2020- 2022 Policy Process | Green Party of Canada
Where GPC membership collaborates to develop our policies
Submitters' Names
John Turnbull and Tom Mitchell
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":
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."
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.
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4 comments
This would be great for Norther, remote and rural area's of Canada. In some of the far norhtern communities peoples cheques go to the local retailer (NorthMart, Coop) and banking is done with the local merchant. The Canada Post outlet is also often run through the same store but it's better to have basic services such as banking officially in the hands of a public (crown) corporation. I love how Canada Post has stayed relevant and as far as union's go one of the best union's in our country. I love Canada Post for helping out us green's when we were truly grass roots. I won't ever forget your help. Great to see the Union making itself relevant and connecting Canada from coast to coast to coast.
Conversation with Neil
The reason there are fewer banks is because it is not profitable; more people are banking online. Now, take an unprofitable idea and put it in the hands of the Canadian government and it will turn into a giant pit sucking in taxpayers dollars. There will never be "proceeds" (= profits) from this: if it was profitable, the private sector would be involved.
Banks already exist with no fees, so this proposal just puts an overpaid civil servant teller into every post office, almost certainly next to the existing postal worker - especially if public sector unions are involved (CUPW). My wallet is getting lighter even thinking about it.
This seems to be aimed at rural and northern areas where many current post offices have little security; now they will be bigger targets, even after costly upgrades (and after proposal P051 which defunds the RCMP, in whose jurisdiction these banks will be).
I think the proposal is a noble idea, but the execution is faulty: getting the government involved is a non-starter.
Helping people bank online and financial education are better ideas, and this is already being done, and often done better through community organizations and non-profits.
Community banking: credit unions. If the GPC thinks this is a good idea, what about a credit union owned by GPC members and with one branch for each post office in the country(> 6000)? No?
love the credit union idea, Neil
"... connect Canadians with their federal government in a social contract that prioritizes the public interest of communities." This is not about profit, it's about service and fairness.
Because of family ties with Japan, I've had first-hand experience of how well-run and financially powerful such a bank can be.
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