By David Friend
TORONTO (CP) - Finance Minister Jim Flaherty said Monday he expects some of Canada's biggest banks will respond to the concerns he has raised about automated banking machine fees, hinting that changes could be on the way without committing the federal government to take action.
The finance minister has focused on the ABM charges in recent weeks - as the minority Conservative government and opposition parties position themselves for a potential election - after NDP leader Jack Layton blasted the banks, calling on them to assure clients that they aren't "nickel and dimed" in the future.
Layton estimates the big banks rake in $420 million per year in ABM fees and is calling for a change to the Bank Act that will reduce or cut the charges.
Flaherty talked behind closed doors with executives of the six biggest banks and said afterward he was especially concerned at how the fees affect low-income Canadians such as students, seniors and people with disabilities.
"I expect some of the banks will respond to the concerns of Canadians," Flaherty said, refusing to offer any more detail.
NDP finance critic Judy Wasylycia-Leis said more solid regulations need to be put in place.
"I hope in the end we see some real movement on the part of the banks, and if they refuse, I expect to see the minister come in and exercise his power and authority," Wasylycia-Leis said.
"I'm a little afraid that there's some resistance on the part of the banks or else Mr. Flaherty might've left that meeting with a much clearer message for us," she said.
"I just hope it translates into more than simple backroom swap sessions and rhetorical statements."
Critics of Layton's proposal have suggested that cutting ABM fees would only cause the banks to build the fees into other service charges.
Flaherty said this wasn't discussed at the meeting, but added that he believed there is a "good working relationship" between the government and the banks, and suggested that for that reason it was unlikely that they would shift the burden to built-in fees.
The minister detailed his own concerns, saying that many university campuses have only one bank's machine on the premises, forcing students from other banks to pay the so-called convenience fees.
Wasylycia-Leis has pushed for full-disclosure from the banks outlining how fees are broken down. She said this would ensure the banks don't shift ABM service charges to another area of their fees.
She said those proposed changes have been met with resistance from both members of Parliament and the banks.
"The banks think they can hold out and bide their time because they're not getting the pressure from the government."
Copyright © 2007 Canadian Press
TORONTO (CP) - Finance Minister Jim Flaherty said Monday he expects some of Canada's biggest banks will respond to the concerns he has raised about automated banking machine fees, hinting that changes could be on the way without committing the federal government to take action.
The finance minister has focused on the ABM charges in recent weeks - as the minority Conservative government and opposition parties position themselves for a potential election - after NDP leader Jack Layton blasted the banks, calling on them to assure clients that they aren't "nickel and dimed" in the future.
Layton estimates the big banks rake in $420 million per year in ABM fees and is calling for a change to the Bank Act that will reduce or cut the charges.
Flaherty talked behind closed doors with executives of the six biggest banks and said afterward he was especially concerned at how the fees affect low-income Canadians such as students, seniors and people with disabilities.
"I expect some of the banks will respond to the concerns of Canadians," Flaherty said, refusing to offer any more detail.
NDP finance critic Judy Wasylycia-Leis said more solid regulations need to be put in place.
"I hope in the end we see some real movement on the part of the banks, and if they refuse, I expect to see the minister come in and exercise his power and authority," Wasylycia-Leis said.
"I'm a little afraid that there's some resistance on the part of the banks or else Mr. Flaherty might've left that meeting with a much clearer message for us," she said.
"I just hope it translates into more than simple backroom swap sessions and rhetorical statements."
Critics of Layton's proposal have suggested that cutting ABM fees would only cause the banks to build the fees into other service charges.
Flaherty said this wasn't discussed at the meeting, but added that he believed there is a "good working relationship" between the government and the banks, and suggested that for that reason it was unlikely that they would shift the burden to built-in fees.
The minister detailed his own concerns, saying that many university campuses have only one bank's machine on the premises, forcing students from other banks to pay the so-called convenience fees.
Wasylycia-Leis has pushed for full-disclosure from the banks outlining how fees are broken down. She said this would ensure the banks don't shift ABM service charges to another area of their fees.
She said those proposed changes have been met with resistance from both members of Parliament and the banks.
"The banks think they can hold out and bide their time because they're not getting the pressure from the government."
Copyright © 2007 Canadian Press