14 June 2023

The Hon. R.A. SIMMS (14:35): It is hard to follow that, but I will try. I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional rail.

Leave granted.

The Hon. R.A. SIMMS: I am sorry the Leader of the Opposition is missing it; she would be very interested. In February, the parliamentary inquiry into public and active transport handed down its report. This contains several recommendations related to regional rail, including the incentivisation of passenger rail between Adelaide and Melbourne and the reactivation of rail for passengers and freight in the regions.

The Australian Labor Party recently released its draft National Platform for members ahead of their national conference. In chapter 1 of the document, which is published on the Labor Party's publicly accessible website, it states under sections 54 and 55:

Labor will…continue to invest in faster rail and upgraded rail corridors across the nation. Labor will work with state governments to address regional rail infrastructure needs and will ensure more trains are built in Australia to create skilled manufacturing jobs.

The document also goes on to state that:

Labor will work to ensure the resilience of our supply chain and freight networks, including considering the importance of rail in the movement of freight across Australia.

Given the synergies between the recommendations of this council's committee on public and active transport and the draft ALP National Platform, my questions to the minister are:

1. Has the minister yet read the report of the public and active transport committee, and has she raised the potential for regional rail with her Labor colleagues in the Albanese government in Canberra?

2, What action has she taken to progress the recommendations contained in the select committee report?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:37): I thank the honourable member for his question. I can see that there is a media release imminent from the honourable member, where he will try to get some coverage on the fact that, as Minister for Regional Development, I should be reading the reports of every other portfolio.

It kind of links in a little bit with the question we had from the opposition yesterday, and my comments that there are some who seem to think that, as minister, I should be minister for all the portfolios here. As one of my colleagues said in jest earlier today, perhaps I should be flattered. Perhaps those opposite and perhaps some on the crossbench think that I am so capable that I can actually be across every other minister's portfolio.

That was a light-hearted quip from one of my colleagues. I certainly don't expect or even hold myself out to be able to be across every single other portfolio. If the honourable member and those opposite are interested in the Labor government's response to reports, I am very happy to refer that to the relevant minister in the other place, the Minister for Transport, and bring back a response.

The Hon. R.A. SIMMS: Supplementary.

The Hon. H.M. Girolamo interjecting:

The PRESIDENT: We will have a supplementary from the Hon. Mr Simms when the Hon. Ms Girolamo is silent.

The Hon. R.A. SIMMS (14:39): Why hasn't the minister read the recommendations relating to the regions contained within the report of the select committee of this chamber, and when will she undertake to read it? How many times have I asked about this?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:39): I again reiterate: we have a collegial team on this side of the chamber. We have portfolio responsibilities. The Minister for Transport is responsible for transport.

The Hon. R.A. SIMMS (14:42): Supplementary: has the minister discussed the recommendations of the select committee report with the transport minister in the other place?

The PRESIDENT: Minister, you did talk about the transport minister in the other place in your original answer.

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:42): Certainly. I am pleased to be able to say that I have frequent discussions with the transport minister across a range of matters, all of which are always very fruitful.

18 May 2023

The Hon. R.A. SIMMS (15:45): I rise to indicate the Greens' support for the Rail Safety National Law (South Australia) (Fees) Amendment Bill. The Greens believe that high-quality national freight and passenger rail is essential to our modern economy and our society. Many in this place know of my ongoing interest in rail as a mode of transport, particularly in regional areas. Rail transport is accessible, it is low emission and safe.

This bill establishes a new cost-recovery method to fund the Office of the National Rail Safety Regulator. This model will align accreditation fees with the risk profile and regulatory effort expended by the regulator. These provisions will create a more equitable fee structure for rail operators. Furthermore, heritage and tourist rail operators will be exempt from accreditation and registration fees.

Currently, these operators are charged an annual fee of $2,000, which is sometimes covered by the government as a community service and usually only covers less than 5 per cent of regulating the sector. There are a number of these heritage and tourism operators in South Australia, including the mostly volunteer-run Pichi Richi Railway and the SteamRanger.

I actually went on the Pichi Richi Railway many times as a kid and I was surprised to know that they were paying a fee. These organisations are preserving the heritage of our rail networks and it is welcome news that they will now be exempt from these fees. The Greens support these changes, which will create a model with equitable fees as agreed by the Council of Australian Governments and the transport ministers. The introduction of a more proportionate fee structure to fund the Office of the National Safety Regulator is a positive step forward.

I want to use this opportunity to urge the government to look seriously at rail, particularly rail in the regions. As you would know, Acting President, I was chair of the parliamentary inquiry into public and active transport. I have not yet had an opportunity to meet with the transport minister. He has not responded to any of my requests to meet. I would welcome the opportunity to talk to him about the myriad issues in the transport portfolio, particularly relating to rail.

This bill plays an important role in addressing one issue but there are a whole heap of other issues that could be addressed. Of course, the Hon. Connie Bonaros asked questions today about the end of Rex in some of the regions. There are regional communities that are at risk of being cut off and they really rely on rail as a way of connecting them with the broader South Australian community. I urge the government to dust off that report and to meet with me so that we can discuss what might be done.

16 May 2023

The Hon. R.A. SIMMS: I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional bank closures.

Leave granted.

The Hon. R.A. SIMMS: Data from the Australian Prudential Regulation Authority has shown that the number of bank branches in South Australia has dropped from 421 in 2017 to just 127 in 2022. People living in the Limestone Coast, Murray and Mallee regions, Eyre Peninsula, Lower North, Yorke Peninsula and Mid North regions have all been affected by bank closures. On 12 May, the CEO of Kingston District Council, Nat Traeger, spoke to InDaily about the effect of bank closures on regional communities and stated that:

The effect of bank closures on business in our townships means that these businesses are unnecessarily exposed to overnight cash and security risks as they are unable to deposit their takings into a secure depository facility.

In many cases, the business owners will have to travel long distances and several hours with large sums of money, exposed to unnecessary travel and security risk, to deposit their takings at a major service hub that has a banking service. This is untenable for business owners.

InDaily also reported that in the Mid Murray region some businesses are losing a day of trade, having to travel long distances to make deposits. On 8 March this year, the Legislative Council passed a motion initiated by the Greens recognising the impact of the closure of banks on regional communities and in particular the impediment that this places on community and business activity. The motion called on the Malinauskas government to formally raise the closure of the Coober Pedy bank with Westpac and to advocate for the retention of bank branches in the regions.

My question to the minister is: has the minister formally raised the matter with Westpac and what action has the minister and the government taken to protect regional communities from bank closures since this motion passed the Legislative Council two months ago?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I thank the honourable member for his question. I would also like to congratulate Nat Traeger and all those involved with campaigning in regard to the bank in Kingston. As the honourable member has alluded to, the difficulties experienced not only by regional residents, but regional businesses are considerable when indeed they do need to travel long distances, potentially with cash on them, and also the inconveniences that that has.

I am fairly confident I mentioned in this place earlier, possibly in response to the motion that the honourable member referred to that was passed on 8 March, that our government was writing to the federal parliament's investigation into regional banking, and that certainly occurred. Both the Treasurer and I worked together with our departments to be able to put in a submission to that.

It was really quite interesting in that, when I looked at a list of the submissions that were made, I am very sad to say that I couldn't see any submissions made by those opposite. I couldn't see any submissions to that national inquiry from the opposition here in terms of regional banking, despite what they have said in this chamber about its importance. I didn't see anything from the Hon. David Speirs. I didn't see anything from the Hon. Nicola Centofanti—

Members interjecting:

The PRESIDENT: Order!

The Hon. C.M. SCRIVEN: —or anything under the heading of Liberal opposition in South Australia.

The Hon. K.J. Maher interjecting:

The PRESIDENT: Attorney!

The Hon. C.M. SCRIVEN: If indeed there was a submission made under some other name, then certainly I would be happy to be advised of that—

Members interjecting:

The PRESIDENT: Order!

The Hon. C.M. SCRIVEN: —but I think it is disappointing that, despite a lot of noise made from those opposite, they apparently have not bothered to take the time to put those towards the federal inquiry because, of course, the federal inquiry is looking at regional banking across the board and is able to hear about individual regions or individual towns most affected and is trying to look at solutions that would apply across the country. So that is the action I have taken in that regard.

The Hon. R.A. SIMMS: Supplementary: in addition to making a submission, has the minister written to Westpac and, if not, why not?

The Hon. C.M. SCRIVEN: I have written to the investigation nationally. Interestingly, I couldn't see anything from the Greens to that national inquiry either. I'm happy to be corrected if the state Greens have made a submission as well, but I think it would have been really quite meaningful if all of us in this place—opposition, crossbench and the government—had made a submission because it was certainly something that was raised a number of times in this place.

The Hon. R.A. SIMMS: Supplementary: why hasn't the minister taken action following the resolution of this council? Why hasn't she written to Westpac? That was what this council directed.

The Hon. C.M. SCRIVEN: I have outlined the action that I have taken.

16 May 2023

Regional Development Minister Clare Scriven still hasn’t raised the issue of regional bank closures with Westpac, despite a motion calling on the State Government to do so passing the Upper House unanimously in March, the Greens have today revealed.

The motion by Greens MLC Robert Simms noted that Westpac has decided to close their branch in Coober Pedy, leaving the community without a bank, and called on the Malinauskas Government to formally raise the matter with Westpac and advocate for the retention of bank branches in the regions.

In Question Time today, Mr Simms asked the Minister whether she had written to Westpac. Her answer revealed that she had not.

“I’m stunned that more than two months after this motion passed the Upper House with the support of all parties, the Minister for Regional Development still hasn’t put pen to paper to advocate to Westpac for a bank in Coober Pedy.”

“Local bank branches are essential to regional businesses and community life. I think regional communities would expect that the Minister would act promptly to ensure that they are not denied access to this basic service.”

“It seems the Minister for Regional Development really is missing in action on regional banks.”

22 March 2023

The Hon. R.A. SIMMS: I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on regional rail.

Leave granted.

The Hon. R.A. SIMMS: Today, the Adelaide Advertiser reported that planning minister Nick Champion has written to councils, many in the regions, asking for more development. This comes after the Minister for Planning announced a plan to rezone land in Murray Bridge to build a thousand new homes. Currently, the only way to get to Murray Bridge by train is on the Overland, which costs $65 and only runs twice a week. Other regional areas, such as Port Augusta, have no access to rail at all.

Earlier this month, when asked if the Minister for Regional Development had considered the recommendations from the public and active transport committee to reactivate regional rail, the minister simply replied, 'I haven't read the report.' My question to the minister therefore is: given the government's intention to increase population in the regions, has the minister now read the report of the public and active transport committee, in particular the recommendations relating to reactivating regional rail, and what action has she taken?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I thank the honourable member for his question. Certainly, in regard to the Overland, I am very pleased that that is continuing. Members might recall that under the former government, the former Liberal state government, they wanted to, in fact they did, cut the funding, modest though it was, to the Overland. It was a pre-election promise that the now Malinauskas Labor government made to reinstate that funding, which indeed we have done. Of course, it was only the Victorian Labor state government coming to the table with additional funding that allowed the Overland to continue.

In terms of a proposed trial of rail at Mount Barker, which I think is one of the things that the member is referring to, I have received a briefing about that. The purpose of the trial is to prove the viability of a passenger rail service from Mount Gambier to Adelaide Railway Station. My advice is that the proposal is from Talgo and is based on the use of a tilt train, which is also a gauge-convertible vehicle and could potentially operate on the Australian Rail Track Corporation (ARTC) standard gauge network, the Adelaide metropolitan broad gauge network and the current broad gauge connection to the Mount Barker station.

Talgo, I am advised, has not indicated if the proposed trial would demonstrate gauge conversion. Talgo needs to demonstrate to ARTC, the Department for Infrastructure and Transport, and the Office of the National Rail Safety Regulator the ability to provide a safe, reliable and effective public transport service that can be supported by a business case to inform further consideration. I am advised that the initial advice from Talgo is that the process to undertake modelling and secure necessary safety accreditation before undertaking the trial could take 12 to 18 months, and the trial will be undertaken on a no obligation basis to the South Australian government.

Discussions between the department, Talgo's local representative and the ARTC, I am advised, commenced in June 2022. Further to this, the chief executive of the department met with the President of Talgo, Mr Carlos Palacio Oriol, in September 2022 at the InnoTrans conference in Berlin to discuss the proposal to undertake the trial of the tilt train technology. I am advised that a draft non-refundable financing agreement was provided by the Secretary of State for Trade of the Spanish government. The Crown Solicitor's Office has reviewed the terms and more information, I am advised, is being provided.

The suitability of the trains for operation between Adelaide and Mount Barker, and over longer distances, was also recently discussed with Talgo at a meeting in Spain. The Chief Executive of the Department for Infrastructure and Transport facilitated a meeting with Talgo and ARTC executives on 27 February 2023 to gain an understanding of the current status of Talgo's access request to ARTC and seek to progress discussions.

I am further advised that the department has met with the Economic and Trade Commission of Spain to Australia, and she advised that an in principle agreement to enter into a formal deed with the South Australian government would be required before the application could be assessed. I am very happy to take any other questions on notice and provide an answer from the relevant minister in the other place.

The Hon. R.A. SIMMS: Supplementary: has the minister read the other recommendations in the report relating to reactivation of regional rail—not just in Mount Barker?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): There are a number of other regional rail issues which, whilst they are in the purview of the Minister for Transport in the other place, I have been able to be apprised of and have the following advice. One of those of course is in regard to the potential for commercial rail lines to operate successfully on Eyre Peninsula. Our government would be supportive of that, but of course it does need to be commercially viable. We are generally supportive of new rail infrastructure, but would need to look at this proposal and make an assessment on its merits, including the degree of private investment proposed.

To date, I am advised no detailed proposal has been presented to the South Australian government. The previous closure of Viterra's rail network has led both directly and indirectly, of course, to significant investment in port developments, but had other significant impacts as well, perhaps some of those not so positive. The government has spent significant funds improving the local road network to facilitate greater use for freight in response to Viterra's 2019 decision to cease its rail operations in the region. The government will continue to investigate options that can provide better services as we go forward.

The Hon. R.A. SIMMS: Supplementary: has the minister read the report herself or has she simply obtained a briefing?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I did answer that in the beginning of my first answer to this question.

8 March 2023

The Hon. R.A. SIMMS: I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional rail.

Leave granted.

The Hon. R.A. SIMMS: Last month, the Select Committee on Public and Active Transport handed down its report. Two of the recommendations contained in the report, recommendations 2 and 3, relate to regional rail. Under recommendation 2, the committee recommended that the state government—and I quote from the report:

…as a high priority conducts a trial of passenger train services from Mount Barker to Adelaide, with a view to adopting similar trials of services from Roseworthy to Gawler, Aldinga to Seaford and Adelaide to Port Augusta.

Under recommendation 3 the committee recommended that the state government:

(a) considers reactivation of regional rail for freight (particularly grain) and passenger services;

(b) in regards to regional rail, considers the environmental, health and wellbeing benefits of rail versus roads; and

(c) reports on expenditure on public transport in regional versus metropolitan areas per capita.

A story in yesterday's Stock Journal reports that grain producer Viterra is pushing for reinstatement of rail freight in Eyre Peninsula. Over the last five years, groups such as the South Australian Regional Rail Alliance have been calling for investment in rail infrastructure in areas including the Limestone Coast for passengers and freight. My question to the minister therefore is:

1. Has the minister read the report of the Select Committee on Public and Active Transport?

2. Does the minister support the reactivation of regional rail?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I thank the honourable member for his question. I haven't read the report that the member refers to. In terms of supporting regional rail, I think what is needed when we look at any infrastructure is a cost-benefit analysis.

The benefits to industry, the benefits to passengers, the economic impacts—both positive and also the costs—all of those things are appropriate before any decision is made. I am happy to refer details to the Minister for Transport and Infrastructure in the other place and if he has further information to add I am happy to bring that back to the chamber.

The Hon. R.A. SIMMS: Supplementary: given the focus on the regions, why hasn't the minister read the report of the committee and will she do so?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): The Minister for Infrastructure and Transport is the minister who is responsible for that type of matter—transport, funnily enough—so I am sure that he is being briefed by his department on all appropriate literature that is available on the subject.

The Hon. R.A. SIMMS: Supplementary: does the minister not consider regional rail—and in particular regional freight—to be relevant to regional development?

Members interjecting:

The PRESIDENT: Order!

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): Of course, every aspect of regional living is relevant to regional development, but that is different from being directly responsible for that. If I was to take a different view then I would potentially become minister for regional health, minister for regional transport, minister for regional education, the list would go on.

I am very fortunate that, as a regional member, I am able to have input when those discussions come up around the cabinet table as well as, of course, other discussions with my cabinet colleagues and my caucus around so much of this. Stakeholders who I meet with—which I do of course on a very regular basis, both here in Adelaide but importantly out in their own areas as well—do bring up issues which intersect with all areas of regional life. I am very fortunate to be able to have input into those discussions, but in terms of direct responsibility we of course have appropriate ministers for that.

The Hon. R.A. SIMMS: Supplementary: as part of the input into these discussions that the minister has, will she be advocating for regional rail?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I advocate for a wide range of issues. As I mentioned in my original answer, a cost-benefit analysis has to be appropriate for any type of decision that is made.

2 May 2023

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): The Minister for Infrastructure and Transport has advised:

The reactivation of regional rail is supported, where there is evidence that it sustainably meets a defined service requirement. Viterra and Aurizon's current investigation of Eyre Peninsula rail is an example of investigating rail, as part of a defined supply chain solution.

The Department for Infrastructure and Transport is assisting Viterra and Aurizon in their investigations and look forward to the outcome of their assessment and business case.

8 March 2023

The Hon. R.A. SIMMS: I want to thank all my colleagues for their contributions: the Hon. Clare Scriven, the Hon. Nicola Centofanti, the Hon. Frank Pangallo, the Hon. Connie Bonaros and the Hon. Ms Game. I recognise that all parties and indeed all members in this place are supporting this motion and I really welcome that. It demonstrates the depth of concern that runs through the parliament and indeed through our community about the actions of these banks and it is one that crosses partisan divide. I think all members of this place are very concerned about the actions of the banking sector and the disregard they show for vulnerable members of our community.

It is worth noting some of the events that have unfolded over the last 24 hours. Yesterday, the Reserve Bank of Australia lifted the cash rate by 0.25 percentage points. This means the cash rate in Australia is now at an 11-year high of 3.6 per cent. This surpasses all the interest rate hikes that we saw since the 1990s, and this is the 10th successive interest rate hike in a row.

We know that the big banks are already passing these interest rates on to their customers. They are doing this despite the fact they are making enormous profits. The Commonwealth Bank made a profit of $5.1 billion for the second half of 2022. The NAB made a $2.15 billion profit for the fourth quarter of 2022. Westpac made a $5.3 billion full-year cash profit in November 2022, and ANZ made $6.5 billion in its full-year cash profits in October 2022.

They are making these huge profits, they are hiking up interest rates, and while they are making these huge profits and hiking up interest rates they are shutting down regional banks and they are dudding their customers in those communities of vital services. They are not recognising the role that these institutions should play in terms of offering a community service. I think it is outrageous. What we are seeing is corporate greed, and I welcome the clear message that this motion will send.

I indicate that we will be supporting the amendment put forward by the honourable Leader of the Opposition, and I appreciate her speaking to me about that. The honourable member made a fair point in that she noted the fact that the motion mentions one particular financial institution. That was because the decision regarding Coober Pedy was imminent at the time the motion was originally crafted, but as all members have identified, this is a matter that extends beyond one institution. It relates to all four of the big banks.

Hopefully, this will send a very clear message that, as members of parliament, we stand shoulder to shoulder with the community and we will fight for their interests against these big institutions and their corporate greed. With that, I commend the motion.

22 February 2023

The Hon. R.A. SIMMS: I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional bank closures.

Leave granted.

The Hon. R.A. SIMMS: Yesterday, I asked the Minister for Regional Development about what action the government was taking regarding the bank closure in Coober Pedy and in other regional towns. The minister responded that:

…South Australia was amongst the worst impacted states in terms of regional bank closures. However…these are corporate decisions that are very much independent of the government of the day.

This morning, the ABC reported that locals in Coober Pedy are buying safes and are scared of being robbed while driving 500 kilometres to Port Augusta to make major deposits after the closure of the town's only bank. David Kelly, the Chief Executive of the District Council of Coober Pedy, was quoted in the article as saying that people are 'feeling pretty anxious about being pulled over on the road and robbed'.

My question to the minister therefore is: in light of these reports, what action has the minister taken to ensure the safety of people in Coober Pedy trying to access banking services? Specifically, has the minister raised the issue with the Minister for Police? Have any additional resources been allocated to manage this problem, or does the minister simply maintain her view that this is a corporate decision, independent of the government of the day?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I thank the honourable member for his question. I will certainly make inquiries with the Minister for Police. I haven't seen the article to which the honourable member is referring, but it may well be that the Minister for Police has done so. I think it's also worth mentioning that the Rural and Regional Affairs and Transport References Committee of federal parliament is currently undertaking an inquiry into bank closures in regional Australia. They are taking submissions until, I think, the end of March. They intend at this stage to report by the end of this year.

I think that is also an important opportunity to make a number of these issues known, and I would encourage the honourable member, if he is in contact with people who are affected, to encourage them also to make such a submission. I think it's an important opportunity to be able to shine even greater light on the inconveniences and difficulties faced by people in regional areas when banks do close, and that the banks are constantly making these decisions. They are independent decisions, but they seem to take no account of the difficulties that they place on regional people when they do take these decisions.

22 February 2023

The Hon. R.A. SIMMS: I move:

That this council—

1. Notes with concern that:

(a) Westpac has decided to close their branch in Coober Pedy, leaving the community without a bank; and

(b) at least 22 regional towns have been left without a bank branch including Burra, Kapunda, Mannum, Maitland, Peterborough, Roxby Downs, Tailem Bend, Tumby Bay and Willunga.

2. Recognises the adverse impact of the closure of banks on regional communities and in particular the impediment it places on community and business activity.

3. Condemns the closure of bank branches in the regions and calls on Westpac to reconsider its decision to close its branch in Coober Pedy.

4. Calls on the Malinauskas government to formally raise the matter with Westpac and advocate for the retention of bank branches in the regions.

This motion is calling on this council to note with concern that Westpac has decided to close their branch in Coober Pedy, leaving the community without a bank. It notes that at least 22 regional towns have been left without a bank branch, including Burra, Kapunda, Mannum, Maitland, Peterborough, Roxby Downs, Tailem Bend, Tumby Bay and Willunga. It recognises the impact of these closures on regional communities and it condemns the closure of bank branches in the regions. It calls on Westpac to reconsider its decision to close its branch in Coober Pedy and also calls on the Malinauskas government to formally raise this matter and to advocate for the retention of bank branches in the regions.

Ideally, a motion like this would not be necessary because the government would be doing everything in its power to address this issue and to ensure that regional communities have the services they require, but I have been very disappointed by the laissez-faire approach that seems to have been taken by the minister, the Hon. Clare Scriven, on this issue.

I have asked the minister repeatedly in this chamber what the government have been doing and, really, it seems that the minister's solution for people living in Coober Pedy, where they cannot access an essential service like a bank, is consumer pressure. I am not sure what level of consumer pressure one can apply when they do not have access to any alternate services in their community.

The latest innovation that the minister has proposed is to make a submission to a Senate inquiry. Of course, I am supportive of members of the community doing that, but I had hoped that we would see a little bit more of an assertive approach from the Malinauskas government with respect to such a vital service.

This is particularly pertinent when one considers the enormous profits that are being made by our big banks. Let's consider some of the facts. Let's consider the latest financial reporting season. Westpac recorded a $5.65 billion profit and a 19 per cent decline in their operating costs. The NAB recorded a $6.81 billion profit, which represents an 11.5 per cent increase from the year earlier. ANZ recorded a $7.19 billion profit, which is up 16 per cent on the previous year.

On 15 February, the Commonwealth Bank announced that it had recorded a jump in its half-year profit to $5.1 billion—an increase of 9 per cent from the year earlier—off the back of rapidly rising interest rates and stronger business leading growth. Despite these amazingly significant profits, these enormous profits, Australia's big four banks continue to close their branches in regional towns throughout South Australia as well as the rest of the country and, of course, they continue to profit from rising interest rates.

It really is an outrage. Investing in South Australia's regions is important for our region's ongoing economic growth, sustainability and quality of life, particularly following the recent challenges of widespread drought, bushfires, floods and the COVID-19 pandemic. Banks provide a variety of services to their customers. They include enabling customers to open and close accounts, to deposit and withdraw cash, to obtain various types of loans. Historically, banks have tended to deliver these services through their branches and we know that this is particularly vital for older South Australians.

When a bank leaves a town, it leaves locals unable to use these services. On 17 February this year, Westpac closed its Coober Pedy branch. The closure of the branch effectively leaves the town without a bank and it is already impacting vulnerable consumers, particularly the elderly and First Nations people. Customers are being forced to drive to either Port Augusta or interstate to Alice Springs to access a branch, both of which are more than 500 kilometres away.

We heard today—and I raised this matter in question time with the minister—reports that residents of Coober Pedy are anxious about travelling in a car with large wads of cash because they are living in fear that they might be pulled over and robbed. This is not a satisfactory response and, again, what does the government suggest: make a submission to the Senate inquiry. Vote with your feet. Really, this is not acceptable.

Unfortunately, Coober Pedy is not the only town in regional South Australia to have had all of their bank branches closed. Since 2012, the following towns have been left without a bank: Angaston, Barmera, Birdwood, Burra, Freeling, Gladstone, Kapunda, Lobethal, Mannum, Maitland, Uluru, Peterborough, Riverton, Roxby Downs, Strathalbyn, Tailem Bend, Tumby Bay and Willunga. A total of 69 branches have been closed throughout regional South Australia since 2012.

There has also been a significant decline in the number of branches in remote Australia wide. In fact, 41 per cent of all branches closed were in regional and remote areas in 2020, despite these areas only making up 28 per cent of the Australian population. In its final report, the Regional Banking Taskforce, set up by the federal government in 2021, found that many older Australians, persons with disabilities, migrant communities and First Nations people face greater challenges and require more assistance when they are using their banking services.

When the banks close their doors, the challenges for these consumers are exacerbated. The task force ran for a year and received 416 submissions from rural residents who were distressed about dwindling essential services, limited access to cash and the slow economic death of their towns.

Not only do these bank branch closures increase the time and cost required to travel to access similar services but there is also a loss of face-to-face banking that is reducing the availability of information on services. That information is normally provided at a face-to-face level that is easier for people to understand and helps them understand their financial decisions and the options that they face.

It is morally wrong for these institutions that are making massive profits to close their branches in regional and rural Australia. Bank branches are essential services and they should be kept open for our regional communities. The government has a responsibility to advocate on behalf of these residents.

I know there has been a lot of discussion about the cost-of-living crisis at the moment. The narrative seems to be that this is being driven by wages growth. We know, of course, that that is not true and that wages have not kept pace with inflation. Rather, what we are seeing is profit price inflation; that is, large corporations are making enormous profits and, in turn, that is driving up inflation. Those costs are now being faced by consumers, and we are seeing that with the cost of housing and other essential services in this country.

The big banks have been one of the major beneficiaries of profit price inflation in this country, and yet, in the face of those record profits, they close regional branches with impunity, they thumb their noses at the community, and they rake in these record profits and do not invest in any level of community service. I think it is absolutely outrageous. Really, the Malinauskas government needs to step up here, rather than simply palming it off onto other levels of government or saying it is all too hard. They need to step up and show some leadership.

I do want to put members on notice that I plan to bring this matter to a vote in a future parliamentary sitting, and I look forward to members getting behind this very sensible push to try to bring these big corporations to heel.

21 February 2023

The Hon. R.A. SIMMS: I seek leave to make a brief explanation before addressing a question without notice to the Minister for Regional Development on the topic of regional bank closures.

Leave granted.

The Hon. R.A. SIMMS: In the last session of parliament I asked the minister what action had been taken to avoid the closure of the Coober Pedy bank branch. It has since been reported that Westpac and the Commonwealth Bank have paused some of their regional bank closures; however, this has not included closures in some of our South Australian regional communities. The bank branch in Cooper Pedy has now been closed, leaving that town without a bank, and another branch, in Tailem Bend, is still slated for closure.

Meanwhile, some of our big banks are reporting massive profits. The Commonwealth Bank reported a $5.15 billion cash net profit after tax for the half year ending 31 December, a 9 per cent increase on the previous year. The National Australia Bank announced an 18.7 per cent increase in their cash earnings for the first quarter of 2023, and last November Westpac released data showing that their statutory net profit was up 4 per cent to $5.69 billion for the full year 2022 compared to the full year of 2021.

My question to the minister therefore is: since the last session of parliament what action has she taken to ensure that no more regional towns are left without local bank branches?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): I thank the honourable member for his questions. I do know, as we all do, that over many years now the larger banking organisations have taken resources out of regional areas, and quite rightly many people in those areas are upset. They rely on those banks and they rely on those services, and they have every right to be angry and upset. I think when large corporations take resources out of regional communities no amount of spin can make up for that. It can't take away from the fact that it does hurt regional communities and makes life more difficult and in many circumstances also makes business more difficult.

According to 2021 figures that I have—I have seen quoted on I think theregional.com.au, who take a keen interest in highlighting the plight of regional banking—apparently South Australia was amongst the worst impacted states in terms of regional bank closures. However, as most people are aware, these are corporate decisions that are very much independent of the government of the day. Closures happened under the former Liberal state government, and unfortunately they will continue to happen under future governments as long as profit is put before people by these corporates.