Branch closures ‘will not be reconsidered’

Bank bosses’ bonuses by far outstrip savings from shutting branches

Bonus payments for RBS executives outstrip the savings from shutting dozens of Scottish branches by millions of pounds, it has emerged.

Senior management at the taxpayer-owned bank were awarded £16 million in shares last year before signing off the closures north of the border that will save just £9.5m.

Les Matheson, who runs its high street operation and is getting a £1.2m bonus, refused to rule out further branch losses as he tried to defend the existing cuts, which threaten to scar communities across Tayside and Fife.

Mr Matheson appeared before MPs yesterday over the Royal Bank of Scotland’s decision to shut 62 branches north of the border – eight of which fall in Courier Country.

He told the Scottish Affairs Committee the bank would not reconsider the closures, despite admitting it could easily afford to back down.

The £9.5m to run the branches – which amounts to an average of just £150,000 per site – is “not a significant amount of money” for the multi-billionpound operation, Mr Matheson conceded.

And although there are “no plans” for more closures he said that could change in the face of new technology and changes to customer behaviour.

In a slap in the face for those who rely on visiting a local branch, he insisted it “doesn’t make sense” to keep them open in areas when less than 1% of customers visit their branch at least once a week.

Paul Masterton, the Scottish Conservative MP, asked for clarity about whether this is “last round of closures for the foreseeable future”.

Mr Matheson responded: “We have no other plans.

“I can absolutely categorically say that.

“What I can’t categorically say is that at some point in time, if circumstance changed in particular areas or technology changes in a way that we can’t imagine right now, that things may change.”

Pete Wishart, the SNP MP and chairman of the committee, said members had been left “disappointed and frustrated with the unsatisfactory appearance of RBS executives”.

“They seem to not be listening to the deep concerns from communities right across Scotland over their branch closure programme,” said the MP, who represents Perth and North Perthshire.

“It is abundantly clear that RBS did not consult with anyone over their plan to close a third of their branches.

They do not seem to appreciate just how devastating the loss of a bank can be to a local community, and quite how important easy access to banking services is to individuals and businesses.

“Nor do they appear to have any intention to reconsider their position.”

Earlier, Unite regional officer Lyn Turner accused RBS of “spinning” the number of jobs being lost in Scotland.

He said 321 roles, including part-time ones, were being axed, while RBS claims 162 full-time equivalent jobs are going.

The Courier is campaigning against the branch closures, as well as a further 49 across the country at Bank of Scotland, which will hit older people and small businesses the hardest.

The UK Government said it could not intervene in what is a commercial decision, despite having a 71% stake in the bank.

RBS says customers who are losing their branch will still be able to perform some tasks locally at mobile banks, post offices and cash machines, and will have “more ways to bank than ever before”.

The RBS branches to close include Dundee Stobswell, Kinross, Comrie, Aberfeldy, Pitlochry, Perth’s South Street, Dunblane and Montrose.

Getty. RBS will not reverse its decision to close branches, despite admitting it could easily afford to back down.

Pete Wishart MP.