Questions have emerged about Heritage Isle’s proposed merger with a Sydney financial institution.
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Heritage Isle members will vote on a merger with Police Bank at a special meeting on April 19, however Launceston Chamber of Commerce executive officer Neil Grose has some concerns that the merger would see “local members interests diminished”.
Heritage Isle chairwoman Liz Swain said clients would benefit from increased staff and improved service after the merger.
She also said the credit union’s members would gain access to fixed-term home loans, a credit card product and banking apps, all of which Heritage Isle could not afford to provide.
“The proposed merger has been reviewed and approved by the industry regulator as being in the best interests of the members,” she said.
“The Heritage Isle members will become Police Bank members and all our members assets remain with our members, as with all banking institutions, regardless of location with Australia.”
Under the merger all of Heritage Isle’s $94 million worth of assets would be transferred to Police Bank, however the credit union’s Tasmanian branches would remain functional.
The branches – located in Launceston, George Town and Beaconsfield – would all retain Heritage Isle branding.
Police Bank also has plans to add a fourth Heritage Isle branch in Hobart.
However, Mr Grose questioned whether the merger was in the best interests of the credit union’s 6667 clients.
“A number of concerns have been raised with the chamber that control of members’ funds will be transferred to Sydney rather than here in Tasmania,” he said.
“While it is commendable that the board of Heritage Isle is actively looking for ways to improve service levels to its Tasmanian members, the question remains if the best interests of their members are served by this merger.
“With only one Tasmanian board member on the proposed new structure, there is some concern being expressed that this will not be in the best interests of local Tasmanians.”
Ms Swain said the addition of only one board member to the post-merger board structure was due to the credit union’s small asset value, compared to Police Bank.
Police Bank is one of the top-10 largest mutual banks in Australia, with assets of $1.54 billion.
Stefan Boscia
Stefan came to The Examiner after working as a copywriter at a digital media firm in Melbourne and interning at The Conversation. He is enthusiastic about reporting on business, local government and environmental issues. When he is not chained to his work desk, Stefan enjoys getting brunch, reading Saul Bellow novels and watching Carlton games.
Stefan came to The Examiner after working as a copywriter at a digital media firm in Melbourne and interning at The Conversation. He is enthusiastic about reporting on business, local government and environmental issues. When he is not chained to his work desk, Stefan enjoys getting brunch, reading Saul Bellow novels and watching Carlton games.
