Time up for money exchange

The Maungaturoto Money Exchange tellers Paula Mooney and Danielle Williamson are to end work on June 29 when the Exchange closes.

The Maungaturoto Money Exchange is to lock up its till for the last time in two weeks.

Don McKay, chairman of the Maungaturoto Community Charitable Trust which set up and runs the exchange, said courier costs and a move towards a cashless society are the main factors behind the closure.

"Over the last two years the security transport costs have been relatively static at, on average, $25,500 per annum but there has been a marked drop in the amount of cash being deposited over the last three to four years."

The exchange was open three days a week in rented premises and employed a teller - the two other major costs. The operation was overseen by a committee of two trustees and two elected community representatives, with the aim of "breaking even", Mr McKay said.

He said the exchange - which the trust set up in 1999 after the BNZ and National banks closed their branches in the village - had a peak in 2007-2008 of $30 million delivered to banks but there had been a steady decline since, down to $14 million in 2013-2014. This year is expected to be about $10 million.

"So while costs have remained relatively constant over the last two years, income from transactions has dropped dramatically," Mr McKay said.

"The money exchange made a loss of $6291 last year and this year is tracking to double that. The community trust cannot afford to shoulder these increasing losses, which are predicted to continue increasing due to the ongoing use of electronic transfer of funds."

There has been a corresponding drop in the number of transactions processed, he added.

Mr McKay said with the BNZ closing in Wellsford, the closest banks would be in Warkworth, Dargaville, or even Whangarei.

He said businesses in the village would also feel the loss - though an approach late last year to businesses asking if they would subscribe to the service to keep it alive was not supported.

Mr McKay said there was still a possibility the village could have a banking service, after the members of the community approached the BNZ about installing an ATM capable of taking deposits as well as dispensing cash.

He is waiting for the bank's response.

The exchange's last trading day will be Wednesday, June 29.

- If you have any business news, tips or ideas contact me at biz@north ernadvocate.co.nz or (09) 470 2838.