Russell with no bank spells trouble, warn locals

FRUSTRATION: Customers of Westpac branch in Russell gathered outside the bank after learning of its impending closure. PHOTO/STEPHEN WESTERN

The closure of Russell's only bank means business owners will face a greater risk of robbery as they keep more cash on their premises overnight or carry it via ferry to Paihia, aggrieved townsfolk say.

Locals were informed last week that Westpac would close its Russell branch as of September 13. Within hours of the announcement about 40 people had gathered outside the Cass St branch to tell the visiting area manager what they thought about the closure and the short notice.

As well as the inconvenience to businesses dealing with significant sums of money over summer, locals worry about the extra cash that will have to be stored or taken to Paihia by ferry.

Russell resident Stephen Western, who runs a yacht charter business and a bed-and-breakfast, likened the closure to a marriage break-up.

"It's very disappointing. It's like a divorce. You rely on someone, then suddenly they're gone. It's unacceptable."

Businesses would have to keep more money on their premises overnight, burglaries could increase and business owners would have to beef up security. They could also be robbed while taking cash to Paihia.

"It's a huge risk. There'll be just one route to the bank."

The closure also posed all sorts of practical problems.

"You can't shut a bed-and-breakfast down for a couple of hours just to go to the bank," he said.

The car ferry and some passenger ferries are operated by Fullers GreatSights, which manager Charles Parker said would also be inconvenienced by the closure. Fullers had an operation in Russell and an account with Westpac so staff did not have to take cash to Paihia.

"It is of concern to us and we're working through our options," Mr Parker said.

An upgrade of the Westpac ATM with a cash drawer capable of taking deposits would go some way to alleviating the company's concerns. Fullers had yet to consider the implications for security on the ferries.

"Our staff are responsible for safe operation of the ferry, not looking after large amounts of cash," he said.

Unfortunately for Russell, it seems unlikely another bank will step in to fill the gap.

Kiwibank is effectively a franchise operation run through the PostShop network. Russell has a mail centre at its bookshop but not a full PostShop.

Kiwibank communications manager Bruce Thompson said if economics were forcing Westpac to close, it was unlikely the figures would stack up for any other bank. Banking had become a casualty of technological change, he said.

When ANZ swallowed National Bank last year, leading to some branch closures, the company said the savings could be used to open branches in towns which no longer had banking services.

However, an ANZ spokesman said Russell was not being considered for a new branch.