G21-P007 Creating Access to Banking Services at Canada Post Outlets

Submitters' Names

John Turnbull and Tom Mitchell

Ratification Vote Results: Adopted

Proposal

The GPC will create a government-owned savings bank operated by Canada Post that will offer fee-less services to account holders at all post office branches. Bank proceeds will empower communities through the financing of democratically controlled, community environmental and social projects not commonly funded by commercial banks.

Objective

To create a publicly-owned, postal savings bank to:

• extend affordable financial services to Canadians through post offices, in particular those in small and remote communities not currently served by the commercial banks;

• provide local governments financing for important projects of social, environmental and economic significance that are not commonly financed by commercial banks; and

• connect Canadians with their federal government in a social contract that prioritizes the public interest of communities.

Benefit

Deregulated private banking financially excludes many while burdening the government and most Canadians in debt. It also fails to finance important social, economic and ecological priorities. A postal savings bank will support public utility banking. This is the form of banking we need to address our economic, social and environmental emergencies.

Supporting Comments from Submitter

Postal savings banks are common in other countries, including Austria, France, Germany, Italy, New Zealand and Korea. Japan's postal savings bank has at times in recent years been the largest savings bank in the world.

'Why we need postal banking: Canada Post has the infrastructure, experience and legal right to make finance cheaper for everyone', John Anderson, Canadian Centre for Policy Alternatives:

https://www.policyalternatives.ca/publications/monitor/why-we-need-posta…

The Sport and Prey of Capitalists: How the Rich Are Stealing Canada's Public Wealth, Chapter Six Linda McQuaig:

https://www.dundurn.com/books_/t22117/a9781459743663-the-sport-and-prey-of-capitalists

'It's Time for a Postal Bank for Everyone - How a bank in the Post Office could help you', Canadian Union of Postal Workers (CUPW):

https://www.cupw.ca/en/campaign/resources/its-time-postal-bank-everyone-...

Jim Holland, Katherine Steinhoff and Geoff Bickerton. 2014. The Banks have failed us: Postal Banking to the Rescue 22nd Rutgers University Conference on Postal and Delivery Economycs, June 4-7, Frascati, Italy.

"An examination of the ways in which the United States Postal Service and Canada Post could solve critical national problems associated with banking."

https://acorncanada.org/sites/default/files/Holland%20Steinhoff%20Bickerton%20Rutgers%202014.pdf

ACORN Canada, “Conflict of Interest: How Canada's Largest Banks Support Predatory Lending, March 2007, “Despite the demand for basic financial services, access to banks has become more difficult over time for many consumers. Many banks have chosen to close their less profitable or lower-traffic locations":

https://acorncanada.org/resource/conflict-interest-how-canadas-largest-banks-support-predatory-lending

ACORN Canada, “Protecting Canadians' Interest: Reining in the Payday Lending Industry,”November 2004." "The payday lending industry is unique in Canada. In most of the country, this billion-dollar business is completely unregulated. And it makes money by openly breaking the law against criminal interest rates."

http://www.scribd.com/doc/35804060/Payday-Lending-Report

Anderson, John. Why Canada Needs Postal Banking. Ottawa: Canadian Centre for Policy Alternatives, 2013. "The study examines the wide range of models of postal banking in many countries, and looks at the reasons why postal banking should exist in Canada, how it could work, and some of the possible options."

https://www.policyalternatives.ca/publications/reports/why-canada-needs-postal-banking

Canadian Union of Postal Workers, Banking on a Future for Canada Post: Campaign Support for Postal Banking. "Municipalities and groups that have passed resolutions or sent letters in support of expanding services like postal banking."

https://www.publicpostoffice.ca/en/campaign/resources/municipalities-and-groups-have-passed-resolutions-or-sent-letters-support

Canadian Union of Postal Workers, Banking on a Future for Posts. A financial assessment of postal banking and financial services at various postal administrations. "Six case studies – The paper looks at banking and financial services provided by postal administrations in Brazil, France, India, Italy Switzerland and the United Kingdom."

https://www.publicpostoffice.ca/sites/default/files/Banking-CUPW-Rutgers2013_en.pdf

Green Value(s)

Ecological Wisdom, Sustainability, Participatory Democracy, Social Justice

Relation to Existing Policy

Add to current GPC policy G10-p24 Bank of Canada.