ON ATM FEES: Stop the gouging of average Canadians

Last week, during a meeting of the Standing Committee on Finance (February 15th 2007) I questioned the Minister of Finance, Jim Flaherty, why average Canadians are getting gouged while big banks reap the profits.

While the big-six banks made record profits - $19 billion last year – you and I coughed up $420 million of our own money last year at bank-owned ATMs.

The Conservative government has introduced changes to the Bank Act, but none of these address the issue of unnecessary ATM fees. At last week’s meeting, the Minister indicated that he was speaking to the banks about this. He also noted that it is the NDP who first brought this issue to the forefront.

The NDP has not only brought the issue of ATM fees to the forefront of Parliamentarians minds we also have a plan to make banks more accountable and transparent on a variety of issues. The NDP Plan would achieve increased transparency through an independent citizens’ watchdog capacity, community reinvestment requirements, better provisions around branch closures, credit card interest limits and better access to small business loans in addition to ending unnecessary ATM fees.

During the Committee meeting last week Minister Flaherty indicated that he is interested in ensuring competition and choice in the industry. I don’t disagree. But it is time for fairness for ordinary Canadians. Fees for basic services are just 5% of banks revenues, hardly a hardship if some of those are eliminated. Banks make their money from investing our savings and charging for loans, mortgages and other services.

Ordinary Canadians paid $420 million in ATM fees last year. TD Bank customers in the U.S. don’t pay ATM fees, just their Canadian clients. Banks in the UK stopped charging ATM fees years ago. Is it fair that consumers in the UK and U.S. some of them clients of Canadian banks, get a break while we do not?
It is not.

Ending unnecessary ATM fees is only one way I’m working with my NDP colleagues to make life more affordable for Hamilton’s families.

** This opinion piece was distributed to all local print media on February 20th 2007.