3. Will the Minister make a statement on banking services for voluntary bodies and organisations in Wales? OQ56880

Diolch yn fawr, Llyr Gruffydd. I am concerned at the reduction of banking services in Wales due to the ever-increasing numbers of bank closures. We continue to use our influence with the banking sector and UK Government to ensure that banking services for voluntary bodies and organisations in Wales are maintained.

Thank you very much for that. Banks are starting to charge voluntary organisations for banking services, even though very often they don't have many financial transactions happening from one year to the next, and they don't have many funds in the account, so having to pay to have a bank account is disproportionate. It's going to have a significant impact on them as bodies. Some of these banks at the same time of course are trying to portray themselves as local banks that support the communities of Wales, but the truth is, they're closing branches, they're withdrawing from these communities and now they're punishing voluntary organisations in local areas for banking with them. So, can you as a Government send a clear message to these major banks that this is unacceptable? Can you also give us an update on where we are with establishing Banc Cambria, and when do you foresee that that, perhaps, will be able to step into the breach and provide alternative services for the thousands of voluntary organisations that we have, as well as the wider population?

Diolch yn fawr, Llyr. I am aware that a number of voluntary organisations are experiencing difficulties with regard to banking services. That could be, as you say, identifying an account that is free—another burden for the voluntary sector—and also suitable to the needs of the voluntary organisations, as well as if there's one anyway now, with the closure of banks in the first place.

I think it is important that we look to our 19 county voluntary councils, particularly for the third sector—the voluntary organisations that do provide advice and guidance to the sector in their areas, in their communities—but also look to credit unions in Wales. They're able to provide accounts and banking facilities to charitable organisations. I do want to just mention a great voluntary organisation, a charity called Purple Shoots. They've been working with credit unions to promote opportunities to promote services with the credit unions for this purpose. And also, we've just appointed WCVA to establish the community asset loan fund on our behalf. We will meet with banks very shortly to remind them of their need to ensure that people in Wales are not disadvantaged by their decisions to keep closing branches, and we will raise this issue that the Member has raised with them in terms of the opportunities for voluntary organisations.

We do obviously have our commitment to our community bank. It's very tightly regulated; I think I responded in previous questions about this. Establishing the community bank for Wales is under way and, in fact, the Minister for Economy, Vaughan Gething, has got the oversight of the creation of the community bank for Wales in its development phase through to the establishment by the private sector. Of course, it's Banc Cambria, and it's subject to regulatory approval when we get to that point. It is going to be a mutual bank headquartered in Wales, owned by and run for the benefit of its members with 30 new outlets over the next decade. I know that we will be able to update Members on progress, starting, of course, with the update from the Minister for Economy.

Minister, our charities, voluntary groups and church groups rely on small-bank-balance accounts, so it is disheartening to hear that from November, one high-street bank will be charging these small-scale organisations £60 annually just to keep the accounts open. I'm informed that they also will be introducing new charges for branch transactions, including a fee to pay in and withdraw cash, with 40p to deposit just a cheque. The concern is that other banks will follow suit either by implementing similar charges or removing local in-branch services altogether. In just the last week I've received reports that a group in my constituency is now having to keep their money in a safe, as increased bank account charges have become such a worry. Many treasurers of these cherished community groups and churches can be quite elderly, and they are now contemplating relinquishing these responsibilities because of the lack of face-to-face local services and increasingly complicated procedures. With this in mind, Minister, what more support can you provide to assist these small groups? Would you be prepared to use the Development Bank of Wales or, as Llyr Gruffydd has suggested as well, Banc Cambria, as a means through which small community groups can open and maintain bank accounts on a much easier basis? Thank you.

I'm grateful again to Janet Finch-Saunders for identifying, through experience fed back by voluntary organisations, the impact of these charges, as well as, obviously, just accessing banking services being increasingly difficult. Can I just repeat that it is very important that we link to our councils for voluntary service, who are engaging with this? We are meeting with the banks shortly and we will put this on the agenda.