RESIDENTS of Barra are well used to living without all the creature comforts of city life.
But the removal of the only bank on the island, in the Outer Hebrides, is a step too far.
And yesterday, the 1,100 locals were in open revolt over RBS’s decision to close its sole branch in the village of Castlebay.
When it shuts on June 14 next year, the nearest bank will be more than 27 miles away – on another island.
RBS bosses also intended to remove the ATM – the island’s only cash machine – but backtracked amid community uproar.
For over-the-counter services, Barra residents will now have to travel more than three hours to the Lochboisdale branch on South Uist.
It will cost a motorist £26.40 to make a return trip on the CalMac ferry – after a nine-mile drive across Barra. When the ferry lands at Eriskay, it is 12 miles to the bank.
A round trip from Castlebay takes around three hours and twenty minutes – and the ferry runs irregularly.
Crossings are also often cancelled for days at a time in poor weather.
RBS tried to allay concerns by saying that the Castlebay Post Office will offer many similar services.
But a Post Office worker was sceptical about this and branded the bank closure as a ‘disgrace’. He also said pensioners and other people had been advised by the Department for Work and Pensions (DWP) to close Post Office accounts and open a bank account to manage their payments.
The DWP said this was to tackle ‘financial exclusion’ and to ‘help more people benefit from mainstream banking’. But it seems likely to create difficulties for the elderly.
There are also concerns the bank’s closure will dent the island’s fragile business economy.
Michael Morrison, 26, who opened Isle of Barra Distillers in August, said: ‘The island is in shock. Closing the only bank is crazy. It beggars
belief. I will have to go to Glasgow once a month to pick up hundreds of pounds of cash for the shop. Even if the ATM is kept open I can’t do business banking – and I need change.
‘It is OK saying we are moving to the digital age but we have a lot of old folk. Asking them to go contactless is a non-starter.’
Local councillor Donald Manford said: ‘There has been no indication this was under consideration and it is completely unacceptable that a bank largely owned by the UK taxpayer can behave in such a manner.
‘I call on the Royal Bank of Scotland to engage with island customers and businesses to find a way to ensure that the island isn’t deprived of essential financial services.’
Branch closures have been announced across Scotland. When the RBS bank in Tongue, Sutherland, shuts, the community will be left with only a Post Office.
Locals say they will have to travel to Thurso or Lairg – both around 40 miles away – for a branch.
Tongue Post Office’s owner was unsure whether they would be able to offer services such as access to savings accounts and ISAs.
Melrose, one of the most affluent towns in the Borders, will also be left without a single bank from next summer. Bank of Scotland shut its local branch last October and now the RBS will follow suit in June.
The Roxburghshire town has a population of just over 2,000 but attracts thousands of visitors each year.
In Kilwinning, Ayrshire, closure of the RBS bank means the nearest branch is four miles away in Irvine.
Retired businesswoman Betty McDerment, 70, said: ‘I really feel for the staff, worried about their jobs in the run-up to Christmas. They’re so friendly and they know you by your name. You won’t get that online.’
‘Deprived of essential services’