Tuesday, May 29, 2018

Commonwealth Bank, Education Department deny request for information about payments

ABCNews: Josh Bavas: New Delhi: Tuesday, May 29, 2018.
Queensland's Education Department has refused to reveal how much it receives from the Commonwealth Bank for allowing the company to run its School Banking program in classrooms.
Under the program, schools receive:
  • An establishment contribution of $200
  • An annual contribution of up to $600, depending on the number of students who sign up
  • A regular savers contribution of $5 for every 10 deposits per student
Every year the bank spends millions of dollars on "fundraising support" for schools across the country to help sign students up to the program, which features the children's Dollarmites Club.
According to its website, the Commonwealth Bank donates about $100 a year for every 100 students that take part in the program, $5 for every 10 deposits processed per student and an establishment contribution of $200 per school.
An ABC News Right to Information (RTI) request with the Queensland Department of Education, to establish exactly how much has been donated, was rejected.
The School Banking program has been hit by revelations Commonwealth Bank staff fraudulently manipulated thousands of children's accounts to meet their targets and earn bonuses.
A Queensland Department of Education RTI officer wrote to ABC News saying it had located 13 documents regarding donations in the last year but releasing them would be a "breach of confidence" for the bank and "contrary to public interest".
"The bank has also specifically objected to the release of the exempt information as part of this application," the officer said.
"I am therefore satisfied that disclosure of the information under the RTI Act would constitute an unauthorised use of the confidential information."
Program could be worth billions to CBA
Consumer group Choice spokesman, Xavier O'Halloran, said the program was "problematic".
"We don't have a problem with kids learning about finances but when they're getting their financial information from one bank, that bank has a virtual monopoly over them," he said.
"Does it really have to be tied to them selling their own products to school children?"
He said the school banking program is estimated to be worth billions of dollars to the bank in the long run.
"They've built up trust with young customers and later in life they sell them into credit cards, sell them into home loans and sell them into superannuation products — so it's very profitable for the bank. "A private institution is giving money to a public school, then that sounds like the kind of thing that should be in the public interest and I'm surprised it hasn't been publicly released.
"We need independent education in this country and we shouldn't be looking for private enterprise to be stepping in and trying to sell products and passing it off as financial literacy."
Program teaches 'good money practices'
A Commonwealth Bank spokeswoman said the program had been running for decades and helped to "teach kids good money practices". "We have a strong and respected track record of providing quality financial education programs in Australia," she said. "The school banking program has been designed to encourage regular saving behaviour.
"This is what is at the heart of our school banking program — teaching kids good money habits that will carry them into adulthood." Education Minister Grace Grace also refused to release the figures. "I respect the RTI process and the independence of RTI officers in their decision-making and I will therefore not be overturning the decision," she said. "There are processes available for applicants to appeal a decision."