Banks have been accused of postponing plans to close rural branches until after the next General Election.
The criticism was levelled at the Irish Bankers' Federation at a conference hosted by the Minister of State for Rural Development, Mr Eamon O Cuiv, in Maam Cross, Connemara, yesterday. The major banks should "be more honest" about their plans, Mr Seamus Boland of Irish Rural Link told the attendance at the National Rural Development Forum.
Mr Boland said that between 40 and 50 branches of various banks had been closed in one eight month period alone. "The message out there is that a lot more branches will get the axe after the next election," he said. Mr Boland dismissed as "rubbish" a presentation given by Mr Felix O'Regan of the Irish Bankers' Federation on its information programme on restructuring.
Withdrawal of certain services in favour of electronic and telephone banking was not being well received by many people in isolated areas, he said, and lodgement of money was far too difficult.
The "one-stop shop" concept of combining banking, post office and social welfare services was working well in Britain, and this could be developed here within premises owned by banks, Mr Boland suggested. It would work particularly well where there was a credit union branch in existence, he added. Irish Rural Link represents 300 community groups.
Mr Jack Roche of Comhaltas Ceolte≤ir∅ ╔ireann in Sliabh Luachra, Co Cork, said that he was "appalled" at the attitude of the banks. There should be an obligation on banks to make a social contribution by retaining branches in areas where there had been custom, he said.
A large number of elderly people would not wish to watch promotional videos made by the Irish Bankers' Federation, or use modern communication systems like Internet banking, he said. "It behoves us all now to promote credit unions, and to tell people loud and clear that this is the respect that banks have for you, after generations of custom," Mr Roche added. Mr O'Regan defended the information campaign, and said that it was not true to suggest that sub-offices were being closed on a large scale.
At the end of 2000, there were 908 sub-offices of the bank clearing system, compared to 905 at the end of 1991, he said.
"There is nothing we can do at an industry level about bank restructuring by individual institutions, but we are simply following, with a capital "F", what's happening in the rest of Europe," he said. Mr Tom Burke of Clare County Council and an executive member of the National Federation of Retail Newsagents called on Mr O Cuiv, to introduce the minimum wage for people running post offices.
The reason why post offices were closing due to staffing was the refusal of the Department of Public Enterprise to pay postmasters properly, he said.
Rural depopulation included closures of small retail shops, he added - with 115 such outlets lost in the last five years in County Clare alone.
Mr O Cuiv, said he believed rural depopulation could be addressed. The £20 million Clar programme, which selects 15 target areas for "fast-tracking" of services, would have "rapid and positive effects", he hoped.
