I discussed with Greg Jennett the cash drought and the news that Armaguard is in financial trouble, which could have repercussions for cash.
Armaguard is owned by transport magnate Lindsay Fox. His business interests extend not just to trucking but airports also. The Prime Minister attended Lindsay Fox’s lavish birthday party last year – a direct relationship there. Armaguard thinks it can use its connections with the Prime Minister to put its hand out for taxpayers money when there are other options available.
Banks are crying poor over the cost of their ATMs, but with profits at $31 billion last year, the banks could simply pay Armaguard more for their services. They could also stop blocking out smaller competitors like Commander Security, a small Australian cash handling company that wants to move cash for clients. Yet the banks refuse to accept their cash deposits. Why are banks forcing out profitable competitors? It appears so they can cry poor and put their hand out to the taxpayers.
The excuse that nobody uses cash anymore is a self-fulfilling prophesy. Banks are forcing people to use online transactions by closing bank branches – 2000 in the last 6 years, and by pulling out ATMs – 700 in the last 12 months. Banks charge fees on electronic transactions. They make nothing if you pay in cash and as they don’t know what you purchased, they can’t use that information to build your data profile.
The Optus outage last year demonstrated just how easy electronic commerce is to disrupt. Even before that outage drove people back to cash, usage had actually stabilised in Australia at $30 million cash withdrawals a month, with more than $100 billion of cash in circulation. Rumours of its demise are wishful thinking from our greedy, self-interested banks.
Banking is an essential service. If the banks are not going to fulfil their obligations and readily provide people with cash, then we need a people’s bank to do it.
Transcript
Greg Jennett: Now the use of less and less cash by Australians appears to be a choice made freely by consumers. But the problem is it’s having side effects right down the line all the way to the authorised secure trucks that transport cash from where it’s printed to the big four banks that buy from the Reserve Bank of Australia. Arma Guard is the one and only operator left in that market, and it’s in deep financial trouble with this side of its business that’s become a headache for the Big four banks, but also for some remote country towns, which you’re finding it hard to even get their hands on cash in some cases. One Nation, Malcolm Roberts, has been keeping an eye on the couch cash drought for quite a while now. He joined us here in the studio a little earlier. Malcolm Roberts. Welcome back to Afternoon Briefing. It’s been a while, so we’re glad you can join us. I know through monitoring committees and other aspects of the parliament here, you’ve been monitoring the decline of cash and its repercussions for quite some time. I thought we might focus today on some reporting about the possible decline of not one, but both cash in transit firms. These are the ones that officially transported around the country. Amaguard is under financial stress. What happens if they go under?
Malcolm Roberts: Well then banks need to find a way to move the cash. And what I think is going on, Greg, is that, well, first of all, Armaguard is owned by Lindsey Fox, who also owns other trucks, trucking businesses and also airlines. And he’s very close to Anthony Albanese who was at his birthday party recently. So, I think there’s some questions that need to be asked about that. But what’s happening is that Armaguard did a deal with the competition Consumer Commission just four months ago saying they promised if they were amalgamated, they would stay afloat for quite some time as a
Greg Jennett: … monopoly.
Malcolm Roberts: As a monopoly. And four months later they’re talking about shutting up shop. So that causes problems for the movement of cash and the banks want to get the taxpayers on the hook.
Greg Jennett: Alright, so who would or should pick up the tab if Armaguard is struggling here? Is it a government subsidy to them? Is it a renegotiated rate of payment from the Big Four banks? How does their financial predicament right now be alleviated?
Malcolm Roberts: There are competitors to Armaguard and one of them is Commander Security. It’s a small firm that can move cash around, but the banks refuse to deal with them. And the banks I think are even talking about banking commander security. They’re trying to wipe out competition. The other thing to remember, Greg, is you’ve taken a surprisingly strong stance for the banks. The banks have a social licence to fulfil. The banks operate in banking, and they must provide legal tender. That’s a fundamental to banking if you’re in banking, provide legal tender. And so, what we’re seeing is the bank’s trying to drive out cash and they shut 2000 branches in the last six years and they’ve shut 700 ATMs in the last 12 months. What they’re trying to do is drive out cash so that you have to use the bank digital transfers, which means you incur fees, which they’re missing at the moment, and also they miss your data. They want your data to build profiles about you.
Greg Jennett: Sure. So, in some country towns where bank branches are already thin or non-existent on the ground, I believe Australia Post has been playing a bit of a de facto role as a bank flying in cash in some cases at their own expense just to keep a town ticking over with cash. If we’re thinking laterally about solutions here, could Australia Post come into play with a funded obligation to be, I suppose, the bank of last resort in a country town?
Malcolm Roberts: Definitely the Australia Post licenced Post office is actually providing those services now, many banking services now, and they’re doing it for fees that some of the banks won’t disclose. Others will disclose. So, we would like to go beyond that and see if People’s bank, because the original Commonwealth Bank before it was privatised in 1995, was back in 1910 when it was formed by the Fisher Labour Government. It provided a vital service. It put our country on its feet, and it provided enormous competition to the globalist banks that own our big four banks. And so, what we need now is that same kind of competition from a people’s bank and the post office is one form of people’s bank that could be extended not just to a post office with banking services, but to a proper bank.
Greg Jennett: And should they be funded because under their obligations at the moment, Australia Post are in effect funded to do certain things but not the transportation of cash.
Malcolm Roberts: I think if they’re providing a service, they need to be compensated for that service. They need to be funded. And cash is a vital service. The availability of cash is vital because it provides competition, it provides choice, it provides freedom to escape the tyranny of the major banks.
Greg Jennett: As you’ve asked questions of different agencies in various committees on this over time, are you satisfied that they are focusing their attention on what looks like a pretty tight squeeze right now on Armaguard? We’re in an urgent state of resolution, aren’t we? Yes.
Malcolm Roberts: I think there’s an underlying premise to your question too, Greg. And that is that cash is dying. It’s not dying. It has declined until the recent years, but we still have 30 million cash transactions for withdrawal of cash [monthly] at the moment. A lot of people need cash. The Reserve Bank itself did a survey recently that said one in four older Australians can’t handle the internet – they must have cash. We also have $100 billion in cash in the economy. And so, cash is here to stay. And what we’ve seen is, I’ve been on a committee to inquire into the closure of bank branches in rural towns. And what we’ve seen is a deliberate push. It is deliberate, Greg to shut down bank branches and to shut down ATMs to drive people to towards cash. So, it’s people that decline in cash until recently when there’s been an uptick in cash, the decline has been driven by the banks for their own short-term and long-term money.
Greg Jennett: So, you’re saying this isn’t entirely market led by the customers, it’s actually being driven by them, but that’s irreversible, isn’t it? This trend towards bank closures only Last week in Western Australia, Bankwest converted itself as a subsidiary of the Commonwealth Bank of Australia into virtually a digital only bank. And we’ve had people on this programme, Malcolm suggest to us that that is a bit of a test bed for where others will certainly follow.
Malcolm Roberts: I think the banks will try to do whatever they can to minimise their costs and to maximise their revenue. But we must remember that banking is an essential service. Banks should not be controlling it at the moment, people. So, what we need is banks that provide a service and fulfil their social licence, they have an obligation to satisfy customers all over the country. And that’s what we need. And if they can’t do it, then let’s have a people’s bank like the Commonwealth Bank used to be.
Greg Jennett: Alright, well we’ll leave you to keep an eye on all things related to Cash Gold and the Malcolm Roberts in your work as a senator. And thank you once again for joining us today on this emerging story around Armagaurd. Thanks so much.
Malcolm Roberts: You’re welcome, Greg. Pleasure to be here.
Greg Jennett: Alright, we’re pretty much done with afternoon briefing for today.
I will not comply with this cashless bs or the digital id they don’t own us !!
I’m all for a Peoples bank. I deal with Suncorp bank and have done since it was a Building Society. They have now been bought by ANZ, so I daresay they will close down the branch that I deal with shortly. The big banks are as greedy as hell and this takeover should never have been allowed to happen. It only happened so that Albanese could shut down a cash society to further his ID ambitions. etc.
Thank you for publishing this piece and the video, Malcolm. I completely endorse what you have written here.
Unhappily, the big banks have been progressively moving away from being primarily providers of a service towards being government protected profiteers, ‘movers and shakers’ and opinion influencers. I chose recently to transfer an account from one of the lesser ‘Big Four’ because of it’s insistence on political activism.
About three decades ago, the major banks introduced ATMs as a cost saving/profit increasing/employment reducing measure. It seems that they are no longer satisfied with their increased profit, wanting to go further despite the wishes and convenience of their cash using loyal customers. It seems they have probably forgotten both the reason why banks came into existence some centuries ago and the adage “the customer is always right”.
Paul
People’s Bank ,,,, excellent idea
. My advice would be for anyone who has money in the bank withdraw it and source out a place to keep it cash will always be currency , knowing that yours is going to be made available to you for withdrawal when you require it is an uncertainty down the track
We certainly do senator..look at bank west pulling out of the remote areas in Australia., I lisson to a talk show how bad it was going to be for the towns people and the elderly.i would of loved to of had my say, my suprise was that not one person said anything about the real reason why ,CBDC / to have more control over you .
Thank you Malcolm. A few weeks ago, I heard how Sweden intended to go all digital banking.
Suddenly they experienced a three days power outage, disabling all digital operations, during which Sweden lost billions of dollars-worth of business. I think they decided on retaining a certain amount cash availability, alongside the existing digital transactions.
Thank you for comments regarding the banks. Yes, most of us are aware and feeling the effect of same. What can we as a country join to do about it? The continuing restless loss of our democracy is of grave concern to many of us. I am very worried at where we are heading.
Kind regards, Lyn
Yes we need the people’s banks thought out Australia, as the people should be in control of their own hard earned money,and make a choice to where they want to use cards which have accumulate approximately ONE billion dollars in fees to today’s date.
Impossible to have a ‘cashless economy’ outside cities, western darling downs internet has been off for hours almost every other day since early February. Local businesses cannot trade. Residents and customers have now taken money out of bank accounts to carry around so they can shop for food when the eftpos is down. Cashless is impossible in the bush.
Sweden has recently made an “about-turn” on becoming a cashless society and Norway has by court of law decided against it.
The government should create a “worker’s bank” reserved for those who earn up to a limited amount with no regular fees attached to their accounts and the possibility to take out a loan.
Agreed – cash is always required. And these crashes of the digital system will continue to prove it
All customers banking fees to be included into the current taxable income so all charges imposed by banks is covered under the tax system for all tax payers, let the banks chase the government for fees
1 income taxed once
Not
1 tax for each dollar earned
Try taxing
Each dollar spent
There is only a very small percentage of Australia’s population that will benefit from a cashless society, a CBDC and of course our Digital Identity. I really wonder how being in a majority of population that sees the set up for failure by introducing these things, we seem to be powerless to have any effect on this outcome. The way of the world since 2019, the majority are silenced and we sit and watch this screwed up circus in disbelief. Many have a short term memory, for some we remember the Australia Card that failed and magically we ended up with a Medicare Card. They sell this as a convenience as though we must have it, because it will benefit us and we trade of our individuality and freedoms to have this only to see that the minority have screwed the majority, at which point its to late
A “cashless” society is a very real prospect. If it happens, along with the mass closing of Bank branches, we the people would be in great danger. There is more than enough lawlessness in our streets now. Once upon a time the Commonwealth bank was the peoples bank owned by the Australian Government. We desperatly need such a bank again. Especially for the average citizen who wants to feel confident as we go forward. The prospect of no cash in society would result in kayos when there is no electricity, no Atm’s, war time etc.
The thing to understand about ´digital’ money is that it would be PROGRAMMABLE. In real time.
Government would be able to stop people buying certain products (airline tickets, petrol, meat…..?) or making donations to causes the government didn’t like.
Companies could make part of your pay valid for company products only.
The risk of abuse by tyrannical governments is far too great to allow this ´money’ to be imposed on us. It’s a form of control. Refuse it!
To hell with a cash less society. The sooner we the people rid this country of the traitorous Psychopaths, Sociopaths and Narccissists pretending to be our government that are serving their overseas masters the better off this country will be.
Having physical cash helps students understand maths concepts like addition, subtraction, fractions, decimals and percentages. Children consolidate their maths skills when they spend their pocket money, tally up their piggy bank savings and play with make believe money in toy cash registers. An increasing number of younger cashiers can’t count change up to the nearest $1 or $10 because they haven’t handled cash frequently enough. Going cashless will make future generations mathematically challenged.