Student banking stopped
The three community banks in Baw Baw Shire have been excluded by the State Education Department from holding accounts of local state schools.
A directive from the department, Financial Manual - Financial Management for Schools, has given Victorian government schools that don't already bank with one of its approved banking suppliers - major banks Westpac, Commonwealth Australia Bank (CBA) or National Australia Bank (NAB) - to "transition" by the end of this month.
Drouin and District, Neerim District and Trafalgar and District community Bendigo banks are disappointed with the action by the Education Department. Local schools, including state schools, have been significant beneficiaries from their community grants programs.
Schools' operating accounts that must be held in the name of the school council are used for receipt of monies from local and commonwealth government sources and local funds such as voluntary contributions, donations and fund-raising activities.
The community banks are the only remaining banks in Drouin, Neerim South and Trafalgar following the closure of branches there by the major banks.
The only branches of the major banks now available in Baw Baw Shire are in Warragul.
The Drouin, Neerim and Trafalgar community banks were not willing to state what schools bank with them or did so until recently.
Drouin and district community bank chair Rod Dunlop said the government's decision did not recognise what the local banks do for their communities.
He said every school in the district had benefitted and received a high percentage of the $6 million the Drouin bank had reinvested in the district since its inception 20 years ago.
Minor school improvements, sporting equipment and scholarships as well as the Baw Baw Live4Life program running in secondary schools had all received grants from the bank, Mr Dunlop added.
"A significant percentage of the $6 million that has been distributed over the years has been to schools," he said.
The Drouin bank recently helped fund a new electronic notice board at the front of the Drouin primary school and last year contributed $250,000 to partner the State government body Latrobe Valley Authority and Baw Baw Shire council in redeveloping Drouin’s Civic Park.
Chair of the Trafalgar community bank Christine Holland said the department’s decision was short-sighted.
She said the decision would impact day-today banking and profit margins and, in turn, the amount that can be put back into the community.
As well as the Trafalgar high and primary schools other schools in the Trafalgar district have received funding from the $1.6 million it has distributed, Ms Holland said.
The Gazette was unable to contact Neerim community bank chair Bruce McDougall for comment but the bank has also been a strong contributor through its community grants program to district organisations including schools.
Member for Narracan Gary Blackwood described the mandate to schools to use one of three major banks for their accounts as “another example of state government centralised control overtaking common sense and intruding into people’s lives”.
There is no reason and it is not right to take away schools’ ability to choose to use the services of a bank in their own communities, he said.
Many, particularly in regional areas, have built long-term relationships with their local banks, Mr Blackwood added.
Nationals Member of Eastern Victoria Melina Bath said that as well as the directive to schools other state-run health services and organisations had previously been directed to close accounts with smaller regional banks and transfer to CBA, Westpac or NAB.
It reeks of another city-centric policy by the state government, she said.
Chief executive officer of the West Gippsland Healthcare Group Dan Weeks said the banking policy relating to it was instituted several years ago but the group still has some accounts with community banks.
We are pleased to bank with them as well as one of the majors and the annual Community Bendigo Bank charity golf day, a significant fund-raiser for the West Gippsland Hospital, is due to be held soon for the seventh year, Mr Weeks stated.
Government Upper House Member for Eastern Victoria Harriet Shing was asked her views on the banking directive to schools and whether she supported it but by late last week had not given her response.