STRATEGIC PARTNERS
December 2, 2002
SYDNEY -- Another Australian council is considering charging banks "rent" for ATM users who wait on public footpaths to use an ATM.
The proposal by the Holroyd council angered both local businesses and shoppers, as well as banks, according to a report in the Daily Telegraph.
Banks contend that the charge would be passed on to customers as it would add to their operating costs. Businesses also argued the charge would send customers to other shopping areas.
A similar proposal by Bathurst council has been deferred until the new year "for further discussion," according to the Daily Telegraph. (See related story Australian City Council considering ATM tax)
According to one estimate, the levy could cost each bank branch up to $9,000 ($5,034 U.S.) a year for customers to stand outside their branches.
Holroyd Council member Mark Pigram has called for a report detailing the possibility of charging the banks a "rental fee," similar to one charged to cafes with outdoor tables, which pay an annual fee of $26 ($14.54 U.S.) per chair. The report is expected to be ready by Dec. 17.
"The banks are essentially operating a business on council footpaths and making a profit," Pigram told theDaily Telegraph. "Banks have been shutting down, closing branches and reducing staff while their profits are going through the roof. Every time you use an ATM they pay a bank fee."
Pigram said long queues also posed a public liability threat, with pedestrians forced to walk around the queue. "Some banks don't even maintain the area around the ATMs and council staff have to clean up," he said.
The Commonwealth Bank called the proposal was "unfair and unreasonable." The bank, which maintains several ATMs in the local government area, said it does not have to pay ATM rental fees anywhere else in Australia.
"We already pay commercial rates and charges on our shop fronts," said bank spokesman Paul Rae. "Where does it stop? Is council going to charge a bus company a fee if it sees people waiting for a bus or the phone company if people are lined up to use a public phone?"
Bank customers yesterday said they feared they would be the ones "paying for it" if council went ahead with its plan. "If council charges the banks, then the banks will definitely pass it on," said Robyn Hough. "There is no way the bank is going to cop that fee on their own."
