Hi Cash Lovers,
The Australian cash industry 'cannot be sustained in its current form,' Armaguard has advised the ACCC.
Now the Australian Competition and Consumer Commission (ACCC) has extended its authorisation to the big banks to to talk with the cash industry "for the purpose of developing and evaluating urgent responses to support the viability of wholesale cash distribution and access to retail cash services.”
There is also a related ACCC authorisation currently being considered regarding continuity measures in the event of a disruption to the supply of cash.
Read the ACCC's statement issued Tuesday here.
Read Banking Day's report "ABA, ACCC widen CIT stakeholder negotiations" here.
ACCC Chairperson Gina Cass-Gottlieb made particular mention of services to rural and regional communities.
" ... it can be particularly difficult to access cash in remote and regional areas where consumers are more likely to be high cash users, bank branches are limited and often the only access is through non-bank sources including Australia Post and retailers.”
The ACCC also received 12 submissions regarding continuity measures in the event of a disruption to the supply of cash.
A number of submissions to the ACCC detail the cost pressures that Armaguard have been facing from its major customers, the banks and big retailers.
The TWU explains:
" ...a major bank has requested 15% worth of reductions despite the company (Armaguard) experiencing 25% higher on costs. While this may be viewed as healthy competition, it has real and serious impacts on the safety of workers and the public."
" ...a service contract with one major retail chain that was once for $19 million may now only be valued at $9 million despite inflationary pressures and increases to other operational costs."
Commonwealth Bank's Matt Comyn has admitted the banks have been underpaying for Cash In Transit for a long time:
"What we did was (we and others) accepted very attractive commercial terms. Perhaps we should have had the foresight to think well, that actually looks like it’s an unsustainable pricing and commercial model."
Matt Comyn is now calling for a ban on cash transactions over $500.
The major banks sit at the heart of the financial system. Only the big banks have banknote distribution agreements with the RBA. They need to support a healthy, viable, competitive CIT sector by supporting cash rather than seeking new ways to limit access to and use of cash.
Immediately banks need to accept a responsibility to support the distribution of cash nationally, renegotiate contracts and be prepared to pay more.
Longer term, banks need to develop a regime for delivering cash and banking services throughout Australia.
Government can respond to the recent senate committee inquiry into bank branch closures by:
1) Mandating acceptance of cash for fresh food and essential groceries.
2) Mandating minimum levels of cash access in every local town and community.
Australians already believe that 'legal tender' means a right to use cash to purchase goods and services.
Any move to confirm a right to choose cash can send a powerful signal that cash is not being phased out and will continue to be supported throughout Australia. Please share our petition:
www.change.org/SayNOtoCashlessAustralia
This campaign is now huge and making a big difference. Here is Natalie Barr on Sunrise talking about cash.
Please check out our Cash Welcome online shop or support our message by making a contribution to our:
CashWelcome gofundme account.
Alternatively, make a deposit to:
Cash Welcome
BSB 062-692
AC 4954 6502
Please visit our
Thanks to everyone backing Bart and I to continue pushing this campaign and petition. This is just the two of us and rely on your support to keep it all going.
Jason Bryce
jason@cashwelcome.org